We are making prepayments to vendors based on a PPR form...

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Q. (cont.) Later, we receive invoices from requestors and process them in SAP, manually matching the PPR vouchers. The problem is, if the vendor sends two invoices for one PPR, my team cannot locate the PPR based on the invoice amount; or if the requestor forgot to update the PPR on the invoice copy, then the team is processing it as a fresh invoice and it's being paid twice.

In either case, there's the possibility of duplicate payments.

The PO is being matched to the PPR form and not the invoice. So during invoice processing, the team is checking the PO description and matching the invoice with the PPR voucher, but it's time consuming because of the volume.

What's the best practice here?

A. We understand PPR to mean pre-payment request. I shared your question with expert Judy Bicking. The issue here appears to be that you have two ways of making a down payment—PPR and invoice. These two processes are clashing, leading to errors, including duplicate payments.

Since the vendor does create an invoice (or could produce an invoice, as they need it for their accounts receivable), Judy suggests you do not use the PPR, but request the vendor to send the invoice, which you will match against the PO. (With today’s technology, an invoice can be sent within hours.)  

This would eliminate the duplicate payments and the inefficiency of AP trying to make the dual process work.

You could instead chose the PPR over an invoice, but it is more efficient and compliant to have the invoice, and the PPR alone does not eliminate the potential of duplicate payment.

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