Sarah Chavez & Juliet RobertsTraining & Communication SpecialistsVPCFO Training & Communications

Invoice Review and Approval

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Agenda• Workflow stops & action required

• Managing invoice approvals

• Invoice review demonstration

• Rejecting invoices and requesting support

• Wrap up & resources

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Learning Objectives• Define which invoice workflow stops require department action.

• Describe what action is required by an invoice approver at each workflow stop.

• Filter the invoice approvals page by workflow stop.

• Review and approve an invoice.

• Describe when rejecting an invoice is appropriate.

• Contact Accounts Payable staff for help on an invoice.

Workflow stops & action required

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Invoice processing overview

Step 1

• Invoice submitted by supplier via email, electronic file, portal, or mail.

• Emailed and mailed invoices processed by Digital Mailroom (DMR).

Step 2

• Supplier invoice used to generate BUY.IU invoice (begins with “SI”).

• BUY.IU invoice reviewed by Accounts Payable (and sometimes Supplier Data Management (SDM)) if necessary.

Step 3

• Matching rules applied by system.

• Invoice routes to department for review if necessary.

Step 4

• Purchasing review.• If invoice contained

matching exceptions or was force matched, routes through Purchasing for review.

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AP & SDM review• Some invoices route through AP and/or SDM for review.

• There are a variety of rules in BUY.IU that drive this. Here are a few:

– DMR-processed invoice may require additional review.

– The invoice relates to a subaward (commodity code ORA1).

– The invoice involves a foreign supplier.

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AP & SDM workflow stop summary

Workflow stop Trigger

Invoice Import NotificationsDMR-reviewed invoice is missing required information or was not appropriately assigned to a valid PO.

AP Invoice ReviewSDM reviews foreign supplier record to ensure payment information is on file.

Unique Supplier Various. Impacts invoices submitted by utilities, ORA1, and others.

AP & SDM work invoices in order received and as

quickly as possible.

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Warnings and notifications after

initial invoice import.

These are being investigated by AP.

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Yellow = active workflow stop.

AP or SDM will contact you via the comments if they have questions.

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Click on the workflow stop name to view a

list of approvers.

These are the individuals who can

act on the document.

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Department review• After AP has completed their review, invoices may route to

the department for review.

• Invoices that always route for review:

– Invoices which failed one or more tolerance rule.

– Recurring PO invoices greater than or equal to $5,000.

– Payments to foreign suppliers which are missing tax or gross up information.

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Department workflow stop summaryWorkflow stop Trigger Action required

Matching ExceptionBased on how invoice was applied to the PO, invoice exceeded acceptable matching tolerances.

Review the supplier invoice image for accuracy. Ensure invoice was applied to PO correctly.

Recurring Payment Review Invoice with a value greater than or equal to $5,000 applied to a recurring order PO.

Ensure proper receipt has been logged and review invoice for accuracy.

FO Treaty Check

Supplier’s profile contains a non-US country of origin and the “Gross up?” question in the Tax Information section of the requisition was not completed.

Log a comment on the invoice stating whether the payment should be grossed up. If services performed in the US, confirm immigration paperwork submitted to University Tax Services.

Managing invoice approvals

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Click the flag icon to see the Action Items quick menu.

My Assigned Approvals = documents you’ve assigned

to yourself.

Unassigned Approvals = documents available to

workflow stop approvers for review.

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Further down the dashboard you’ll find the My Action Items

widget.

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Document types listed in tabs across the top.

Click a folder to expand and see

documents awaiting approval.

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Click to view filter options.

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Filter by workflow stop to review similar invoices one after the other.

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Change display to return all pending documents and assign all at once.

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Check the box to select all invoices on the page.

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Assign documents to yourself.

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Assigning invoices• Invoices can only be assigned to yourself.

– Once assigned, you’re the only person who can act on the document.

– Assigning communicates to other approvers that the document is being reviewed. A way to "hold" a document while you wait for additional details or research.

• Allows you to edit funding information on the invoice.

– Funding edits are for that invoice only. Permanent updates must be made using a change request.

“Fun” Fact:BUY.IU will allow you to

assign an invoice to yourself even if you can’t approve the invoice due to segregation of duties.

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Uncheck this box to view assigned invoices.

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Do not approve an invoice without reviewing it first!

My Invoice Approvals folder contains assigned invoices. Click

folder name to expand.

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Click “SI” invoice number to begin review.

Invoice review demonstration

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Yellow warnings should be reviewed but can likely be

ignored.

Red errors must be resolved in order to approve.

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View the supplier invoice image.

Amount that will be paid if invoice reaches Completed status.

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Can still download the PDF image if

you prefer.

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Click the hamburger menu to hide right side menu

containing warnings and workflow.

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Payment is generated 4 days before the due date.

Past due payments are generated the next

business day after reaching Completed status.

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This account and object code will apply to the entire

payment unlessinformation was entered at

the line item level.

Edit accounting information.

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Review Matching for more details on invoice application

and to verify receipts.

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Total quantities and amounts invoiced over life of the PO, not just the current

invoice.Details from PO line 1.

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No receipts have been logged.

