The Goods Confirmation process as it relates to SIMBA
In eBuy a true three-way matching process, where the Purchase Order (PO), Goods Confirmation (GR), and Invoice (IR) were matched before payment, did not exist. Instead, a two-way matching process where only the invoice was matched to the PO was the norm. In eBuy, Purchasing AP entered invoices with the assumption that all of the goods were received and correct, as opposed to having this information verified by the end-user. The former process relied on the invoice/supplier to dictate what was received and what was needing payment, even if this information was not accurate.
This is changing with SIMBA as all invoices, with very few exceptions, will require a goods confirmation. Policy language will be updated to reflect this change, however, the clearest exemption from the goods confirmation step is catalog orders under $5k – which do not require a goods confirmation. Otherwise, you may assume a goods confirmation is needed for all orders.
New Goods Confirmation Process
The supplier invoice should not be used as the source of truth for performing the goods confirmation in Shop OnLion. Instead, the goods confirmation should be a validation of what was actually received (i.e. what was in the package when you opened it) vs. what the invoice indicates should have been received.
As things become more familiar and progress forward, most of the goods confirmations will, and should, be happening prior to the invoice being received at all.
- The individual performing the goods confirmation should be looking at the PO to see what was ordered, then comparing that information against what was actually received (PO/GR match).
- Once an invoice is received for payment, AP will compare the information on the invoice against the PO and the GR before entering the invoice for payment (PO/GR/IR match). NOTE: AP would only pay for the quantity that was actually received vs. what the invoice indicates we should have received.
Who can do a goods confirmation? The shopping cart creator, a team member, or a Goods Recipient.
Finally, and perhaps the biggest change, unlike the invoice confirmation step in eBuy, the goods confirmation step in SIMBA does not mean that payment will automatically be released for payment. Payments are made in accordance with the supplier payment terms.
ACME Supply Co submits an invoice against a purchase order, dated 7/16/2020. Payment Terms are NET 30. This means that based on the suppliers’ payment terms, we have 30 days to pay the net invoice. So, although we may enter the invoice into the system on 7/20/2020, it will not be scheduled for payment until a few days before the payment due date of 8/20/2020 (30 days after the invoice entry date).
If a supplier calls regarding payment, please indicate that the payment terms are used to schedule payments. Based on the invoice entry date, if payment terms are NET 30, the payment will be sent in time to be received by the invoice due date.
If for a particular order, payment terms need to be adjusted, please work with the Buyer working with your order to adjust the payment terms so that future invoices will use the new terms. Common payment terms are NET 30, NET 15 and NET 0 (pay immediately). Please note that NET 0 will be used for all payments to FI suppliers, which means payment will be processed when the Non-PO Invoice is approved by Accounting Operations.