Purchase Invoices




Purchase invoices generated within the Purchase Order Processing system are processed in 3 stages:

  1. Enter the purchase invoices – Suppliers' invoices are entered via the option Purchase Invoices (po_invoice_entry) either in batches or individually (POBATCH). Lines are matched with individual purchase orders. Additional items can be applied to the purchase invoice as a whole (as opposed to individual orders).
  2. Now post the purchase invoices – Invoices can either be posted via the option Purchase Invoices or via Purchase Invoice Batch Posting (po_invoice_posting). This updates the Purchase Order tables with the invoice details and generates a batch of Accounts Payable invoices – if you do not use batches, each Accounts Payable batch contains one invoice. Each invoice stores the General Ledger distribution lines derived from the original supplier's invoice.
  3. Update Accounts Payable – The invoices are posted either automatically or manually (POPLPOST/PLNLPOST) to the suppliers' accounts in the Accounts Payable Open Item table. The distributions are also posted to the General Ledger Account table and General Ledger transaction tables if the Accounts Payable and General Ledger are integrated.

Received orders can optionally be invoiced by individual location codes if your system is set up to use Consolidated Requisitions. The results are written to the Purchase Invoice Location Details table. The Purchase Order/Location Cross-reference table is also updated when the invoices are posted.

Orders that have been fully satisfied and invoiced remain on file until you run the option Remove Completed Orders (po_drop_orders) to delete them. You can run this program at any time, but it typically forms part of the period-end procedure.

Purchase Order Processing retains a full history of the invoiced purchase order lines. A comprehensive report is available which analyses purchases in any sequence based on supplier account number, purchase number, purchase invoice number, product or service code and up to three product analysis groups.













The commitment created by a requisition, if the purchase order for an invoice originated via a Requisition, is updated with the actual when the purchase invoice is posted if the system key POCOMMST is set to either NLCODE or FINAL. However, if your system is set up to use Commitment Accounting Enhancements and you do NOT use Project Accounting 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.

Purchase Invoice Entry

Suppliers' invoices are entered via the option Purchase Invoices (po_invoice_entry), either in batches (POBATCH 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 (PLLASTOURI) and credit notes (PLLASTOURC). The format of the generated reference number can be defined in the system keys PLOURIFORM (invoices) and PLOURCFORM (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 POIBATCH.

If your system is set up to use Accounts Payable Template Invoices, 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:

The settlement discount percentages and number of days can amended. The analysis codes A, B and C from the Supplier table can also be amended if system keys PLABCANAL or POINVABC are set, and, the department codes, depending on the setting of the system key PODEPTCODE.

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 POPLPER 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 AP and PO Invoice Payment Status 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 Commercial Papers Enhancements. The system key PLCPINDD 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 (POCOMPDATI).

If the GRN Required? checkbox is ticked on a purchase order line and the system key POINVREC 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 POUNMAUTH 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 STREPHELD and STREPOBS 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 Enhanced Warehouse Management.

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.














































Invoice Batches enquiry

The enquiry option Invoice Batches (po_batch_enquiry) allows you to enquire into a batch which has not yet been posted or to inspect a batch in full. You can only use this option if you enter purchase invoices in batches, i.e. POBATCH is set to YES.

You can also use this option to review or amend the individual invoices in the batch, authorise invoices or post batches.

This program automatically attempts to authorise invoices after you have finished viewing their details if you authorise invoices automatically (POAUTOAUTH). Similarly, this program automatically posts an invoice if you post invoices automatically following authorisation (POAUTOPOST).

Posting Purchase Invoices
You can post purchase invoices in the following ways:
  1. Invoices must be posted in batches if the system key POBATCH is set to YES. All the invoices in the batch must be authorised before the batch can be posted. Batches of invoices can either be posted via the option Purchase Invoices (po_invoice_entry) or via the option Purchase Invoice Batch Posting (po_invoice_posting).

    If this system key is set to NO, invoices must be posted individually via the option Purchase Invoices. However, an individual invoice must be authorised before it can be posted. You cannot post individual invoices via the option Purchase Invoice Batch Posting.

  2. Invoices can be posted automatically, immediately following authorisation if the system key POAUTOPOST is set to YES.

    If this system key is set to NO, invoices must be posted manually via the option Purchase Invoices.

The project is updated when you post the invoice if you specified a project code and expense code for a detail line on the purchase order.

For invoices producing commercial papers, either the Accepted or Unaccepted control account is credited, depending on whether the letter is created with a status of Accepted or Unaccepted.

The General Ledger posting codes updated are determined by the settings on the process control matrix set up for each payment type if your system is set up to use COP GL Posting Matrix.