Verification Process

1. Invoice Verification

Match Against Approved Invoice: Ensure the payment aligns with an already approved invoice. No invoice, no payment.

Invoice Accuracy: Verify the amount, vendor details, and any applicable discounts (e.g., early payment discounts) before proceeding.

2. Budget and Cash Flow

Availability of Funds: Check if the payment aligns with the current cash flow and budget constraints.

Impact on Reserves: Assess whether the payment leaves adequate funds for other critical business needs.

3. Vendor Validation

Vendor Authenticity: Confirm the vendor's legitimacy and that the bank details match verified records.

New or Changed Vendor Details: Flag and double-check any recent updates to vendor banking information for potential fraud.

4. Compliance and Policies

Payment Policy Adherence: Ensure the payment complies with company payment policies, including payment terms and thresholds.

Regulatory Compliance: Verify that the payment aligns with legal or regulatory requirements, such as tax compliance or anti-money laundering (AML) policies.

5. Duplicate or Fraudulent Payments

Duplicate Check: Ensure the same invoice hasn’t already been paid.

Suspicious Activity: Look for anomalies, such as payments to unrecognized vendors or large, unexpected amounts.

6. Payment Timing

Due Date Consideration: Check if the payment is being made on or near the due date to optimize cash flow while avoiding late fees.

Early Payment Discounts: If applicable, confirm that early payment discounts are applied correctly.