What is true about the Invoice Validation process?

The Invoice Validation process is crucial in ensuring that invoices are correct and meet the organization's standards before they are processed for payment. One key aspect of this process is that it creates tax lines and distributions as part of validation.

During the validation phase, the system reviews the details of the invoice such as quantities, pricing, and applicable taxes. This ensures that any necessary tax calculations are accurately applied and that the proper distribution of costs is set up according to the organization's accounting practices. By creating these tax lines and distributions as part of the validation process, the system helps maintain compliance with tax regulations and ensures that financial records are precise, which ultimately facilitates accurate reporting and smoother processing in the accounts payable workflow.

In contrast, the other options do not reflect the core functions of the Invoice Validation process as accurately as the correct choice does. For instance, while updating supplier balances might happen in broader accounting tasks, it is not a direct function of the validation step itself. Similarly, project information can be involved, so stating it is not part of the validation checks is misleading. Lastly, accounting entries being created in a finalized state is not an inherent part of the invoice validation; instead, entries typically undergo further processing once the validation checks are complete.