Suppliers' invoices are entered via the option Purchase Invoices (po_invoice_entry), either in batches ( is set to YES) or individually (POBATCH is set to NO), and lines are matched with individual purchase orders. Additional items can be applied to the purchase invoice as a whole (as opposed to individual orders).
This option is also used to enter credit notes.
Each purchase invoice is identified by a combination of the supplier's invoice number, the supplier's account number and an internal reference number. Thus, 2 or more invoices that have been given identical numbers by different suppliers can be processed without confusion. However, an invoice cannot be entered if an item with the same number already exists on the supplier's account in the Accounts Payable Open Item table.
The internal reference number can be either allocated manually by the operator or generated automatically. A separate reference number can be generated for invoices () and credit notes (). The format of the generated reference number can be defined in the system keys (invoices) and (credit notes), if required.
One purchase invoice can cover several purchase orders; likewise, a single purchase order might be fulfilled by several purchase invoices, or there can be one purchase invoice for one purchase order.
If you do not use batch invoicing, all invoices are recorded in the batch recorded in the system key .
If your system is set up to use , you cannot use the batch name PITEMP. If you attempt to use this batch name, a message is displayed informing you that this batch is restricted to template invoices only.
Each invoice is entered in two parts: header information and an unlimited number of detail lines consisting of products and services.
Purchase Invoice Header Information
The header information relates to the purchase invoice as a whole and includes:
- an optional secondary reference;
- the invoice date and due date (if different from the date normally calculated from the supplier's payment terms);
- the invoice status;
- the invoice value;
- a settlement discount amount (if the purchase invoice is to be settled by a remittance advice run in Accounts Payable).
- A factor and default factor, if your system is set up to use .
The settlement discount percentages and number of days can be amended. The analysis codes A, B and C from the Supplier table can also be amended if system keys or are set, and, the department codes, depending on the setting of the system key .
The effective date entered here is used to determine the financial period this invoice should be posted to. The effective date can either be validated against the current POP period or the Accounts Payable period depending on system key to make sure the transaction is being posted to the correct period.
The transaction short name ensures that the appropriate set of Accounts Payable control accounts are used when the invoice is posted to the General Ledger.
A payment status is copied to the invoice if your system is set up to use and the supplier has a Payment Status of P, H, or blank. You can change the Invoice payment status via the F4-Mark disputes action.
Supplier Payment Status |
Description |
Invoice Payment Status |
Description |
Blank |
Pay as per defaults |
Blank |
Pay as per defaults |
P |
Pay immediately |
P |
Pay immediately |
H |
Hold payment |
H |
Hold payment |
X |
No new invoices, or payments |
n/a |
Invoice entry prevented |
Y |
No new purchase orders |
Blank |
Pay as per defaults |
Z |
No payments and no new purchase orders |
n/a |
Invoice entry prevented |
The invoice due date is calculated using the payment terms defined in the payment method if your system is set up to use . The system key controls whether the first or last payment term is used to calculate the due date. Valid settings for this system key are FIRST or LAST.
Purchase Invoice Detail Lines
To record invoiced quantities and costs against specific purchase order lines the operator calls up in turn each order to which the invoice relates.
If a purchase order is invoiced in part only, the quantities invoiced are entered against the appropriate product and service lines. The invoiced cost is also entered if it differs from the expected cost on the order. Lines can be invoiced before all the goods have been received. However, only when all outstanding quantities have been delivered, and the product has been fully received and invoiced, is the line marked as C (complete). The completed date for this line is set to either the invoice date or the date the invoice is posted, i.e. the system date ().
If the GRN Required? checkbox is ticked on a purchase order line and the system key is in use, the system can prevent that order line from being invoiced before it has been receipted.
It is possible to add extra product or service lines to an invoice which cannot be matched to a particular purchase order. However, extra product lines must be matched to a purchase order detail line before the invoice can be authorised. The system key determines whether unmatched service lines are allowed in an invoice that is to be authorised:
- If set to YES, unmatched service lines are allowed.
- If set to NO, all service lines (excluding VAT) must be matched before the invoice can be authorised.
- If set to WARN, the operator is warned if there are any unmatched service lines and has the option of authorising the invoice or not.
Restrictions apply to the addition of 'held' or obsolete products to a purchase order or to the amending of held or obsolete products on an existing purchase order. These restrictions are controlled by the system keys and respectively in conjunction with the Held and Obsolete flags on the stock record.
Product lines can only be added to a purchase invoice if the product (via the warehouse part of the product code) is assigned to the branch warehouses assigned to the user if your system is set up to use .
Items that refer to the purchase invoice as a whole, such as VAT and carriage charges, are handled as services and are entered independently of any purchase order number.
Purchase invoice details can be reviewed and amended at any point until the batch is posted.
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