China order invoice matching before payment
Match each invoice line to the authorised purchase order and the evidence required at its agreed payment checkpoint. Reconcile shipment quantities, previous payments and credits, resolve exceptions and independently verify beneficiary changes before finance releases payment. Use this process with Cambridge China Bridge.
Define the matching record and approval owners
Create a matching register with an entry for each invoice line and payment checkpoint. Record the buying entity, contracted seller, purchase order reference and approved revision, product specification, unit of measure, quantity, currency, unit price and separately authorised charges. Attach the invoice reference and date, batch or shipment identity, supporting evidence and approval status. Ask for corrected documents where a line cannot be traced to the order.
Assign procurement to confirm order authority and changes, quality to approve inspection release, receiving staff to record arrival and condition, and finance to reconcile amounts and authorise payment. Separate preparation from approval, including supplier bank-detail maintenance. Set delegated approval limits and exception owners under your organisation's policy. Use the responsibility guide to allocate decisions.
Match evidence to the agreed payment checkpoint
Record the evidence required by the signed order at each agreed checkpoint. A payment before delivery needs its own authorised milestone evidence; do not create a goods receipt for goods that have not arrived. Where receipt or acceptance is a payment condition, keep that checkpoint open until the receiving or acceptance record is available. The table suggests evidence categories, rather than payment terms.
Link the inspection report to the identified lot and retain the authorised release decision, including any conditions still open. A report marked as passed does not itself authorise payment. Use the checks before paying the balance for the underlying goods and document checks.
| Checkpoint | Matching evidence | Release control |
|---|---|---|
| Order or production milestone | Authorised order, payment request and evidence of the agreed milestone | Procurement confirms the checkpoint and amount are authorised |
| Inspection or shipment release | Identified lot, inspection report, authorised release and shipment documents required by the order | Quality confirms the release scope and records unresolved conditions |
| Goods receipt or acceptance | Invoice lines, shipment identity, goods receipt and acceptance record where agreed | Receiving staff distinguish accepted, damaged, rejected and outstanding goods |
| Finance authorisation | Matched lines, previous payments, credits, exception approvals and verified beneficiary record | Finance approves the supported amount and records the payment reference |
Reconcile partial shipments and quantity differences
Allocate each shipment to the relevant purchase order lines and invoice lines. Keep ordered, released, shipped, received, accepted, invoiced and paid quantities or amounts in separate fields. Record the outstanding balance against each order line. Match units of measure explicitly, especially where invoices use cartons and receiving records use individual items. For repeat containers, agree a shared register through container programmes.
Compare the current claim with cumulative invoicing, payments and credits to prevent the same allocation being paid again. Record shortages, excess quantities, damage and rejected goods separately, with an owner and resolution. Request a corrected invoice or agreed credit where appropriate; do not silently change the supplier's invoice. Attach the distribution centre delivery evidence to the receipt record rather than treating a delivery signature as acceptance of every item.
Keep exceptions out of automatic payment
Flag missing order authority, price or currency differences, unsupported charges, duplicate invoice references, missing releases and disputed quantities. Check for duplicates across proforma requests, commercial invoices and replacement invoices, including documents with altered references. Put the affected claim on an internal payment hold and refer it to the named owner for resolution under the agreement. Record the reason, evidence, decision and approver.
An authorised exception should identify the affected lines, the amount approved, its justification and any condition still open. Check that partial authorisation is permitted by the agreement before releasing an undisputed amount. Keep the original documents and amendment history so a reviewer can reconstruct the decision. An internal hold should trigger prompt contract review, rather than an assumption that payment dates have changed.
Verify beneficiary changes independently
Check the beneficiary against the contracted seller and approved supplier record. For a proposed change, stop payment preparation and verify it through a contact route already held independently of the change request. Record who was contacted, how the details were confirmed and the supporting explanation. Have a separate authorised person approve the supplier-record change, then compare the payment file with that approved record.
Keep bank-detail approval separate from invoice approval: a correctly matched invoice can still direct payment to an unverified account. Follow the compromised supplier email guide where a request is suspicious. Retain the change request and verification record without treating an email reply in the same thread as independent confirmation.
Close the payment trail and separate VAT evidence
After authorisation, record the amount, currency, beneficiary, approver, payment reference and allocation to order lines. Reconcile the bank transaction and any supplier acknowledgement, then update paid and outstanding balances. If you buy through a UK company, establish which entity invoices your organisation and route factory evidence to support that seller's agreed checkpoints. Avoid recording the factory invoice and the UK seller's invoice as separate debts for the same purchase.
Keep payment approval and VAT recovery checks distinct. HMRC says VAT cannot be reclaimed using an invalid invoice, a proforma invoice, a statement or a delivery note. Ask finance to check the VAT evidence applicable to the transaction separately from the operational matching pack.
Frequently asked questions
Can we match a China invoice before goods arrive?
Yes, if the agreed checkpoint is before delivery. Match the authorised order, payment request and milestone evidence. Record goods receipt as outstanding; do not create a receipt to make the invoice pass.
How do we match invoices for partial shipments?
Allocate each shipment and invoice line to the order line. Track cumulative invoicing, payments, credits and outstanding quantities, keeping released, shipped, received and accepted quantities separate.
What if the invoice quantity differs from goods received?
Record the difference and supporting receipt evidence. Refer it to the exception owner for correction or an agreed resolution. Finance should release only the amount supported and authorised under the agreement.
Can finance approve changed supplier bank details by email?
Verify the change through an independently held contact route, retain the confirmation and obtain separate authorised approval of the supplier record. An email reply in the same thread is insufficient independent verification.