Any Accountants in there? Can Some Accountant explain what is ment by Matching, Batching and Coding of Invoice
Hello Can you please tell me what is matching batching and coding. what does processing of invoices mean and how do you do them if it is in a Hotel industry. It would be great if you can give me a brief explanation of these works. Thank you.
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Answer 1 :
Ok I will try to answer this.First it depends of what type of invoice you are processing> The one from the suppliers or the one issued by the company you work for. Lets say you process the invoice from suppliers. Matching the invoice means to check the invoice against the purchase order/contract and the reception note. It is usually called a 3 way mathching. Initialy you order products or services, so you have a purchase order or a contract where you specify your product/services needed the guantity the price the delivery day etc etc. You send this purchase order to supplier and they send the goods. You make a receiving note/or note of confirmation for services. This purchase order together with receiving note is send to accountants who will wait for the invoice. Once invoice come the accountant make sure everything is on invoice was ordered and actually received. If mistakes you send the invoice back and announce the purchasing department to solve the issue with the suppplier. So this was in simple words the MATCHING. Once you match an invoice and no issues, you record it inthe system ....the software used by the company to process invoices. Some copmanies are also having the purces order and the receiot inthe system.. depends on how they organize the accountancy... Batching is in general the check performed by the system for the total amount of invoice ..but also for receits and other transaction done by the system. In simple words. Batching is an automatic check of the totals in a 2 way system.. and is done by the software. Coding an invoice it giving a specific number to an invoice. This number is given differently from country to country depending on legislation. So you may want to check it for your country. In my country ( somewhere in europe) this number of the invoice is given by a special institution and it is reglemented by low. Also coding can be an internal number given by the system to eah invoice processed ( either a supplier invoice or an invoice issued to a customer).. in this case the number is given automatically by the system in a sequential way. Please note that these are generic answers... in accountacy always depends on company, software used, legislations and regulation. Bu i hope i gave you a slight idea of what is all about.
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