What are unmatched invoices in accounts payable?

Unmatched invoices in accounts payable refer to those that do not correspond with any purchase order or receiving report in the system. This situation typically arises when a vendor submits an invoice for goods or services rendered, but there are no records of an associated purchase order or receiving documentation that verifies the legitimacy and receipt of those goods or services.

Unmatched invoices can create challenges in the accounts payable process because they lack the necessary supporting documentation to validate payment. In a well-structured accounts payable process, each invoice should ideally be matched with a purchase order and a receiving report to confirm that the transaction is authorized and that the organization has received what it ordered. This matching process helps prevent errors and fraudulent activities and ensures that the payments made are valid and justified.

The other options describe different scenarios that do not accurately reflect the nature of unmatched invoices, such as invoices paid in advance, invoices that have been fully paid, or those requiring additional approval, which do not specifically relate to the correspondence with purchase orders or receiving reports.