A Deep Dive into Vendor Reconciliation:
In the world of service provision, vendor management can become intricate. It’s often the case that multiple services are ordered by different operators. With multiple moving pieces, it becomes important to have precision and visibility into the payments you make and the services you receive.
The Challenge:
Managing vendor invoices from different operational requests or work orders can get confusing to keep track of and manage. Without clear documentation of expenses, financial errors can impact your vendor relationships.
The Base Solution:
Base's Allocate feature simplifies reconciling vendor invoice amounts across multiple purchase requests. With precise allocation, you can easily track the services your team has incurred. Stay informed about the allocations in real-time to always be in the loop.
Step-by-step Guide to Reconciling AP Vendor Invoices:
1. Navigating the System:
Log into Base and head over to the Accounts Payable tab. Within this section, find the Invoices tab.
2. Initiating Allocation:
Next to each invoice, there's a dropdown icon. Click on it to reveal a set of options, one of which is Allocate. Selecting this will open the allocations modal.
3. Viewing Invoice Details:
In the allocations modal, you'll find details pertaining to the chosen invoice. Additionally, there will be information on Purchase Orders linked with the respective vendor or company.
4. Allocation Process:
To begin allocation, locate the Purchase Order you wish to reconcile with. Use the checkbox next to the Purchase Order to select it. Then, specify the amount in the To Allocate field.
5. History & Tracking:
For a more comprehensive view of your allocations, use the History tab within the modal. This will showcase all instances where the chosen invoice has been allocated.
6. Reversing Allocation (Un-allocation):
In cases where you wish to reverse an allocation, use the checkbox next to the Purchase Order line to select it. Upon selection, a red Un-allocate button will appear. Click on it to finalize the un-allocation.
The Bigger Picture:
Full Allocation:
Once an invoice is fully allocated, it’s systematically earmarked as complete. This aids in ensuring all services ordered have been accurately reconciled against the payments.
Handling Empty Allocations:
If there’s an unallocated amount left, there could be two possible courses of action:
Have your operations team edit the expense amount.
Opt to drop the accrual, thus balancing out the invoice.
💡 Pro Tip: Once you’ve successfully reconciled all your vendor invoices, consider either dropping any leftover accrual amounts from your Purchase Orders or pushing the vendor invoice to your preferred accounting system for seamless financial management.
Encountering challenges or require further clarification? Base’s support is always at your service. Dive deeper into our platform's capabilities and make vendor management a breeze.