Invoice Requirements

This sample invoice (PDF) is an example of an invoice that meets all of the needs of AEP’s Accounts Payable process. An invoice in this format should progress through AEP’s payment process in the most effective and timely manner.

We understand that suppliers have their own invoice format which may be difficult to modify, but the closer the invoice comes to including the information outlined in this sample, the quicker your invoice should be paid by AEP. The suggestions shown on the sample and in the definitions below are made with our unique requirements in mind.

To improve the efficiency of its invoice processing, AEP uses an Optical Character Recognition (OCR) scanner that turns hardcopy invoices into electronic documents. Once a digital copy has been created, the system locates specific information on the electronic invoice and transfers it to an electronic payment voucher, from which the actual payment is processed. Please note that when information on the hardcopy invoice is missing, illegible, or inaccurate the payment process can be significantly lengthened. The fields below marked with an asterisk (*) are the fields the OCR scanner reads and autopopulates.

Appendix A is a sample Purchase Order that can be referenced to better identify information that should be pulled from the Purchase Order to populate invoices sent to AEP for payment. Numbers such as “1” are used below to reference the place on the sample Purchase Order (Appendix A) that ties to the discussion within this document.

IMPORTANT NOTE: Vendors that process invoices via ERS. EDI or Ariba Network should NOT send paper invoices to AEP Accounts Payable. Doing so may cause unnecessary delays in processing your payment.

Field Description
Invoice & Date* Invoice Numbers are used to match invoices to specific payments.
The Date field is used to specify the date the invoice was created.
Bill To This information is provided on the Purchase Order and will, in most cases, reflect the current AEP Accounts Payable address. Third party billings may specify a different bill to address.
See field 1 on appendix A
Ship To If no PO number is provided at the time of order, the requestor’s name should be
provided to expedite approval for payment of the invoice.
See field 2 on appendix A
Account Number This is helpful information if A/P is required to contact the vendor.
P.O.Number* This field must contain the entire customer PO number. Nothing should be between the field title and the PO number itself (i.e.there should not be a line under the verbiage P.O.Number and the actual PO Number).
Omission of any part of the PO number may delay invoice processing and payment.
AEP s PO numbers consist of 9 or 13 digits —The first three (3)digits designate the paying business unit,followed by six (6) digits that designate the PO number. In addition, some orders may append a blanket release number, which consists of four (4) digits.
See field 3 on appendix A
Ship Date This field is used by A/P when it requires that the invoice be matched to a receipt.
Ship Via/FOB This information is used by AEP’s Procurement department to determine whether the PO shipping terms are being adhered to and whether accompanying freight charges should be paid.
See field 4 on appendix A
Pay Terms* Payment terms are designated on the Purchase Order. The supplier should contact an AEP buyer if unable to accept PO payment terms.
See field 5 on appendix A
Quantity A/P uses this information to match invoiced quantity to the quantity received and to determine whether items are on backorder.
See field 6 on appendix A
Description This information is used to determine exactly which items were received. It also can be used to ensure that the items received match those on the PO.
See field 7 on appendix A
Supplier Catalog ID A/P uses this information to match invoiced items to material received.
Customer
Catalog ID
A/P uses this information to match invoiced items to material received.
See field 8 on appendix A
Unit Price A/P and Procurement use this information to verify the accuracy of billing.
A/P uses this information to match invoiced items to material received.
See field 9 on appendix A
Amount This field reflects extended amount (quantity multiplied by the price) for a particular line item.
Subtotal If the value of the material received (based on AEP PO) does not match the amount in this field, payment processing will be delayed until buyer approves charges.
Sales Tax* AEP has “direct pay” permits in certain states, which allows AEP to pay sales tax directly to tax agencies (and not to AEP’s vendors). See appendix B for a list of direct pay permits. NOTE: AEP’s PO’s specify that invoices should be mailed to American Electric Power. The affiliated (AEP) company paying the invoice also is listed on the PO. It is this company’s (the affiliate’s) direct pay permit number that will appear on the PO, if applicable.
Other taxes should be referenced within the description field of the invoice and not included in the sales tax field.
See fields 10a & 10b on appendix A
Shipping & Handling* FOB terms are designated on the PO. If the PO terms do not allow for payment of added freight charges, this amount should not be included on invoice unless approved by buyer.
Other Charges These are charges that are not specified on PO such as pallet charges, excise tax,
etc. and may require buyer approval.
Total Due* This field contains the gross amount to be paid by AEP.
Remit To This is critical information that is entered on the voucher by A/P and will determine where check is mailed.