Invoice Management

Process vendor invoices with automated three-way matching.

Overview

Waqti's invoice management provides:

• Automatic three-way matching (PO, GRN, Invoice)
• Variance detection and handling
• Payment scheduling and tracking
• VAT compliance (15%)

Invoice Lifecycle

Created → Matched → Approved → Scheduled → Paid → Closed

Creating an Invoice

From a Purchase Order

1. Open an approved PO with goods received
2. Click Create Invoice
3. Enter invoice details:

Field	Source
Vendor	Auto from PO
PO Reference	Auto from PO
Line Items	Auto from PO
Amount	Vendor invoice

Manual Invoice

1. Invoices → Create New
2. Select vendor
3. Link to PO (optional but recommended)
4. Enter line items
5. Upload invoice document
6. Submit

Invoice Fields

Field	Required	Description
Invoice Number	Yes	Vendor's invoice number
Invoice Date	Yes	Date on invoice
Due Date	Yes	Payment due date
PO Reference	Recommended	Link to PO for matching
Subtotal	Yes	Amount before VAT
VAT Amount	Yes	15% VAT
Total	Auto	Subtotal + VAT

Three-Way Matching

What Gets Matched

Document	Verification
Purchase Order	What was ordered (items, quantities, prices)
Goods Receipt	What was received (quantities, quality)
Invoice	What's being billed (amounts)

Match Process

Invoice Amount: 11,500 SAR
├── Check against PO: 11,500 SAR ✓
├── Check against GRN: 100 items received ✓
└── Result: MATCHED ✓

Match Statuses

Status	Description	Action
✅ Full Match	All documents align	Auto-approve or manual approve
⚠️ Within Tolerance	Variance < threshold	Review and approve
❌ Mismatch	Significant variance	Investigate and resolve
⏳ Pending GRN	No goods receipt yet	Wait for delivery

Tolerance Settings

Configure acceptable variances:

Setting	Default	Description
Price Variance	2%	Allowed price difference
Quantity Variance	0	Must match exactly
Total Variance	2%	Overall amount tolerance

Handling Variances

Price Variance

If invoice price differs from PO:

1. System flags variance
2. Finance reviews
3. Options:
   • Accept if within tolerance
   • Request credit note from vendor
   • Adjust PO via amendment

Quantity Variance

If invoice quantity differs from GRN:

1. System blocks approval
2. Options:
   • Correct invoice
   • Create additional GRN
   • Reject partial invoice

Common Resolution Steps

1. Open mismatched invoice
2. View Match Details tab
3. See specific variances
4. Add comments/justification
5. Route for exception approval

Invoice Approval

Approval Workflow

Invoices follow configured workflow:

Invoice Created 
→ Three-Way Match 
→ Match OK? 
  → Yes: Finance Approval 
  → No: Exception Approval 
→ Scheduled for Payment

Approving an Invoice

1. Go to Invoices → Pending Approval
2. Select invoice to review
3. Check:
   • Match status
   • Documents attached
   • Correct coding
4. Click Approve or Reject

Payment Processing

Payment Statuses

Status	Description
Pending	Not yet scheduled
Scheduled	In payment batch
Processing	Being processed
Paid	Payment completed
Failed	Payment failed

Scheduling Payments

1. Invoices → Payment Run
2. Select invoices to pay
3. Set payment date
4. Review totals
5. Submit batch

Payment Methods

Method	Description
Bank Transfer	Direct transfer to vendor
Check	Physical check
Credit Card	For supported vendors

VAT Handling

VAT Calculation

All invoices include 15% VAT:

Subtotal: 10,000.00 SAR
VAT (15%): 1,500.00 SAR
Total: 11,500.00 SAR

VAT Reports

Generate VAT reports for ZATCA:

1. Reports → VAT Report
2. Select period
3. Export for submission

Invoice Documents

Required Attachments

• Original invoice (PDF)
• Supporting documents
• Delivery notes (if applicable)

Document Storage

All documents:

• Stored securely
• Linked to invoice
• Available for audit
• Retained per policy

Credit Notes

Handle vendor credits:

Creating a Credit Note

1. Open original invoice
2. Click Create Credit Note
3. Enter:
   • Credit amount
   • Reason
   • Reference to original invoice
4. Submit

Credit Note Types

Type	Use Case
Price Adjustment	Vendor overcharged
Quantity Return	Goods returned
Quality Issue	Defective items
Service Credit	Service not provided

Reports

Available Invoice Reports

Report	Description
Invoice Aging	Days outstanding
Payment Schedule	Upcoming payments
VAT Summary	VAT by period
Vendor Analysis	Spend by vendor

Generating Reports

1. Reports → Invoices
2. Select report type
3. Apply filters
4. Generate and export

Best Practices

Process Promptly

Invoice within 5 days of receipt to:

• Maintain vendor relationships
• Capture early payment discounts
• Avoid payment delays

Verify Before Approving

Always check:

• Invoice matches PO terms
• Goods/services received
• Correct GL coding
• Valid VAT number

Document Everything

Attach all relevant documents:

• Original invoice
• Delivery notes
• Quality acceptance
• Communication with vendor

API Reference

This module is also available via the Waqti REST API. See Invoices API for programmatic access.

Related Topics

• Purchase Orders
• Vendor Management
• Integrations