Skip to content

Best Practices

Follow these operational best practices to maintain purchasing budget controls, prevent vendor overbilling, and ensure smooth financial audits.

1. Strict 3-Way Matching Controls

  • Enforce Mandatory PO Matching: Never process a supplier invoice in Accounts Payable without linking it to an approved Purchase Order and verified Goods Received Note (GRN).
  • Establish Variance Tolerance Limits: Define strict percentage thresholds (e.g., maximum 1% price variance) above which invoice posting requires managerial approval.

2. Month-End GRNI Reconciliation

  • Audit Un-invoiced GRNs Monthly: Review outstanding Goods Received Not Invoiced (GRNI) records at month-end to identify shipped orders where supplier invoices are delayed.
  • Resolve Aged GRNI Accruals: Investigate GRNI balances older than 60 days to clear obsolete receiving records or request missing supplier billing.

3. Vendor Performance Monitoring

  • Track On-Time In-Full (OTIF) Metrics: Monitor supplier delivery reliability by comparing PO promised delivery dates against actual GRN receipt timestamps in the Purchase Report Applet.
  • Quality Rejection Logging: Record all damaged or non-conforming goods returns in the Purchase Return Applet to maintain supplier quality scorecards.