We started to introduce you to exception management http://faoblog.com/processes-ap-exception-management/

As I mentioned that exception management may take different paths based on the type of transaction. The key transaction types that we will cover now are invoice processing, travel & entertainment and vendor management.

What are the various exception types that come into play? The list cannot ever be exhaustive, so I have covered some below:

We can classify exceptions in 2 groups.

  • Those that are not rule based
    • Illegible invoice
    • Need to rescan
    • Illegible fields
    • Invalid fields
    • Missing mandatory fields
    • Not Approved / Approval issues
    • Receipt not endorsed
    • No Audit Stamp
    • Main invoice missing
    • Missing pages
    • Amount mismatch
    • Material receipt not attached / uploaded
    • Coding issues – GL Codes / cost codes
    • Irrelevant  documents scanned
    • Date / description incorrect
    • Clarifications required
    • Issues of fully used open purchase order
    • Missing information / mandatory fields
    • Future dated invoice
    • Unapproved PO
    • Approvers limit not matching
  • Those that are rule based
    • Duplicate
    • PO Not found
    • PO Not matching
    • Invoice totals don’t match
    • Lines do not match
    • Address different
    • Vendor Not found
    • Vendor Name does not match
    • GL Code different
    • GL Code does not exist
    • QC / SQC show errors
    • Zero amount invoice
    • Match failure – two way / three way
    • Critical fields not on invoice
    • Vendor not set up

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