What are the most common exceptions you'll encounter during invoice processing?

1 Missing or invalid data

One of the most common exceptions you'll encounter during invoice processing is missing or invalid data. This can happen when the invoice does not have all the required information, such as the invoice number, date, amount, vendor name, or purchase order number. It can also happen when the data is incorrect, such as a wrong currency, tax rate, or payment term. To avoid this exception, you should always check the invoice for completeness and accuracy before submitting it to the system. You should also follow the standard format and guidelines for your company and industry.

2 Duplicate invoices

Another common exception you'll encounter during invoice processing is duplicate invoices. This can happen when the vendor sends the same invoice twice, either by mistake or on purpose. It can also happen when the system generates multiple invoices for the same transaction, such as a partial payment or a credit note. To avoid this exception, you should always verify the invoice number and date before entering it to the system. You should also use a unique identifier for each invoice, such as a barcode or a QR code.

3 Mismatched invoices

A third common exception you'll encounter during invoice processing is mismatched invoices. This can happen when the invoice does not match the purchase order, the goods receipt, or the contract. For example, the invoice may have a different quantity, price, or description than the order or the delivery. It may also have additional charges, discounts, or fees that were not agreed upon. To avoid this exception, you should always compare the invoice with the relevant documents and confirm the terms and conditions with the vendor. You should also use a three-way or four-way matching process to ensure consistency and compliance.

4 Unauthorized invoices

A fourth common exception you'll encounter during invoice processing is unauthorized invoices. This can happen when the invoice is not approved by the appropriate person or department, such as the procurement manager, the budget owner, or the project leader. It can also happen when the invoice is fraudulent, such as a fake invoice from a scammer or a rogue vendor. To avoid this exception, you should always follow the approval workflow and authorization matrix for your company and role. You should also verify the identity and legitimacy of the vendor and the invoice.

5 Disputed invoices

A fifth common exception you'll encounter during invoice processing is disputed invoices. This can happen when the vendor or the customer disagrees with the invoice amount, quality, or service. For example, the vendor may claim that the invoice is overdue, underpaid, or incorrect. The customer may claim that the goods or services are defective, damaged, or unsatisfactory. To avoid this exception, you should always communicate clearly and professionally with the vendor and the customer. You should also document the evidence and the resolution of the dispute.

6 Blocked invoices

A sixth common exception you'll encounter during invoice processing is blocked invoices. This can happen when the invoice is not ready for payment, either because of a technical issue, a business rule, or a manual intervention. For example, the invoice may be blocked because of a system error, a budget limit, or a pending approval. To avoid this exception, you should always monitor the status and the progress of the invoice in the system. You should also resolve the issue or the reason for the blockage as soon as possible.