Before you can pay or create accounting entries for any invoice, the Invoice Validation process must validate the invoice.

Invoice Validation checks the matching, tax, period status, exchange rate, and distribution information for invoices you enter. It checks the supplier site to determine which invoice tolerance template to use. The Matching Payables Options tolerances take effect if there are no tolerances templates associated to each individual supplier site. If there are no tolerances templates associated to each individual supplier site, then the Matching Payables Options tolerances take effect. If an invoice tolerance template is specified, Invoice Validation will check against the specific invoice tolerances template stored in the Invoice Tolerances window to determine if the invoice falls within the defined tolerances and automatically applies holds to exception invoices. If an invoice has a hold, you can release the hold by correcting the exception that caused Invoice Validation to apply the hold by updating the invoice or the purchase order, or changing the invoice tolerances. Then resubmit Invoice Validation to release the hold. In the Invoice Holds tab, you can manually release certain invoice holds, even if you have not resolved the matching error condition.

Authorized users can always correct an invoice, even if you have validated, approved, paid, or created accounting entries for the invoice. See also: Adjusting Invoices.

You can identify all invoices that Payables has not yet reviewed with Invoice Validation by submitting the Invoice Register and selecting the Unvalidated Invoices Only parameter. You can review the validation status of an invoice online in the Invoice Overview window or the Invoices window.

Payables and Oracle Alert integrate to alert the appropriate accounts payable or purchasing staff when you or Payables place an invoice on hold. Oracle Alert also provides an integrated system of alerts, messages, and message distribution to focus attention on time-sensitive or critical information and streamline the validation process. Exception reporting in Oracle Alert is accomplished using either electronic mail or paper reports.

You can submit an invoice for validation in one of the following ways:

• Online by using either the Validate or the Validate Related Invoices check box in the Invoice Actions window. See: Submitting Online Validation for Invoices.

• Online by using the Validate button in the Invoice Batches window. See: Submitting Online Validation for Invoice Batches.

• Batch by submitting the Payables Invoice Validation program from the Submit Request window. See: Payables Invoice Validation Program.

The order of the Invoice Validation process and Invoice Approval Workflow Program is based on the Approval Processing Sequence Payables option. For example, you might want to validate before you approve if you enter invoices that require the Invoice Validation process to create tax distributions for you. If your approvers need to review tax details before they approve an invoice, then we recommend that you select an option that validates before approving. For more information on submitting invoices for approval, see Invoice Approval Workflow Overview.

When you attempt online Invoice Validation at the same time as funds checking, the system applies the Encumbrance Accounting Fail hold. If the Invoice Validation is ran again, the hold is removed and the invoice is validated. You could avoid performing this action by setting the following profiles.

You can set the following profiles as required:

• PSA: Budgetary Control Acquire Dual Lock Retry Count set to 10

• PSA: Budgetary Control Acquire Dual Lock Wait Interval set to 5

In this case, the process tries 10 times with an interval of 5 seconds between each try before exiting. If the values are not set, then the default value of zero assumed for both profiles. In this case, the process does not wait but exits if it cannot acquire a lock.

Validation Example

For example, Invoice Validation places three invoices on matching hold. The first invoice is on matching hold because the quantity billed exceeds the quantity received. The second invoice is on matching hold because the invoice price exceeds the purchase order shipment price. The third invoice is on matching hold because the quantity billed exceeds the quantity ordered.

Invoice 1. Your receiving department receives the goods and records the receipt information. Your invoice now matches the receipt and Payables releases the hold when you submit Invoice Validation.

Invoice 2. A supplier sends a credit to correct the amount due on a previous invoice. You match the credit to the purchase order as a price correction and associate it with the invoice during the match. The weighted average price of the invoice and credit memo now matches the purchase order shipment price. Payables releases the hold when you resubmit Invoice Validation. Use the Validate Related Invoices option in the Invoice Actions window to submit Invoice Validation for both the credit and the original invoice.

Invoice 3. You increase your tolerance levels using the Invoice Tolerances window. Your invoice now matches your receipt and purchase order within your newly-defined tolerance levels and Payables releases the hold when you resubmit Invoice Validation.