All 24 Invoice Processing questions
More in Invoice Processing
What is a self-billing invoice? Walk through the journal entry when a supplier invoice is recorded. What is a duplicate invoice and how do you prevent duplicate payments? How does electronic invoicing (e-invoicing) and OCR improve AP processing? What is an approval workflow and why is it important? How is input VAT/sales tax handled on purchase invoices? What is a credit note (credit memo) and how is it processed in AP? How are foreign-currency supplier invoices recorded and revalued? What is a pro forma invoice and how is it treated? How are prepayments to suppliers accounted for?
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Accounts Payable & Receivable › Invoice Processing

What are invoice exceptions and how are they handled?

Intermediate

Answer

Exceptions are invoices that can't process automatically: price or quantity mismatches to the PO, missing goods receipts, no PO, coding errors, tax discrepancies, or blocked/held vendors. They are routed to buyers, receivers, or approvers to resolve, and tracked so they don't delay payment or age unnecessarily.
Real-world example An invoice priced $2 above the PO is held as a price exception and released only after the buyer confirms an agreed price increase.

Common follow-ups: Who resolves a quantity mismatch? | How do exceptions affect DPO?

Purchase Orders & 3-Way Matching Aging Analysis Invoice Processing
All 24 Invoice Processing questions