Purchase Invoice Commitments

When posting purchase invoices, for each invoice line processed, if the order line is related to a requisition, an actual transaction record is posted to the Commitments with a value equal to the reverse of the invoiced value of the line.

Note: If your system is set up to use Commitment Accounting Enhancements and your system is NOT set up to use Project Accounting (i.e.PR_INSTAL is set to NO), you can choose to update the commitment with the actual either when the invoice is raised or when it is posted. This is controlled by the system key POCOMMINVA.

For actuals, the general ledger codes are taken from the order line. If there is more than one general ledger code on a line, the invoice line value is apportioned across the general ledger codes on that line. Any rounding difference is added to the last transaction so that the total of the transactions is equal to the line value.

The outstanding commitment value on the commitment transaction record may also be updated. The outstanding commitment value on the actual transaction represents the outstanding value at the point when the actual transaction is posted and is set to the outstanding commitment value on the commitment record.

Invoicing by quantity

When invoicing by quantity, any outstanding commitment on the commitment transaction can be reduced as follows:

  • If the invoice line is fulfilled or if the total invoiced quantity is greater than or equal to the order quantity, the outstanding commitment will be reduced to zero.
  • If the total invoiced quantity is greater than the total received quantity, the outstanding commitment is set to a figure equal to the quantity not yet invoiced multiplied by the original price.

Invoicing by value

When invoicing by value, any outstanding commitment on the commitment transaction can be reduced as follows:

  • If the invoice line is fulfilled or if the total invoiced value is greater than or equal to the total commitment, the outstanding commitment will be reduced to zero.
  • If the total invoiced value is greater than the total received value, the outstanding commitment is to the value not yet invoiced (the commitment value minus the total invoiced value).

 

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