Approving Supplier Invoices

You can also use invoice status codes to lock invoices for payment and to assign a status of Approved to invoices that you want to match against receivers or release for payment. Again, you normally create specific invoice status codes with these fields selected, and select the appropriate code for the stage in the process.

The Invoice Approved field applies a status of Approved to the invoice. You can apply an invoice status code with the Invoice Approved field selected to mark the invoice as reviewed and approved. You can then report on invoices with the Invoice Approved status.

Applying an invoice status of Approved indicates that the invoice is valid, but does not have an effect on payment selections or receiver matching. Invoices do not need to have an approved status in order to be matched against receivers or to be included in payment selections. See Invoice Allocation and Approval.

Create specific invoice codes with the Invoice Approved field selected for regular suppliers with whom you have an ongoing purchasing relationship. In this way, you can create a regular invoice, matching, and payment cycle for payments that normally do not require an internal review.

When an invoice status code with the Lock Payment field selected is applied to an invoice, the invoice cannot be included in any automatic payment selections. Use this field to identify contested invoices that should not be paid until further approval, or invoices you want to keep on hold for cash flow purposes until a later accounting period.

In Supplier Invoice Approval Flow, the AP clerk applies the appropriate invoice status code at different stages in the flow.

An invoice status code with both Lock Payment and Invoice Approved is initially applied to the invoice. This allows the accountant to review the invoice and supplier details and the current cash flow situation. The accountant decides to lock payment of this invoice at this time, and the AP clerk selects an invoice status code with Lock Payment selected and applies it to the invoice. Once saved, the invoice now cannot be included in any supplier payments and is effectively on hold.

Following a change in the cash flow situation or in the supplier’s status, the accountant decides to release the invoice for payment. The AP clerk selects an invoice status code with the Invoice Approved field selected and the Lock Payment field deselected. The invoice now has an approved status and can be released for payment.

For supplier opening balance, you should choose an invoice status code that has allocation. You can choose any invoice status code of that type, but may use different ones for different invoices, so that some could be unapproved or locked for payment.