OpenReference

The activities associated with reconciling purchase orders, receipts and supplier invoices and approving supplier invoice payment. Reconciliation typically includes verifying delivered volumes, price, application of penalties or discounts and where applicable verification of grade or quality. This may include recording the actual costs (purchase price, transportation costs, engineering costs, specialized testing costs, etc) on the customer order for which the purchase was made.

For S1 and Source-to-Order contracts the verification typically is a standardized, repeatable process. S3 may require more extensive verification.

Discrepancies should be resolved before the Approve Payment process is considered completed.

Use Cases

• Project deliverables based invoices
• Verifying and approving monthly consolidated invoices (statements)

Notes

The actual disbursement of funds is a financial process. The Approve Payment process is an operational validation that the invoice conforms to agreed and/or actual deliveries and all delivery conditions are met. Source-to-Pay Three-Way Matching Two-Way Matching Four-Way Matching Accounts Payable

Hierarchy

ID	Name	Level	x
S3	Source-to-Engineering-Order	2	S3
S309	Approve Payment	3	S309

Term(s)

ID	Name	Clear	x
AP	Accounts Payable		AP
4WM	Four-Way Matching		4WM
S2P	Source-to-Pay		S2P
3WM	Three-Way Matching		3WM
2WM	Two-Way Matching		2WM

Workflow

From Input(s)	Process	Output(s) To
wf_process wf_arrow S306 Certificate Of Analysis D105 Invoice D205 Invoice D306 Invoice	S309	wf_arrow wf_process Verified Invoice FA

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