Vendor Central Invoicing and Payment Workflow

How invoicing generally works

After delivering goods against a purchase order, vendors submit an invoice to Amazon, either through the vendor portal or through electronic data interchange. Payment is made according to agreed terms, usually after the goods are received and the invoice is validated.

The key to speed is that the invoice, the PO and the receipt agree.

Match the PO precisely

Invoices should match the purchase order on product identifiers, quantities, unit costs and delivery locations. Small differences in price or quantity can cause an invoice to be held or rejected. If a PO has a pricing issue, resolve it before invoicing.

Invoice only what was received

Where possible, invoice quantities that match what Amazon actually received. Invoicing for more than was received is a common cause of disputes and short pays. Check receiving data before submitting.

Common causes of rejection

Typical reasons include incorrect cost prices, quantity mismatches, duplicate invoices, missing information and submitting to the wrong entity. Read rejection messages carefully, fix the cause and resubmit rather than repeating the same invoice.

• Cost price differs from the PO
• Quantity differs from received units
• Duplicate or late submission
• Incomplete invoice information

Reconcile remittances

When you are paid, reconcile the remittance advice with your invoices. Identify short payments and deductions and link each to a reason. Record unresolved items and follow up within the permitted period.

Manage cash flow

Track the age of receivables and compare payment timing with your obligations to suppliers. If payment terms strain cash, consider financing or adjusting production schedules. Forecast cash on the basis of realistic payment dates, not hopeful ones.

Build controls and ownership

Name an owner for invoicing and another for reconciliation. Use a monthly checklist: all POs invoiced, rejected invoices cleared, short pays investigated, aging reviewed. Document the process so a team member can cover if someone is absent.

A worked example

A vendor's invoices are repeatedly held because the unit cost differs from the PO by a small amount. Investigation shows that a price change was agreed verbally but never updated in the system. The vendor gets the change confirmed in writing, updates the cost and resubmits.

The vendor then adds a monthly check comparing agreed costs with active POs so the issue does not recur.

Common mistakes

Typical errors are invoicing before delivery is confirmed, resubmitting rejected invoices without fixing the cause and failing to reconcile remittances. Another is leaving unresolved short payments past the allowed window. Put calendar reminders on each stage of the cycle.

Your next three steps

Reduce invoice rejections.

• Check unit costs on open POs against your agreed costs.
• Invoice only quantities received.
• Reconcile every remittance and log short payments.

Key terms

A few terms used above, in plain language.

• Purchase order: Amazon's request to buy units.
• Remittance: the payment advice sent with a payment.
• Short pay: a payment lower than the invoice amount.