When does a vendor open item get created during the procurement process?

A vendor open item is created during the invoice verification stage of the procurement process. This occurs when the company receives an invoice from the vendor after goods or services have been provided.

At this point, the system matches the invoice details with the corresponding purchase order and goods receipt. If everything aligns correctly, the invoice is posted, which generates an open item in the vendor's account. This open item represents the obligation to pay the vendor for the goods or services already received, creating a liability in the financial records.

The other stages mentioned do not lead to the creation of an open item in the vendor account. For instance, during the goods receipt, the system records the receipt of goods but does not affect the vendor's open item status until the invoice is processed. Similarly, payment processing would settle an existing open item rather than create one. Approving a purchase requisition initiates the procurement process but doesn’t create any open item until the invoice verification occurs.