Vendor Invoice Management Definition

Vendor Invoice Management is the process of receiving, validating, and paying invoices from vendors. This process usually includes four main steps:

1. Receiving vendor invoices: Vendor invoices can be received electronically or physically. If you receive invoices electronically, you will need to have a system in place to automatically import them into your accounting software. If you receive physical invoices, you will need to scan or manually enter them into your accounting software.

2. Validating vendor invoices: Once you have received the vendor invoices, you will need to validate them to make sure that they are accurate. This includes checking the prices, quantities, and other details against the purchase orders or contracts that you have with the vendor.

3. Paying vendor invoices: Once the vendor invoice has been validated, you will need to pay it according to the terms of the contract or purchase order. This may involve issuing a check, making an electronic payment, or setting up automatic payments.

4. Tracking payments: It is important to track all payments that are made to vendors so that you can keep track of your expenses and budget accordingly. You can do this by creating a separate vendor invoice account in your accounting software