Invoice Settlement and Payment

Once the item or service is delivered, the buying firm will issue an authorization for payment to the supplier. Payment is then made through the organization’s accounts payable department. This is increasingly being accomplished through electronic means. Suppliers are more often being paid through electronic funds transfer (EFT), which is the automatic transfer of payment from the buyer’s bank account to the supplier’s bank account. More and more organizations are moving to integrated systems where all purchase orders, receipts, and payments are made electronically.