One Production Run. 14 Supplier Invoices. None of Them Match the BOM.

Your purchasing team issued 40 purchase orders this month across 14 suppliers. Materials arrived in partial shipments over 3 weeks. Some quantities were short. Some prices changed due to raw material fluctuations. Matching each supplier invoice against the correct PO and receiving record is a three-way match your AP team performs manually for every single line item.

Co-manufacturing relationships involve shared raw materials, shared labor allocation, and shared overhead. Tolling agreements specify who provides which materials and how conversion costs are split. One error in the yield calculation cascades through every invoice in the production run.

A shipment of raw materials fails incoming quality inspection. Your team rejects 15% of the order. The supplier invoiced for the full quantity. Now AP has to issue a debit memo, adjust the PO, recalculate the unit cost across the remaining materials, and notify production of the revised BOM cost. Each rejection creates hours of manual billing work.