AP-C  Enter Purchase Order Invoices

Purpose of Program

Use this program to enter vendor invoices that pertain to purchase orders entered through the Purchase Orders module.

Before invoices can be entered through this program, items or services must first be received through PO-C  Receive Purchase Orders and, if received to inspection, bought off using PO-J-C  Enter Inspection Buyoffs.

The program lets you compare purchase order prices with your vendor invoice prices.  If purchase order prices are incorrect, they can be changed from within this program, and the inventory last cost and average cost will be updated if the items were purchased for stock and any job costs will be changed accordingly if the original PO receipt was to a work order.

Once all items on a purchase order are fully received and invoiced, the program will prompt to close the purchase order, which deletes the record from the open purchase order file and marks the receivers as closed in the history file.

This program will allow processing of items on multiple purchase orders from the same vendor on the same invoice.  However, if multi-currency processing is enabled, only purchase orders in the specified currency will be available for processing.  Similarly, if PO Tax groups is enabled, only purchase orders assigned to the specified tax group will be available for processing.

Multi-Currency Processing

If you have multi-currency processing enabled in IM-A  International Configuration, the purchase orders that get processed in this program can be coded for transacting in a foreign currency (source currency).  The currency code was assigned to the PO during purchase order entry.

That means that the vendor you are paying will be paid in the source currency specified in the purchase order.

General Ledger processing will be as follows.  The source currency's PO's Rec¡¦d not Invoiced account will be debited (in source currency) for the purchase order amount being paid.  Any freight will be converted to base currency at the current rate maintained in IM-C  Enter Currency Exchange Rates and will be debited to Freight-in expense.  Any sales tax will be converted to base currency at the current exchange rate and will be posted to your default Sales Tax account.  If a currency conversion was made for freight or sales tax, a balancing entry will be made to this currency¡¦s F/E Gain/Loss-Trxns account.

Purchase OrderDeposit Processing

If there are any deposits linked to POs selected, then AP-C will allow you to select the deposit, indicate how much of the deposit should be used on this invoice (in case there are partial receipts, you can use the deposit in separate payments).   You will also be asked whether the invoice amount entered is a gross amount or the net to be paid to the vendor after the deposits are applied.  You will then have the net invoice amount plus the deposit available to apply to lines.  When you save, the GL posting will be the total line amount debit to PO/RNI, Deposit amount credit AP Deposits, Net invoice amount credit AP and debit to tax and freight as usual.  Only the net invoice will pass to AP.

Field Explanations

VENDOR FIELDS

PO Number (Optional)

If the invoice is for a single PO, enter the PO Number to ensure the selection of the correct vendor and PO lines.

Code

The vendor code for the invoice.

Vendor Name

The name of the vendor on the purchase  order.  This is an information field only.

Telephone

The vendor telephone number.  This is an information field only.

Currency

The default currency for this vendor (if multi-currency processing is set to Y in IM-A  International Configuration ).  This field can be changed if this invoice should be processed in a different currency; however only purchase orders assigned to the currency specified will be available for processing.

Tax Group

The default tax authority for this vendor (if PO Tax Groups is set to Y in SD-C  Purchase Orders Defaults).  This field can be changed if this invoice should be processed to a different tax authority; however only purchase orders assigned to the Tax Group specified will be available for processing.

INVOICING FIELDS

Post COD or Invoice

You can enter a COD transaction, which will bypass Accounts Payable, create a manual check entry, and optionally print a check, or you can enter a vendor invoice, which goes to Accounts Payable for future payment.

Invoice Date

The date of the vendor invoice.  This will be the aging date used within Accounts Payable.  You will get a warning message if you enter a date not in the current calendar year.

GL Posting Date

This defaults to the current system date. If, for any reason, you wish to post the invoice to another date, you can override the default date.  This is the date that will post to the General Ledger and controls when the invoice will appear on the AP Aging.  It also controls what receipts will be available for processing for payments.  Only receipts dated on or prior to the GL Post date will be available to be invoiced.  You can not book the payable before receiving the items.  When AP-I  Print Aging is run, the age of the invoice is based on the Invoice Date but whether or not it is included on the aging as of a certain date is based on the GL Post date.  You will not be able to post to a closed period, to a date prior to the invoice date, and you will get a warning message if you enter a date not in the current calendar year.

Invoice Number

The vendor's invoice number.

Invoice Amount

The amount of the invoice to be distributed among PO line items.  It can either be entered as the invoice total including tax and freight or a subtotal amount excluding tax and freight.

Filter from PO#

The first PO that has items on this invoice

Thru PO#

The last PO that has items on this invoice (defaults to the Filter From PO#)

Check Number

The check number (COD only).

LINE ITEM FIELDS

PO #

The Purchase Order number of the item being processed.  This is a reference field.

Received By

The person who processed the receipt.  This is a reference field.

Item

The item number of the item or service.  This is an information field only.

Description

The description that accompanies the item number on the purchase order.  This is an information field only.

UM

The unit of measure of the item purchased.  This is an information field only.

Conv

The unit of measure conversion factor of the item purchased.  This is an information field only.