Invoices that route to the Recurring Payment workflow

stop must have receipts logged prior to approval.

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Invoice is ready to approve when:• Verified that supplier invoice

information is correct. • Receipts have been logged.• Invoice has been applied

correctly to the PO.

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• Approve & Next: Approve current and view next assigned invoice.

• Approve: Approve and manually navigate back to approval folder.

• Return to Shared Folder: Return invoice to the account folder so another approver can review/take action.

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Okay, so that was a straightforward example…

What about Matching Exception invoices?

• When reviewing Matching Exception invoices you’ll follow the same steps you just saw.

• However, these invoices may require some additional investigation to understand why the exception occurred and what you need to do.

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Filter by the Matching Exceptions workflow stop.

Filter invoices by match exception to group similar exceptions together.

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System highlights the match exception in

yellow

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Time to investigate!

Supplier invoicecorrect?

Invoice applied

correctly to PO?

Mismatch due to PO

setup?Approve.

No.Reject the invoice.

No.Contact AP.

No.Contact AP.

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Donuts on line 1

Coffee on line 2

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Supplier invoice is correct but was applied

incorrectly to PO.

Contact AP for support.

Coffee invoice line was applied to donut PO line.

This resulted in an over-quantity match exception.

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Let’s look at another

scenario, just donuts this time.

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Invoiced amount is correct but does not match PO setup.

Invoice is applied correctly and pay amount is correct, approve.

PO was setup with a quantity of 1 @ $60.00.

We were invoiced with a quantity of

5 @ $12.00.

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When to Force Match• Force matching is an option that’s only available in the

Matching Exceptions workflow stop.

• This action causes the PO to close once the invoice you’re approving reaches Completed status.

• If the invoice you’re approving is the last one, force match the invoice.

• Otherwise, uncheck the Force Match box!

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If a receipt is required due to matching rules

but is missing, Received column will

be highlighted.

Missing Receipt Match Exception

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When a receipt is missing……do not approve the invoice!

• Instead, ping whomever is responsible for logging receipts in your department and prompt them to log a receipt.

– This is usually the Invoice or PO Owner.

• Once proper receipts are logged the invoice will automatically move out of the Matching Exceptions workflow stop.

– This is assuming there are no other exceptions that require review. Assigned invoices still require approval.

“Proper receipts” means the amount invoiced is verified by the amount

receipted.

Ex: I ordered 10 jerseys and have received 5 so far. I would log a receipt

for 5 jerseys.

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Multiple approvals• Depending on the purchase order, invoices may route

to multiple workflow stops that require department action.

– Example: sub-awards, recurring POs with matching exceptions (rare).

• Approval is required at each workflow stop; you’ll need to approve the invoice again even if you approved it previously.

Rejecting invoices and requesting support

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When is it appropriate to reject an invoice?1. Mispaired invoice

– The invoice is associated with the wrong purchase order.

2. Incorrect supplier invoice

– The invoice lists the wrong services, quantities, items, etc.

3. Duplicate invoice

– An identical invoice has been submitted more than once.

Notify the supplier before you reject

their invoice.

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If a new invoice is needed……log a comment on the current invoice you’re rejecting and tag the AP team.

• Neither AP staff or the supplier are notified when an invoice is rejected.

• Corrected invoices should be submitted by the supplier to invoice@iu.edu.

– Digital Mailroom (DMR) will process the invoice.

– AP staff will watch the DMR queue (visible only to AP) for the new invoice and process appropriately.

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When is rejecting not appropriate?

Invoice is for items not yet received.Wait to act until items are received.

1Goods received but damaged.Contact the supplier and request a credit.

2Payment will be issued to the wrong address.Notify supplier that their profile needs to be updated.

3Invoice contains sales tax. Contact the supplier and request a credit.

4Invoice will be paid by wrong account. Complete a change request for next invoice.

5

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When do I contact AP?• The invoice image is correct but its information was

entered incorrectly in BUY.IU.

– AP staff may be able to correct miskeyed information.

– If they can’t, they may instruct you to reject the invoice so it can be manually reprocessed or approve the invoice through and submit a General Accounting Adjustment (GEC) after payment.

– In either case, get AP in the loop so they can review and advise on next steps.

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Wrap up & resources

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Resource recap• Completing the Tax Information

Section guide

• AP Invoice Notifications Workflow Stop presentation

• SOP-PURCH-19: BUY.IU Receiving

• SOP-PURCH-20: Using Force Match on BUY.IU Invoices

• Invoice Approval Flowcharts

• Comments in BUY.IU guide

• When to Reject or Cancel an Invoice guide

• Purchasing, P-Card, AP, and SDM support form

• Training team email: estc@iu.edu

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Office Hours• Attend via Zoom, come and go as you please.

• Bring questions related to the BUY.IU interface update, processes covered in these webinars, whatever!

• A member of the VPCFO Training & Communications Team will address your question.

• Sign up on our events calendar.

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Let us know how we did• Complete a two-minute Qualtrics survey.

• Feedback is anonymous (and very appreciated)!

• Link to the evaluation is in the chat or available here: https://go.iu.edu/44Gt

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Question & Answer