Invoice Payment Verification

Notification (IPVN)
Stakeholder Education
November 2013

2010 IBM Corporation

Agenda
Objectives
background
Definition
Roles and responsibilities
BoND requestor
CART creator
Manager

Testing
Call to Action

2010 IBM Corporation

Objectives
By the end of this session, attendees should understand

1)

Definition of Bond Cart System

2)

Categories of Good and Services requested through BoND

3)

What is Proof of Delivery

4) What is adequate proof of delivery for different categories of

services
5)

What are IPVNs - What is Negative Confirmation

6)

What to do after receiving IPVNs

7)

Retaining IPVNs - Send to Cart Creators / Team Room etc.

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What is IPVN?
IPVN Invoice Payment Verification Notification

Orders placed through BonD will be affected by the IPVN process

This notification is sent via email when Accounts Payable has received the
invoice
This notification is sent to the person listed as the Requestor on the BonD

It is critical that the IPVN be checked for accuracy and filed for audit purposes
(12 months) to ensure IBM does not pay for goods or services not received or
invoiced correctly

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Bond Requestors Responsibilities

Action Set 1
Once Accounts payable has received an invoice for goods or services from a
supplier, an IPVN is system generated and sent to the Requester

Ensure that the all details on the invoice is correct

Confirm goods received are satisfactory and PoD is attached based on category of
goods in the accompanying attachment
Confirm the amount of the vendor invoice referenced on the IPVN is correct, in-line
with PO terms and PO is valid for the period

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Bond Requestors Responsibilities (cont)

Action Set 2 (what does this mean?
If NO problem with goods received or invoice amount, then the following must occur
Retain all related documentation supporting purchase & invoice Hard &/or Soft copies
File the IPVN in Lotus Notes file folder for 12 full months
File all related backup ie packing slips, time sheets etc
Send all soft copies of IPVN and supporting documentation to respective BonD cart creators
for your country
If goods are NOT Received, or NOT received in satisfactory condition, OR the invoice amount
is incorrect then the following must occur
Notify Accounts Payable / BonD Cart Creator to ensure the invoice is not paid
File all correspondence in the IPVN folder for 12 full months
All Procedural instructions are included on the IPVN notification

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BonD Cart Creator Responsibilities

Review the IPVN Management Summary of purchases for your countries to ensure that all
IPVN notices were sent in by requesters
Confirm the purchases made
Confirm the amount of the vendor invoice referenced on the IPVN is correct
Confirm that bond requesters are following the IPVN process
File IPVN and supporting documents in IPVN team room for future reference. Please see
team room link below
Notes://d23dbm60/65257BCC003D6709/867962C7D68029F085256603006ADD59/95E0CD0
88301054941257C200042981D
Each IPVN, Invoice and accompanying documentation should be consolidated and filed as a
single zipped document and renamed with the invoice number
Please note that there is a folder for each country and there are folders for each month
For those invoices that are incorrect or the goods not received as ordered, ensure that your
requesters follow the Account Payable procedures and notify Accounts Payable to ensure the
invoice is not paid
All procedural instructions are included on the IPVN notification

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Manager Responsibilities
Receive the IPVN Management Summary of purchases for your countries
Confirm the purchases made
Randomly review compliance by asking your employee for a copy of the IPVN and
accompanying documentation

Periodically do a more formal review to confirm that all staff are compliant and will
be in a position to respond to audit sampling, for a period of 12 months from the
date of purchase or date of invoice
For those invoices that are incorrect or the goods not received as ordered, ensure
that your employees follow the Account Payable procedures and notify Accounts
Payable to ensure the invoice is not paid
All procedural instructions are included on the IPVN notification

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Compliance Testing
Done on a monthly basis to ensure process execution compliance
Risk based sample of 5% of total number or 10 items pulled from BDW
Sample is based on a variety of items ie. Dollar amount, Employee, division code, invoice
date, PO#, invoice number etc
The first notice with instructions is sent out giving a 3 day response time. If at that point, no
response is given or only a portion of the information requested is given, a second notification
is sent out. This notification is sent to the individual as well as 1st line management giving a 2
day response time. If at the end of this date, no response is given or only a portion of the
information is sent, a 3rd notification is sent out. This notification is sent to the individual as
well as 1st and 2nd line management, again, giving a 2 day response time.
Two forms of defects
1. Only a portion of the information requested has been provided
2. They have not filed the IPVN and supporting documentation for the full 12 months
Results are presented with YTD and monthly percentages with regards to defects and non
defects for each country
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Call to Action
What do we want managers to do?
Implement team processes to comply
Educate their respective teams
Support compliance testing

Review defects with employees

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Wrap up and References

1) Definition of Bond Cart System
2) Categories of Good and Services requested through BoND
3) What is Proof of Delivery
4) What is adequate proof of delivery for different categories of services
5) What are IPVNs - What is Negative Confirmation

6) What to do after receiving IPVNs

7) Retaining IPVNs - Send to Cart Creators / Team Room etc.

For additional information:

Link here
Contact here
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