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 or 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.
Check out below a detailed explanation of the payable statuses and the payable approval process:
This is the initial status for all uploaded payables that have any of the essential fields set as
null during their creation. The essential fields are:
Apart from the essential fields, the following requirements are also mandatory:
- The payable must have at least one line item.
- The value of
line_items.tax, if set, must complement the
line_items.subtotaland match with the
- The sum of all
line_items.subtotalmust be equal to the payable’s
These line items requirements can be disabled in the partner's settings by calling
PATCH /settings passing the field
false (the default value is
enable_line_items is disabled, the fields
tax_amount of the
payable object become editable during its creation and update, as they will no longer be calculated/re-calculated based on line items.
It is possible to upload payables with any set of fields or even with all fields empty, but only after the payable is filled with all essential fields, its status is automatically changed to
All line items in the payable must be linked to the ledger accounts, i.e. each line item must have the
ledger_account_idfield specified. The ledger account ID can be obtained by making a
GETrequest to the
/ledger_accountsendpoint after the accounting integration has been set up.
Make sure that the accounting system has the same tax rate value (e.g. 18%) as described on each one of the tax values in all line items of the payable.
If the uploaded payable already contains all essential fields, its initial status is directly set to
new. Only payables in the
new status can be sent for approval.
Once the entity user validates the payable, the payable's status changes to
The entity users can also directly confirm the payable for payment from 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 for approval.
There is no possible status change when a payable is canceled.
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
paidstatus, 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
- Approval flows: All payables that are neither
approvedfollow the approval workflow:
- On refusal, the payable status changes to
- On approval, the payable status changes to
- On refusal, the payable status changes to
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.
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.
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 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
Payables can be marked as partially paid by setting the remaining
amount_paid with the partial payment value, in minor units.
Entity users can access all paid documents to view any details and export these documents for accounting reasons.
Before a payable is ready to be paid, somebody may be required to approve the operation. The approval processes empower you to seamlessly integrate approval workflows for your payables, ensuring smooth operations and compliance with your organization's policies. See Approval processes for details.
Updated 11 days ago