1. Question – Why have we not received payment on a past-due invoice?

Answer- Common reasons for delayed payment include:

A. Reason: The invoice has not been received by AEP’s Accounts Payable Department.

Resolution:

1. AEP’s Accounts Payable Department will ask the vendor for a copy of the invoice.
2. Once the invoice has been matched with all appropriate back-up material (e.g. a receipt of goods, required approvals, etc.) the payment should be processed.

B. Reason: The invoice is missing information or contains inaccurate information.

Resolution:

1. AEP’s Accounts Payable Department will attempt to obtain missing information or correct the inaccurate information.
2. If attempts to gather the required information are not successful, the Accounts Payable Department may return the invoice to the vendor for clarification. See the invoice template and invoice requirements for more information.

C. Reason: The invoice price does not match the prenegotiated price on the Purchase Order.

Resolution:

1. AEP’s Accounts Payable Department will contact the appropriate AEP buyer to determine which price is accurate based on set blanket order pricing or vendor quotation.
2. If the Purchase Order price is accurate (and the invoiced amount is inaccurate), the invoice total will be adjusted to reflect Purchase Order pricing.
3. If the invoice amount is accurate (and the Purchase Order price is inaccurate), the payment will be issued for the amount specified on the invoice and the Purchase Order will be adjusted accordingly.

D. Reason: The invoice is not approved by an AEP representative.

Resolution:

1. If an invoice has been routed for an AEP representative’s approval but approval has not been obtained within a specified time frame, the invoice will be assigned to an Accounts Payable resolution team member for further investigation. NOTE: Every invoice should reference a Purchase Order Number or a Contract Number. If no Purchase Order Number or Contract Number is referenced on the invoice, the name of the individual who has ordered the merchandise should be provided to avoid delayed payment resulting from approver identification issues.

E. Reason: Issues when receiving goods, including:

1. Reason:The ordered material wasn’t delivered to the correct location.

Resolution:

a) AEP’s Accounts Payable Department will request that the vendor supply a proof of delivery.

b) Based on information provided on the proof of delivery, an Accounts Payable Representative will determine the location to which the material was delivered and provide that information to the receipting storeroom.

c) The receipting storeroom will verify the receipt of the goods and process a receipt, which will facilitate the payment process.

2. Reason: The quantity of goods received does not match the quantity of goods invoiced.

Resolution:

a) AEP’s Accounts Payable Department will contact the receiving storeroom for verification of the quantity received and perhaps request proof of delivery from vendor to justify the invoiced quantity.

b) If the invoiced quantity is inaccurate, the Accounts Payable department will authorize for payment only the amount associated with the correct amount of received goods.

c) If there was an error by the storeroom staff in receipting for the goods, the receipt of goods will be adjusted to reflect the correct amount and payment will be processed accordingly.

3. Reason: Delays in the routing of the packing list/shipping documents from outlying (remote) locations to the main inventory (receipting) location.

Resolution:

a) Because material is sometimes delivered directly to a job site instead of a receipting storeroom location, it is important that all invoices specifically outline the location to which the goods are shipped as well as the name of the AEP contact, if available. This will ensure that, if the necessary paperwork is not forwarded properly within AEP, the Accounts Payable Department can provide that information to the receipting storeroom.

b) The receipting storeroom will verify the receipt of goods at the “remote” location and process a receipt, which will facilitate the payment process.

4. Reason: The shipment is lost, damaged or incorrect.

Resolution:

a) If incorrect material is received, AEP’s storeroom will contact the vendor to obtain a Return Material Authorization (RMA) and return instructions.

b) If a shipment is lost or damaged and the shipping terms indicate the responsibility belongs to AEP, the storeroom will acknowledge the receipt of the goods and initiate a freight claim with the carrier. Once the storeroom has receipted for the goods, the payment process will continue. If responsibility belongs to the shipper, payment will be delayed until the replacement shipment is received.

5. Reason: Material is shipped against a cancelled or expired Purchase Order.

Resolution:

a) If an order has been placed against a canceled or expired Purchase Order, AEP’s Accounts Payable Department will contact the storeroom to determine whether the material will be accepted or returned to the vendor.

b) If the order is accepted, AEP’s Accounts Payable Department will either contact the appropriate AEP buyer to issue a replacement Purchase Order or will approve the payment of the invoice by treating it as a “non-PO” order (generally only done under specific circumstances). In either event, the payment to the vendor will be issued as appropriate.

c) If AEP determines that the shipment made against the invalid Purchase Order will not be accepted, the storeroom will request a Return Material Authorization from the vendor.

2. Question – Why did AEP deduct sales tax from its payment to our company?

Answer- In certain instances, AEP has received approval from the tax authority to pay sales tax directly to the specific state and/or locality. In such instances, AEP will not pay sales tax through its vendors (even though the invoice might include sales tax). See direct pay permit information.

3. Question – Why did AEP not pay the entire invoiced amount?

Answer– If the short pay was not related to AEP’s “direct pay” arrangement (as described in Question 2), the short payment could have been the result of a discrepancy between the invoiced price and the pre-arranged price outlined in the original Purchase Order. In that case, AEP’s Accounts Payable Department will contact the appropriate buyer to investigate the discrepancy. To resolve this issue, the buyer can either revise the Purchase Order to reflect the correct price or advise the Accounts Payable Department to short pay the invoice.

4. Question – Why did AEP deduct freight charges from the payment?

Answer– When the Purchase Order is initiated it outlines the Free On Board (FOB) and other shipping terms. If the vendor does not follow the terms outlined on the Purchase Order, AEP’s buyer may advise AEP’s Accounts Payable Department to deduct all non-approved freight charges from the payment. If a “collect” freight bill was already paid directly to the carrier by AEP for a particular shipment, the buyer also may advise the Accounts Payable Department to deduct from the payment any added freight charges for that shipment.

5. Question – Who can I contact to check the status of a payment?

Answer– All telephone inquiries should be directed to AEP’s Accounts Payable Call Center at (330) 438-7102. In the event the Call Center cannot provide payment information, the attendant will direct the inquiry to a team member for investigation and resolution.