Approve Vendor Invoices

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Last updated: Dec 04, 2023 by Andres Toledo
4 min read

In this article you will learn about invoice’s status and how to approve vendor invoices.

Roles enabled to perform this action: Admin, Accounts Payable, Procurement Manager, and Procurement User.

You must enable the Allow Invoice Approval on Reconciliation Screens setting to allow users to approve vendor invoices.

Invoice Status

Invoices display their status in the system with two words. Here is every status and its description:

  • AP: Pending Approval by Procurement.

  • AA: Pending Approval by Accounting.

  • A: Approved.

  • ES: Sent to External System.

  • F: Failed.

  • S: Synchronized.

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Approve Vendor Invoices

Once a vendor uploads the invoice, you can review and approve it from the PO Reconciliation screen. To approve vendor invoices, do the following instructions:

Step one: Procurement Approval

When your company receives a vendor invoice, you will see these invoices with AP (Pending Approval by Procurement) status. To review and approve invoices, do the following instructions:

  1. Go to A/P and select PO Reconciliation.

  2. Search for the purchase order number to be reviewed and approved.

  3. Click on the invoice number.

  4. Review the invoice information.

  5. Click on the button in the Actions column and select Approve.

The invoice status will be updated to AA (Pending Approval by Accounting.) 

When the invoice and order totals, or the quantity received and confirmed, don’t match, the system will highlight the fields with red to indicate a discrepancy.

You can also see this discrepancy from the Purchase Order Details screen on this tab by going to "Actions" and clicking on the magnifying glass icon or Export a PO Reconciliation report to Excel.

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The system will highlight discrepancies between an order and an invoice with red.

Step two: Accounting Approval

If needed, the accounting user must review the invoice and approve or return it to procurement for review. The system will give the accounting user three options in the Actions column of the Invoice Upload window: Approve Payment, Return to Procurement and Print.

To approve an invoice, do the following instructions:

  1. Go to A/P and select PO Reconciliation.

  2. Search for the purchase order number to be reviewed and approved.

  3. Click on the invoice number.

  4. Review the invoice information.

  5. Click on the button in the Actions column and select Approve.

Once the Accounting department approves the invoice, the system will change the status to A. This is the last step, meaning the invoice's payment is ready to be processed.

The Accounting department will be given two last options: Cancel Payment, from the invoice Upload screen, and Print, from the Actions column in the PO Reconciliation screen. Image B

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Approve vendor invoices from the A/P - PO Reconciliation screen.

Send Approved Invoices to an External System

When the invoice has an A (Approved) status, the user can send it to the External Accounting System or Quickbooks, if the company has integrated it with Komet (from the Actions gray button). Once the invoice is approved in Komet, the user can proceed to process the payment in their accounting system.

Only invoices with an Approved status will be transferred to QuickBooks. Komet, on the Sent to External System On column within the PO Reconciliation tab, will display the information of the user who sent the invoice to Quickbooks in a tooltip.

Invoice Status Column. On this screen, users can select the columns to view in the PO Reconciliation screen by clicking on the gear icon next to the "Search" button, as shown below. 

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FAQs

When accounting Cancels a payment, the invoice status reverts to AA (Pending Approval by Accounting) to be reviewed again.

When a PO has a Synchronized (S), Sent to External System (ES), or Failed (F) status, and for any reason, it is necessary to return the PO to an Approved status (if something went wrong with the synchronization process, for example) the system allows to do that. Just click on the drop-down menu in the Actions column for that PO and click on Return to Approved.

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