Purchase Control - Flipbook - Page 102
19. Invoice Verification
Introduction
When parts have been ordered, and receipted into stock, the stock holding and stock valuation will have changed.
Unless the accounting system is informed of this event, the 'Stock control' and 'Accounts' stock valuation will
never match. It is therefore necessary to update the Accounts system and the Stock system by the same value.
The Verification of Received Invoice routine is designed to assist you in keeping the two values in step with one
another. It is up to the individual dealership to decide whether the responsibility for verifying the invoices lies with
the Accounts or Parts staff. It is important to keep up-to-date with the task, as the purchase files will not be
cleansed until the lines purchased are fully verified.
Verifying an invoice will allow the system to transfer the value from Goods in Suspense in the Nominal Ledger into
Purchase Ledger Control indicating that the invoice has been accepted as being correct. If the Purchase Ledger
Invoice Register facility is not being used to register parts invoices prior to verification then the Accounts staff
must take no further action to process the invoice onto the Purchase Ledger, as the successful verification will
have transferred the invoice into the appropriate Purchase Ledger account.
If the Purchase Ledger Invoice Register is being utilised, and the parts invoice from the supplier has already been
registered, then the verification process will link to the registered invoice, and then debit the Goods-in suspense
account and credit the Invoice Register suspense account. In either way, any difference between the Goods-in
suspense account and the invoice total will either have to be posted as an expense item, such as carriage,
packing or in some cases VOR surcharges, or written off to a purchase price variance account (where the
difference is acceptable).
Printing the system generated Goods Received Notes (Reports and Enquiries) may prove to be a useful aid when
verifying the invoices received, as this gives a quick visual check against values and may highlight instantly any
areas of difficulty.
Key Information – Invoice Verification
30/07/2008
Page 102 of 126
