Key Stakeholders, Controls, and Risks 

Designing a manual AR invoicing workflow in NetSuite requires more than following a standard template. It demands a thoughtful approach to ensure operational resiliency and strong financial controls. Involving key stakeholders, such as sales management, IT, and compliance, is essential. This collaboration helps create a process aligned with financial policies and operational goals. Each team plays a unique role: from IT configuring the system to sales and finance managers embedding necessary compliance checks and authority limits. Cross-functional collaboration across IT and business management is essential to ensure a strong workflow is implemented. 

Initiators & Approvers of AR Invoices

One of the most important elements in this process is clearly defining roles for both initiators and approvers. Initiators, often in finance or sales, create invoices using accurate data from sales orders, contracts, or fulfillment records. Department heads or senior finance and accounts receivable personnel, who act as Approvers, add a second layer of review to carefully vet each invoice before finalizing it. Separating duties is essential for reducing errors, preventing revenue manipulation, and minimizing customer disputes and fraud risks. Adding a Delegation of Authority (DoA) structure, with invoice approvals based on policy-defined value thresholds, offers further protection. This ensures high-value invoices are appropriately reviewed before going out the door. 

Setting appropriate DoA limits is key to maintaining control and accountability within the workflow. For example, low-value invoices might only need a manager’s approval, while higher-value invoices may require CFO oversight. Embedding these limits into a NetSuite automated workflow ensures that approvals follow the correct hierarchy without manual intervention. This not only strengthens financial oversight but also aligns with regulatory requirements like SOX, which demand strong controls over financial reporting processes. 

A poorly designed AR invoicing workflow exposes organizations to various risks, including delayed invoicing, cash flow problems, invoice errors, fraud, and revenue misstatements. Missteps in the process can result in financial discrepancies, frustrated customers, and even audit findings that tarnish a company’s reputation. To avoid these consequences, companies should ensure their customer invoicing workflow is secure, aligns with organizational policy, and undergoes regular review. They should also leverage automation where possible and encourage collaboration between departments to build a resilient invoicing system.