Hubbell Policies

INVOICE MATCHING POLICY

English

Owner : Vice President, Controller

Last Review: 2018.06.08

FIN – 31

Department: Finance

POLICY

This policy is to stipulate that all purchases of Goods classified in a Direct material group will require a 3‐way match process and all purchases of Indirect Material Groups for both Goods and Services will require a 3‐way or 2‐way match per the attached matrix as seen in the Tangible_Intangible Material Group document. Those items processed through a 2‐way match items are subject to approval dependent on invoice threshold limits.

SCOPE

Hubbell, Inc. and its subsidiaries whose ERP is SAP. Any Hubbell businesses whose ERP is not SAP is required to document where they are in compliance with this policy, as well as where they are not in compliance. Any instance where the business unit that is not on SAP and is not in compliance is required to document a reason for non‐ compliance. This documentation must be approved by the Group’s Business Unit Controller. Invoices paid without a Purchase Order and/or Goods Receipt (i.e. only an invoice and not a 2‐way or 3‐way match) are outside the scope of this policy and must be in accordance with the Group’s SOX and business process documentation.

PURPOSE

Define the types of purchasing transactions requiring 2‐way (Purchase Order & Invoice) matching vs the types of invoices requiring 3‐way (Purchase Order, Goods Receipt, & Invoice) matching for guidance and standardization across the organization.

PROCEDURE

Note that this Procedure is designed specifically for businesses on SAP. Those businesses not on SAP should refer to the Invoice Matching Policy for details of required documentation to ensure compliance. All invoices are required to go through a verification process (e.g. goods received or services performed) prior to payment. Invoices automatically default to a specific verification process based on the material group designation. Two types of verification processes (“matching”) exist: 3 -way and 2-way.

I. 3-way Match Process

The procedure for 3-way matching is described below and related to all Direct Material Groups and Tangible Indirect Material Groups as referenced in Tangible_Intangible Material Groups document :

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