All 21 Purchase Orders & 3-Way Matching questions
More in Purchase Orders & 3-Way Matching
What is the accounting flow across PO, goods receipt, and invoice? What does it mean to 'short pay' or 'block' an invoice, and when is each used? What is a PO commitment and how does it aid budgeting? How are freight, duty, and miscellaneous charges handled in matching? How does PO matching support period-end accruals? How do you reconcile and clear an aged GR/IR account? How does procure-to-pay automation reduce matching exceptions? How do matching controls support SOX/segregation of duties? How do you handle price variances between PO and invoice in inventory accounting?
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Accounts Payable & Receivable › Purchase Orders & 3-Way Matching

What is evaluated receipt settlement (ERS) / pay-on-receipt?

Intermediate

Answer

ERS pays the supplier based on the goods receipt and PO price without waiting for an invoice—the system generates the payment from receipt data. It eliminates invoice processing and matching exceptions for trusted suppliers with accurate PO pricing, but depends on reliable receipts and agreed prices.
Real-world example A trusted parts supplier is paid automatically on goods receipt under ERS, removing invoice handling entirely.

Common follow-ups: What does ERS require to work? | How does it reduce exceptions?

Invoice Processing Payment Runs Purchase Orders & 3-Way Matching
All 21 Purchase Orders & 3-Way Matching questions