Ariba’s buyer facing OnDemand solutions (Invoice Pro and P2P) include a standard capability to validate the inbound EFT / remittance information on a supplier invoice against the buyer maintained vendor master data. This helps reduce the risk for downstream payment problems and late, inaccurate payments to the wrong remmittance address/bank account. This functionality assists buyers, such as those in Europe, where the inbound invoice often serves as the mechanism to communicate the remittance/bank account changes. The resulting impact is that prior to September 2009, Ariba required additional maintenance and validation of remittance information on the buyer-side to support this process.
Buyers who chose to rely on their ERP only to (1) manage and maintain such remittance changes and (2) determine the remittance location or banking information, felt that the extra work to synchronize this information in Ariba’s OnDemand solution to be unnecessary and redundant.
In September 2009 in a service pack, Ariba introduced a new “ValidateRemittanceLocation” parameter which deactivates the standard validation described above. Buyers may now choose to (1) utilize their ERP’s ability to derive the supplier’s remittance location (2) ignore remittance changes or differences on inbound supplier invoices.
This feature includes the following benefits:
Please contact your Ariba representive if you are interested in implementing this feature.
Prior to September 2009 or now when the “ValidateRemittanceLocation” parameter is “On”, buyers need to select the appropriate remittance address when entering payer invoices in the Ariba OnDemand solutions as illustrated in the screen capture below.
Now when the “ValidateRemittanceLocation” is set to “Off”, buyers may enter paper invoices in the OnDemand solution without selecting a Remittance Location as illustrated in the screen captures below.