Payables lifecycle

Learn about the statuses that an incoming invoice goes through inside Monite.

The payables lifecycle

A payable represents the full range of obligations owed by a business to pay off a short-term debt to its creditors or suppliers for products and services that were purchased on credit.

Each payable is allocated with a status that indicates its progress throughout the payable lifecycle, from its creation until its payment.

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Complete overview of the payables lifecycle.

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The set of roles and approval conditions to change the payable status can be customized according to the business needs of the entity.

To learn more about customizing the payables workflow, please refer to Manage payable workflows and Monite script

Below, the statuses are explained:

Draft

Technical status tag: new

In this status, the payable is uploaded by the entity user (either via email or manually via API). The attributes of each payable are automatically captured by the OCR system. Then, entity users can review all details before validating the payable.

Once the entity user validates the payable, its status changes to approve_in_progress.

The entity users can also mark the payable as already paid.

Canceled

Technical status tag: canceled

The canceled payables are the ones that were not validated during the entity user review.

For example, if the entity user uploads the wrong file or the document is not compliant with regulations, this payable can be canceled before being sent to approval.

There is no possible status change when a payable is canceled.

Approval pending

Technical status tag: approve_in_progress

After the initial validation, the payable follows the approval policy defined for the entity. The following approval paths are enabled by default:

  • Paid documents: Under paid status, the payable no longer requires approval.
  • Immediate approval: Entity users with a specific role are enabled to select any payable and approve it immediately. The payable status changes to waiting_to_be_paid.
  • Approval flows: All payables that are neither paid nor approved follow the approval workflow:
    • On refusal, the payable status changes to rejected.
    • On approval, the payable status changes to waiting_to_be_paid.

In case the workflow started for the payable requires the approval of specific entity users, reminder notifications are sent by email containing information about the payable and the link to perform the approval.

Refused

Technical status tag: rejected

The payables that are refused during the approve_in_progress status. By adding a reason for the refusal, the entity user who uploaded the invoice knows what went wrong.

There is no possible status change when a payable is refused.

Approved

Technical status tag: waiting_to_be_paid

Once the approval process is finished, the invoice is ready to be paid. At this point, the user who uploaded the invoice is notified by an email containing information about the invoice to be paid and a link to the payment provider.

Entity users can pay invoices through Monite or through external payment channels. If paying through Monite, the invoice is moved to the paid status automatically. If an external payment channel is used, entity users must manually convert the invoice to the paid status.

Paid

Technical status tag: paid

Entity users can access all paid documents to view any details and export these documents for accounting reasons.

When a payable is successfully exported, its status changes to archived.

Archived

Technical status tag: archived

All financial documents must be stored within the accounting solution. By default, archived documents are stored in the system for two years. Depending on the legislation in your country, documents can be stored for five, seven, or a maximum of ten years.

There is no possible status change when payable is archived.


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