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What is invoice processing? Invoice processing is the series of steps involved in receiving a supplier invoice, approving it, establishing a remittance date, paying the invoice, and then recording it in the general ledger. To show you how this works, lets go on a little trip, which involves these five critical stops along the way -- skip one and you could lose out on early-payment discounts or even get hit with late fees. First stop: Accounts payable. Upon receipt, the invoice taxis into your accounting system, where its recorded on the balance sheet as a liability. Your AP crew must make sure everything checks out.If you use 3-way matching, youll answer questions like: did we get what we ordered? Are we being charged properly for what we got? Does this all match the invoice weve received? If theres a discrepancy in the amounts charged versus the purchase order, the issue must be resolved before the invoice journey can continue. Once cleared for takeoff, the invoice is then routed
