Manage invoices submitted by the supplier.
The intent of this practice is to ensure that payment terms defined in the supplier agreement are met and that supplier compensation is linked to supplier progress, as defined in the supplier agreement. This practice covers invoices for any type of charge (e.g., one-time, monthly, deliverable-based, pass-through). It covers invoice errors or issues, changes to invoices, billing errors, and withholding disputed charges consistent with the terms and conditions of the supplier agreement. The acquirer should also ensure that appropriate financial and invoice management controls are in place.
When accepting supplier deliverables, final payment should not be made to the supplier until it has been certified that all supplier deliverables meet contractual requirements and all acceptance criteria have been satisfied. When acceptance criteria have not been satisfied, the provisions of the supplier agreement can be exercised.
Example Work Products
- Invoices approved for payment
Example Supplier Deliverables
1. Receive invoices.
2. Review invoices and related supporting material.
- Volumes for variable charges
- Pass through expenses
- Regulatory commitments related to payments
- Purchases made by the supplier on behalf of the acquirer
3. Resolve errors and manage issues with the supplier as required.
4. Approve invoices.