Invoice Reconciliation
Invoice reconciliation is the process of comparing invoices against other records, such as purchase orders, receipts, or provider charges, to confirm they are accurate and complete. It catches discrepancies in quantity, price, and terms before invoices are paid or finalized.
Key Takeaways
- Matches invoices against source records to confirm accuracy.
- Catches wrong quantities, prices, and missing items.
- In CSP, it means matching the provider invoice to customer billing.
- Manual reconciliation does not scale as transaction volume grows.
How invoice reconciliation works
Each invoice line is matched against the corresponding record: the order, the delivery, or the supplier charge. Discrepancies are flagged and corrected before the invoice is finalized or paid. In CSP, the key match is between the provider invoice and what customers are billed.
Why it matters for Microsoft CSPs
For a CSP, the supplier invoice from Microsoft or a distributor and the customer invoice rarely line up on their own. Reconciling them is how partners confirm they are billing customers for what they were charged, which protects margin.
Invoice reconciliation vs CSP billing reconciliation
Invoice reconciliation is the general practice. CSP billing reconciliation is the Microsoft-specific version that also handles distributor files, NCE terms, and Azure usage.
How Work 365 supports this
Work 365 reconciles provider charges against subscriptions and usage automatically. See Billing and Invoicing.
Related terms: CSP Billing Reconciliation, Reconciliation-Based Billing, Provider Invoice, Revenue Leakage.
FAQ
What records are invoices reconciled against?
Purchase orders, receipts, contracts, and supplier or provider invoices.
How often should reconciliation run?
Every billing cycle, so discrepancies are caught before invoices are finalized.
