The financial system carefully checks that the recorded goods match the purchase order and then marks the invoices for payment. When the goods are delivered to your customer, they check the invoice against the purchase order to ensure everything matches before making the final payment.
e-Invoicing: This is the process of sending and receiving invoices electronically, instead of using paper. It makes the billing process faster, more accurate, and easier to manage. Think of it as sending a digital bill that the recipient can pay online.
Order Line Match: When an invoice arrives, it’s checked against the original purchase order to ensure everything matches up such as the item descriptions, quantities, and prices. This process ensures that you’re billed correctly for what you actually ordered and received. It’s like double-checking your receipt to make sure you were charged the right amount for each item.
Cost Centers: These are specific parts of a company where costs are tracked separately. It helps the company see how much money is being spent in different areas, like departments or projects. Imagine each cost center as a separate piggy bank where you keep track of spending for different things.
Cost Distribution: This is how costs are divided and assigned to different cost centers. It ensures that each part of the company is only charged for the expenses it’s responsible for. It’s like splitting a dinner bill among friends based on what each person ordered.