[Execution] What do you do when invoices, receipts, and PO details do not line up?

Instruction: Calculate the mismatches and explain the hold, verification and authorization steps. Do not alter records just to make them match.

Context:

Fictional records, excluding tax and freight: PO 104 authorizes 100 units at $25; receipt R104 confirms 90 accepted units; invoice I104 bills 100 units at $26. All records use the same unit of measure. Policy requires an exact match; the buyer may investigate and request corrections but cannot approve price changes or release unmatched invoices. AP owns payment release; the purchasing manager approves PO changes. No additional receipt is confirmed.

Updated

Official answer available

Read the opening below, then unlock the full answer and practical guidance.

The PO total is $2,500. The invoice is $2,600. Supported accepted quantity at the approved price is 90 × $25 = $2,250. The $350 difference from invoice to that amount comprises ten unreceived units at $26 ($260) and a $1 excess price on the 90 received units ($90)...

Upgrade to view official answer

Related Questions