Which action helps ensure accurate processing of supplier payments?

• A. Approve and release payments without checks
• B. Reconcile invoices with POs and GRNs; verify quantities and prices; obtain approvals; retain records
• C. Process payments in bulk at year-end only
• D. Delete old invoices

Answer: (B)

Accurate supplier payments hinge on verifying that what was invoiced matches what was ordered and received, and that payment is properly authorized. Reconcile invoices with purchase orders and goods receipt notes to confirm that the item, quantity, and price on the invoice align with the original order and the goods actually received. This three-way check helps prevent paying for goods not ordered, for incorrect quantities, or at incorrect prices. Verifying quantities and prices directly tackles arithmetic or data-entry errors and price discrepancies before money moves out of the mouth of the organization. Obtaining the necessary approvals introduces proper authorization and segregation of duties, reducing the risk of fraudulent or erroneous payments slipping through. Retaining records of these steps ensures an audit trail for accountability and future reference.

Bypassing checks and releasing payments without verification undermines controls and opens the door to mistakes or fraud. Delaying payments to a bulk year-end process misses timely detection of issues and can mask errors, while deleting old invoices destroys critical documentation needed for audits and compliance.