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How Do We Check Wholesaler Invoices Against What We Ordered and Received?

Checking pharmacy wholesaler invoices by hand misses price changes, short deliveries and unpaid credits. We automate the match against orders and returns.

Updated 2 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Wholesaler invoices arrive daily from several suppliers, and checking them against orders, deliveries and returns is tedious enough that it often does not happen. We read the electronic invoices, match them line by line to what you ordered and received, and list only the differences for a person to chase.

Totes, delivery notes and a statement nobody reads

Two or three deliveries a day, from more than one wholesaler. Each tote comes with a delivery note, and the invoice follows electronically or on paper. At the end of the month a statement arrives listing everything, including credits for returns you sent back weeks ago, or not including them.

In theory someone checks each invoice against the order and the delivery. In practice the dispensary is busy, the delivery gets put away, and the invoice is filed. The statement is paid because checking it line by line would take a day.

Why errors slip through

The checking is hard because the information is in three places at three different times. The order was placed yesterday in a portal. The delivery arrived this morning in a tote. The invoice appears later, sometimes in a different format from the delivery note. Returns are sent back with a form and the credit may arrive in a later month.

Matching those by hand means holding a lot in your head. When a line was short-delivered but still invoiced, or a price moved since you last looked, or a return was never credited, it is easy to miss.

What unchecked invoices cost

Missed itemWhy it matters
Short deliveries invoiced in fullYou pay for stock you never received
Price changesA line quietly costs more and nobody notices
Returns not creditedCredits for damaged or wrong items never arrive
Duplicate invoicesThe same delivery billed twice across files
Wrong discountsAgreed terms not applied to the account

None of these is likely to be large on its own. Across several suppliers and hundreds of lines a month, they add up to a figure worth knowing.

Automatic matching with a short exceptions list

  1. Invoice capture from each wholesaler's electronic file or email, and from scanned paper invoices where a supplier still sends them, with the lines extracted into a standard format.
  2. Order matching against your order history, so each invoice line is paired with what was actually ordered.
  3. Delivery confirmation. A quick scan or tick-off when the tote is put away records what actually arrived, so short deliveries stand out.
  4. Price checks against the last price paid for each line and any agreed terms you give us, flagging changes above a threshold you choose.
  5. A returns tracker. Every return you send is logged, and the matching credit is expected. Anything uncredited after a set time appears on the list.
  6. An exceptions list, short and dated, with only the lines that need a phone call or email to the supplier. Your accounts system, whether Xero, QuickBooks, Sage or your accountant's, receives the checked invoices.

Month end without the guesswork

Most invoices match and need nothing. The few that do not are on a list with the reason: short, price change, duplicate, missing credit. Someone spends a short while chasing them rather than an afternoon searching. When the statement arrives, you already know which lines you disagree with.

The price history also becomes useful in its own right. You can see which lines have crept up and which supplier is cheaper for what.

Are your invoices getting checked?

  • Invoices from wholesalers are filed without being checked line by line
  • You are not sure every return has been credited
  • Short deliveries are noticed only when someone goes looking for the item
  • Price changes appear on invoices without anyone spotting them
  • Month-end statements are paid as they come

FAQ

Frequently asked questions

The questions readers ask us after this guide.

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Can you read invoices from every wholesaler?

Most send electronic invoices or data files. Where one only sends paper or PDF, we extract from that and check the results against a sample before relying on it.

Do we need to scan every tote?

Not necessarily. A quick confirmation of what arrived is enough, and some pharmacies only check the lines that were short or on quota.

Will this post to our accounts?

It can pass checked invoices to Xero, QuickBooks or Sage where those are used, or produce a file for your accountant.

What if the matching gets a line wrong?

Uncertain matches go to the exceptions list rather than being accepted. A person confirms them.

Keep reading

More on Problems We Solve

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