An invoice verification payment block is a tool used in accounts payable to halt payments until an invoice has been verified as legitimate and correct. For instance, a payment block can be implemented if an invoice is not properly coded, contains a discrepancy, or has missing documentation such as a purchase order.
Invoice verification payment blocks are relevant because they reduce the risk of fraudulent invoices being paid, ensure that suppliers are complying with purchase orders, and ultimately protect a company’s financial health. A key historical development in invoice verification payment blocks was the adoption of electronic invoicing, which allows for automated invoice verification and payment processing.
