Non_PO related invoices need to be coded and approved by the original procurer. Previously this was an entirely manual process, with each invoice being posted via the internal mail from AP to the individual who codes the invoice, then returned to AP, then sent out to the procurer of the goods to authorise This process was not only time consuming but fraught with errors and the risk of invoices getting lost. IMS now routes each invoice to be coded and authorised by the correct individual. Some invoices are automatically sent by IMS and others are routed by the AP clerk If the system is not entirely confident of this selection, the AP user will initiate the distribution of the invoice to the procurer for authorisation. If they do not have the correct sign_off limit, IMS determines the appropriate individual to forward it to until final approval is achieved. Once the data has been captured from an invoice, it has been successfully matched to a PO or it has been approved by the business, it is posted automatically to the finance system for payment.
Although we know perfectly well what an invoice is, its technical definition is "a document that reflects the delivery of a product or the provision of services, along with the due date and the amount to be paid in consideration." All invoices, regardless of the way in which they are sent (whether on paper or in electronic format), must include a series of mandatory fields. Article 6 of Royal Decree number 1496, Spanish law, which regulates the content of an invoice, establishes these fields as: Invoice number. Delivery date. Sender's and recipient's legal name. Sender's and recipient's Tax ID number. Sender's and recipient's legal address. Transaction description (tax base). Tax rate. Tax amount. Date of service (if different from the delivery date)
Here's why: Approval for invoice factoring doesn't hinge on your company's credit history. Instead, it depends on the creditworthiness of your customers. Companies that purchase invoices will evaluate your customers based on their stability and payment track record. The invoice factoring company's main concern is determining how likely your customers will pay and how quickly. Apart from your customers meeting qualifications, your invoices must also pass certain criteria. There can't be any existing primary liens on your invoices, meaning no other company should have a claim on the payments once they arrive. This ensures that the company purchasing your invoices has a clear right to collect the funds in your place.