Reconciling the order, receipt and invoice

The invoice matches the order, but delivery is incomplete. Which amount should be examined before preparing payment?

In this fictional example, 100 kits are ordered at GNF 120,000 each, totalling GNF 12,000,000. The receiving officer records only 90 kits, while the invoice covers 100. Reconciling order, receipt and invoice reveals a difference of 10 kits, or GNF 1,200,000.

Under the assumption used here, the supplier accepts a credit note for GNF 1,200,000. The net payable becomes GNF 10,800,000. Accounting reconciles the documents; the decision-maker authorises payment separately from the order, after reviewing available funds.

The 10 undelivered kits remain tracked. Their commitment does not disappear when the invoice is corrected: delivery or cancellation must be documented.

Mistakes to avoid

Paying the ordered amount without checking receipt can cause an excessive payment. Describing the credit note as a price saving would also distort the analysis: here it prevents an undue payment. Matching documents alone does not prove the physical existence of inventory.

Recommended actions

Retain actual received quantities and reservations. Reconcile the three documents, resolve the discrepancy and obtain the appropriate correction document. Check the net amount due, authority and liquidity before payment. Reconcile the bank debit afterwards and separately track the outstanding order.

Are payments based on quantities actually received and a reconciled file?