Understanding Invoice Processing

Effective management of invoice processing is fundamental to the accounts receivable department. Typically, you create an invoice before you receive payment from the customer. Most invoices are generated from other systems, such as the JD Edwards EnterpriseOne Sales Order Management system from Oracle. However, at times you have to enter and revise invoices for customers.

Invoice processing is one example of three-tier processing. All JD Edwards JD Edwards EnterpriseOne systems use three-tier processing to manage batches of transactions. The term three-tier refers to these standard steps:

1. Enter transactions, such as invoices, receipts, and drafts.

2. Review and approve transactions for posting.

3. Post transactions to the general ledger.

This diagram illustrates the concept of three-tier processing: