There are of course several checks performed on each invoice to prevent mistakes and fraud. This allows you to set up a contract and allow it to be processed without any additional checks. The following will explain the checks the system is completing.
The calculation to check if the invoice provided by the contractor fits with the details of the contract is:
invoice value + vat is less than or equal to (contract value + vat) / maximum number of invoices + tolerance level
(The vat rate is calculated based on the values entered by the contractor, and matched to accounting vat types for the managing agent)
With this in mind the criteria are:
- Contract must be approved
- Maximum number of invoices must not be exceeded
- Invoice work dates must be within the date range of the contract
- Invoice work dates must not be a duplicate of another invoice for the contract
- Contractor invoice numbers must not be duplicated
- Vat amount supplied by the contractor must match within a penny of a vat rate of the managing agent
- Auto approval calculation must be true
The date of the invoice is only used when applied invoices are linked to old contracts. If a contract has been renewed (or expired) any historically relevent invoice will be applied within 3 months of the renewal.
Once the auto approval criteria have been passed the invoice goes straight through to approved ready to be exported.
To see if your contract is set up for auto approval check the approval status
If your invoice fails to auto approve it will have a message in the invoice processing tool.