COMPUTER-BASED MATCHING (STUDY OBJECTIVE 6)

The IT system used for purchasing and payments can be used to automate the document matching process. Automated matching is a computer software technique in which the computer software matches an invoice to its related purchase order and receiving report. Traditional systems rely on a person to do this matching, whereas an automated matching system does not. To institute an automated matching system, all of the relevant files must be available and constantly ready for processing. This means that purchase order and receiving files and records must be online or in databases. When an invoice is received from a vendor, an employee enters the details into the accounting system by completing fields in the invoice entry screen. The purchase order number usually appears on the invoice, and this number is entered as the invoice is entered. The system can then access the online purchase order and receiving files and check the match of items, quantities, and prices. The system will not approve an invoice for payment unless the items and quantities match with the packing slip, and the prices match the purchase order prices. This ensures that the vendor has billed for the correct items, quantities, and prices.

During the matching process, the system will also check for mathematical errors and ensure that there are no previous payments that would make this payment a duplicate one. Without such checking, duplicate invoices can be received and paid. ...

Get Accounting Information Systems: The Processes and Controls, 2nd Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.