Which document is commonly used to verify the items received and their costs with a supplier?

Which document is commonly used to verify the items received and their costs with a supplier?

• A. Invoice
• B. Purchase order
• C. Receiving report
• D. Packing slip

Answer: (A)

When goods arrive, you need a document that ties together what was delivered with what you’re being charged. The invoice serves this role, as it itemizes each billed item and its price, providing the financial claim from the supplier. The receiving process checks the actual delivery against the packing slip and the purchase order to confirm correct items and quantities, and then accounts payable uses the invoice to verify that those items and costs match what was ordered and received before paying. The packing slip shows what was shipped but not prices, the receiving report records quantities (and condition) but not costs, and the purchase order shows what was ordered but not what was billed. So the invoice is the document used to verify both items received and their costs.

When goods arrive, you need a document that ties together what was delivered with what you’re being charged. The invoice serves this role, as it itemizes each billed item and its price, providing the financial claim from the supplier. The receiving process checks the actual delivery against the packing slip and the purchase order to confirm correct items and quantities, and then accounts payable uses the invoice to verify that those items and costs match what was ordered and received before paying. The packing slip shows what was shipped but not prices, the receiving report records quantities (and condition) but not costs, and the purchase order shows what was ordered but not what was billed. So the invoice is the document used to verify both items received and their costs.