All Supplier Invoices Routed to Inventory

In order to do its job well, Inventory must receive all invoices from suppliers and verify receipt of merchandise in good condition and prices. Accounting must receive all invoices from Inventory in a timely manner to insure that they are paid on time. To ensure that this happens, the following is the correct routing of invoices received from suppliers.

If the original invoice is included in a package received by Shipping, it is routed with the merchandise to Inventory. Inventory verifies that they ordered the merchandise and that the price is correct by checking the pending POs. Initial to acknowledge the receipt of the merchandise and make a copy of the invoice. The merchandise and the copy of the invoice are placed in the Inventory pending box for pricing. The original invoice is routed directly to Accounting with the approved purchase order attached, so that it will be scheduled for prompt payment.

If the merchandise was ordered by a salesperson for a special order sale, the merchandise and invoice are still routed first to Inventory. Inventory verifies receipt of the merchandise listed on the invoice and the price, makes a copy of the invoice, and routes the original invoice to Accounting. Note on the invoice that it is a special order and who it was for and attach a copy of the deposit to the paperwork.

If goods are obtained on a memo, Inventory receives the memo slip and the merchandise. Inventory does not need to copy the memo slip and route it to Accounting. Accounting is responsible for paying all of our invoices; a memo is not an invoice yet. When the item is sold the memo slip can be turned into an invoice.

Some vendors want their memo slips to turn into invoices; others want to send an actual invoice to cover the memo slip. If the vendor wants us to pay off of a memo slip, then route the memo slip to Accounting with a note, “memo sold – pay immediately.” If the vendor wants to send us an actual invoice, hold onto the memo slip until you receive the invoice in the mail. Then you would simply attach the memo slip to the invoice and write on the invoice, “memo sold – pay immediately.”

Some companies send packing slips only with the merchandise and mail us the invoice. Verify receipt of the merchandise and attach the approved PO to the packing slip or note that it’s a special order and for who on the packing slip. Keep the packing slip until the invoice arrives in the mail. When the invoice arrives verify receipt of the merchandise from the packing slip you have held onto and the price listed. Then attach the packing slip/approved PO to the invoice and route it to Accounting.

Accounting must verify every invoice before it is paid either by:

1. an approved PO attached
2. note by Inventory that it’s a special order and for whom
3. a memo slip attached

IT IS VITAL THAT INVOICES ARE RECEIVED BY ACCOUNTING IN A TIMELY MANNER SO THAT THEY CAN BE PLANNED FOR AND PAID ON TIME! Under no circumstances should Inventory hold any invoice for more than one day before routing it to Accounting. This would also include any sold memo slips. This means that if invoices are received through the mail daily, Inventory must match them up daily and send them to Accounting.