Final answer:
Preventing duplicate payment for the same service is known as invoice reconciliation. It involves comparing invoices with relevant documentation to identify discrepancies and duplications, ensuring accuracy in financial management.
Step-by-step explanation:
Preventing duplicate payment for the same service is known as invoice reconciliation. It is an important process in financial management that ensures accuracy and avoids overpaying or making duplicate payments.
Invoice reconciliation involves comparing invoices with relevant documentation such as purchase orders, contracts, and delivery receipts to identify any discrepancies or duplications. It also includes verifying the payment terms and making sure that payments are allocated appropriately.
For example, a company may receive multiple invoices for the same service from different vendors. Through invoice reconciliation, the company can identify and resolve any duplicate payments to avoid financial losses and maintain proper financial records.