How to check invoices against agreed supplier prices

Short answer

1. Keep the agreed unit price for each item in one list, ex GST.
2. Compare every invoice line to that list before you approve.
3. Send back any line that is higher, lower or not on the list.
4. In Pulsify, upload the list once and every line is checked for you.

Before you start

You need three things.

• The agreed prices. This is a quote, a price list from the supplier or an email that says what you will pay.
• The supplier invoice, with a unit price on each line.
• A place to keep the list. A spreadsheet works. One tab per supplier keeps it tidy.

Write each price ex GST. The Australian GST rate is 10%, so a tax-inclusive line of $110.00 is $100.00 ex GST.

The manual way in Xero

Xero has no place to store a supplier price list and compare it to bills. The closest thing is an item, so the manual check happens in a spreadsheet.

1. Keep your agreed prices in a spreadsheet with three columns: item code, description and unit price ex GST.
2. In Xero go to Business > Bills to pay and open the draft bill.
3. Read down the Unit Price column. For each line, find the item in your spreadsheet.
4. Compare the two prices. Mark any line that differs, even by a few cents.
5. If a line is off, leave the bill in draft. Ask the supplier for a corrected invoice or a credit note.
6. Approve the bill once the prices are right.

Limits of this method:

• You do it line by line, by eye.
• It is slow on a 40-line invoice.
• Xero will not warn you when a price changes from last time.

The manual way in MYOB

1. Keep your agreed prices in a spreadsheet, ex GST.
2. Open the bill in MYOB (Purchases > Bills in MYOB Business, or Purchases > Enter Purchase in AccountRight).
3. Compare each line’s unit price to your spreadsheet.
4. Hold the bill and ask the supplier to fix any line that differs.

MYOB also has no supplier price list check against bills.

The Pulsify way

Pulsify stores the list and checks every line for you.

1. Click Database in the sidebar and open the Price Lists tab.
2. Click Upload price list. Choose the supplier and the CSV file. Click Download template if you need the format.
3. Tell Pulsify which columns hold the Item code, Item description and Unit price. Check the preview and click Save price list.
4. Open any invoice from that supplier. A line at a different price shows “Price list: $X each” under the unit price. A line that is not on the list shows “Not in price list”.
5. Fix the line or ask the supplier, then approve.

A price difference is a warning. It does not stop you approving. Pulsify matches on item code first and then on the exact description. It checks the price to the cent with no tolerance, higher or lower.

Worked example

Example Plumbing Supplies agreed these prices with you, ex GST:

Item code	Description	Agreed price
PVC-50	50mm PVC pipe, 3m	$18.40
ELB-50	50mm elbow	$2.95
CMT-1L	PVC cement, 1L	$14.20

Their invoice shows PVC-50 at $18.40, ELB-50 at $3.10 and CMT-1L at $14.20. Two lines match. The elbow is 15 cents over. You bought 200 elbows, so that is $30.00 ex GST on one line. Multiply that by the orders in a year and the cost is clear.

Common mistakes

• Comparing a GST-inclusive invoice price to an ex-GST list. Take the GST off first.
• Checking the total and not the lines. A higher price on one line can hide behind a lower quantity on another.
• Keeping the list in someone’s inbox. Put it somewhere the whole AP team can see.

Next step

Try an invoice and see your supplier prices checked line by line. Read the full supplier price lists guide for screenshots.