OCS Accounts Payable

Accounts Payable Overview

The Accounts Payable system, with integral Document Matching, provides an efficient method of processing invoices and payments. All accounts (central or project) are verified during input as the system has built in integrated with the Statistical and Financial Ledger. The combination of Document Matching and Accounts Payable complements the Materials Management system by matching invoices with purchase orders and receiving documents to provide added control over the receipt of and payment for stock.


Payment Control

Accommodations are provided to separate check processing by user-defined value limits. Extended cash requirements report combines scheduled invoice payments with open orders from Purchasing (due date plus payment terms).


Vendor Control

Multiple companies can share the same vendor master record. One-time vendors can be temporarily added as miscellaneous vendors during invoice input. Details are maintained until the invoice is fully paid. Vendor master files may be retrieved by vendor code or vendor name. The system provides a browse for all vendors approximating the partial name if a portion of the name is input. Vendor terms, discounts, and default expense distribution are held in the master file to speed processing of invoices.


Supplier Invoices

Accounts Payable is an open item system with each transaction treated individually. Payments and credit memos can be issued for the entire invoice or for any portion of it. Supplier invoices are matched with the corresponding receiving document by the system, registering the invoices as paid or unpaid. The document matching function automatically manages the matching process for high volume users.


Financial Ledger Integration

A vendor invoice or credit memo may have any number of expense allocations. Each is verified against the chart of accounts or subsidiary ledger project account before being accepted. Expense allocations may be expressed as a statistical quantity with unit and rate. The system carries both the statistics and the extended value through the generated journal into the SFL.


Document Matching

A document matching facility is included in the system to automatically match supplier invoices and receipts so that the invoices can be approved easily for payment. Supplier invoices are grouped in batches and input into the system. They are then matched with receipts by delivery (including multiple purchase orders), by purchase order number, or by line items of a purchase order. Invoices are held in suspense until receipts are balanced.

The invoice is successfully matched when the net invoice value is equal to, or within, an allowable tolerance of the receipt value. Line item edits are available to change invoices for freight value or approved adjustments to purchase order line item price.

The system distinguishes between high and low value items for tolerance procedures. An absolute value may be set to control allowable tolerances for high value items. An allowable percentage variation may be set to control low value items. The allowable tolerance is always based on a variance from the invoice value regardless of the method used. Separate tolerances can be defined to monitor freight charges.

Balanced invoices are held for payment. Invoices that fail the tolerance tests require an Invoice Adjustment Advice (IAA) before approval. An IAA is a formal document sent to the vendor as notification of an invoice adjustment. Credit memos generated while the invoice is in suspense are handled by the system.


Automatic Matching

Supplier invoices can be automatically generated based on goods received from that supplier. Full audit and reconciliation provided.


Invoice Authorization

Each line on the invoice can be sent electronically to the appropriate person for authorization based upon variance and authorization limits.

Receipt Authorization

Invoices may be received for items not tagged as received in the system. Receipt of the items such as services may be done off site and not entered in the system. Receipt authorization can be sent electronically to the appropriate person for approval.

Invoice Authorization

Each line on the invoice can be sent electronically to the appropriate person for authorization based upon variance and authorization limits.

Invoices without a purchase order

Invoices for freight and utility etc generally don't have an associated purchase order. These invoices can be entered and directed electronically to the appropriate person for authorization.



Electronic fund transfer and reconciliation is provided.


Batch Controls

All transactions are input and edited on-line in batches, which must be balanced and listed prior to update. The batch can be recalled as many times as required for modification before it is updated.


Payment Selection

Several options or combinations are provided for selection of vendor invoices for payment. They include:

  • Due Date
  • Vendor
  • Invoice
  • Order
  • Invoice Type
  • Payment Type

A Cash Requirements Report is prepared for evaluation prior to committing system payments.


System and Manual Cheques

The system handles both system-generated and manual checks. Manual checks can be issued against outstanding invoices or expense allocations. Voided checks restore complete invoice detail.


Bank Statements

Bank statement activity and balance are entered under batch control. The system automatically generates ledger entries for bank charges. A list of presented and un-presented checks is provided.



The vendor inquiry program provides immediate access to three years of purchase history and allows for both historical (paid) and current (unpaid) invoices.



The system provides a variety of Standard Reports including:

  • Aged Trial Balance
  • Bank Transactions
  • Cash Requirements
  • Check Registers
  • Deliveries not invoiced
  • Invoice Batch Listings
  • Invoices Due for Payment
  • Invoices Held from Payment
  • Invoices Held in Suspense
  • Invoice Transfer Listing
  • Matched Invoices
  • Mismatched Invoices
  • Vendor Freight Summary
  • Vendor Purchase History

Additional reports and modifications to standard reports can be specified using the software tools provided with the system.


Improve Payables Efficiency

Improve the efficiency of the accounts payable department. Remove the constant invoice paper chase and reduce the time taken inputting and managing payment of invoices.

  • Electronic Authorization. All invoices are electronically authorized. All invoices are matched against purchase orders, contracts or other documents, where discrepancies exist (or documents do not exist) the invoice lines are automatically sent to the appropriate people for authorization. This removes the required of having paper invoices shuffled between departments getting appropriate authorizations.
  • Auto Matching. Pay vendors based upon goods and services received. Eliminate the entry of invoices completely for major vendors/suppliers. All relevant paper work is created such as recent created tax invoices.
  • EFT. EFT payments dramatically reduce the time wasted printing, preparing and mailing checks to vendors. Remittance advises can be automatically faxed or emailed to the vendor.
  • Payment Selections. Use the intuitive invoice payments function to simply select payment, review the cash requirements and make the payments either by EFT or check.


Complete Payables Management

  • Pay only authorized purchases
  • Manage vendor payments
  • Reduce time to payment
  • Take advantage of available discounts
  • Improve Cash Flow