Invoices for inventory items that are received into your system are electronically matched or “tagged” against the specific inventory receiving or vendor shipment records they are associated with during accounts payable invoice entry. This feature allows you to validate the invoice as it is being entered and also allows you to permanently tie the transactions to each other for later lookup and reporting purposes.
The tagging process that is used during invoice entry also helps you to identify any price or quantity variances related to the purchase and receipt you are processing the invoice for, and to correct those variances before they affect other parts of the system (like your sales margins).
The process of matching vendor purchase order, receiving and accounts payable documents in the system is referred to as “Three Way Matching”. The open or un-tagged receipts that have not yet been matched to accounts payable invoices in the system are referred to as Unvouchered Inventory.
The three way matching process is explained in detail in a later section of this document.
Processing Purchase Order Deductions
When Inventory related accounts payable invoices are processed, the system automatically carries any deductions specified in the Purchase Order into the invoices that are processed for the purchase order. StreamV allows you to record up to five different purchase order deduction amounts in each purchase order, and to specify the GL account that each of these deductions should be charged to.
When the operator enters an AP invoice and specifies a specific purchase order that the invoice is associated with, the system automatically loads the deduction amounts from the PO into the accounts payable invoice entry program, and it automatically creates distribution lines for the invoice, based on the gl account assigned to each deduction.
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