Disc%

The discount percentage, if a discount applies to the cost.  This is an information field only.

Qty

This is the amount actually being invoiced.  This is an entry field.  The default value is the quantity received against the line.  The program will not allow invoicing a quantity greater than the received quantity.

Price

The invoice unit cost.  The default value will be the line item cost from the purchase order, but it can be overridden if incorrect.  This will cause the inventory last cost, average cost, and any job costing to be properly corrected.

Extension

The extended value of the Invoice Qty multiplied by the unit cost (discounted as applicable).  You can enter the extension and the unit cost will be recalculated.

TOTAL FIELDS

Payment Terms

The payment terms code defaults to the terms code assigned to the first purchase order with lines selected for processing, but it can be changed, if desired.  The payment terms determine when the invoice is due for payment.

Invoice Amount

The invoice total before tax and freight are added.  This is an information field only.

Freight

The freight charge on the vendor invoice.  This is an entry field.

Tax

The amount of sales tax.  This will be automatically calculated if sales tax was specified on the purchase order, or you can manually enter a tax amount or override the calculated tax amount.

Total

The grand total of the vendor invoice, including the goods or services, sales tax, and freight.  This is an information field only.

Schedule Date

The date the invoice is scheduled to be paid, if you wish to enter something different than the due date per terms.

General Program Operation

If the invoice applies to only a single purchase order, enter the PO Number and the cursor will automatically enter the vendor, currency and tax information from the PO and advance to the COD/Invoice field.

If you do not have the purchase order number or the invoice includes multiple purchase orders, enter the vendor code that the invoice is from or select a vendor from the pop-up window by clicking on the Lookup button.  The vendor name and telephone number will automatically be displayed.

If multi-currency is enabled, the currency will default to the vendor default currency as specified in AP-A  Enter Vendors; you may change it if the invoice is in a different currency.  Only those purchase orders in the specified currency will be presented for processing.

If PO Sales Tax by tax groups is enabled, the tax group will default to the vendor default tax group as specified in AP-A  Enter Vendors; you may change it if the invoice is subject to a different tax jurisdiction.  Only those purchase orders assigned to the specified tax group will be presented for processing.

The cursor moves to the right side of the screen, where you are asked if this is a COD transaction or an AP invoice.

Next enter the date of the invoice.  This is the date that will be used for aging purposes.  The date you enter will repeat in the G/L Posting Date field where it can be changed if you want to post the transaction to a different period.  For example, you might receive a vendor invoice after a month is already closed.  The invoice date must  be entered as is for aging purposes, but you could post the entry to the current month for GL purposes.  When running AP-I  Print Aging, the age of the invoice is determined by the invoice date but whether or not it is included on an aging as of a given date is determined by the GL Post date.  For example, you receive an invoice dated October 27 on November 3.  If you enter the invoice with an invoice date of October 27 but a GL Post date of November 3 then an AP Aging printed as of October 31 will not include the invoice because you have not recognized receipt of it yet.  An AP Aging printed as of November 3 will include the invoice and it will already be considered 7 days old based on the invoice date.

Enter the Invoice number.  If it is an AP Invoice, enter the invoice amount.  If it is a COD, enter the check amount and check number, then select the bank account from the pop-up window.

Enter the from and thru range of purchase orders included on the invoice to limit the list of items that will be available for processing.

You are then presented with a window displaying the available receipts from this vendor.  The list is presented in PO Number order subsorted by receiver number but can be re-sorted in date order by clicking the Sort by Date button on the bottom of the screen.  Each receipt listed includes the receipt date, PO Number, Item number, Quantity received, price and extension.  Only receipts dated on or after the GL Post date entered and on purchase orders matching the currency and tax group entered (as applicable) will be available for processing.  If not all expected receivers are displayed, click the View All button to see all potential receipts displayed including Invoice Numbers and dates and any other indications why the receipt is not available to be invoiced.

Highlight a line and press <Enter> or click on it and you will be asked if you want to edit the line item prices & quantities.  If you indicate yes, the selected line will be presented in the editing area in the bottom area of the screen.  The cursor pauses at the Invoice Qty and Cost fields.  You can change these values to bring the purchase order quantities and costs into conformance with the vendor's invoice; however you can not enter an invoice to pay for a quantity greater than the quantity received.  If there are rounding differences between the system calculation and the vendor invoice, you can enter the extension and the program will divide by the quantity to arrive at a unit cost.   When this invoice entry is finally saved, any price differences will cause the last cost, and average cost to be updated, or, if the original PO receipt was to a work order, the job costs will be revised.

If you answer No to edit line item prices and quantities, the line will be tagged to be processed as is.  Once all desired lines have been selected, press Esc, F10 or click the Done button. If there is a balance of the invoice amount remaining, you will be asked if you want to apply the balance to tax and freight.  If you answer No to applying the balance to tax and freight, then you are asked if you want to cancel adding the invoice, as the entire invoice amount must be accounted for by line items, tax, and/or freight.  If yes, the cursor moves on to the Terms field where the payment terms of the first purchase order processed will be displayed.  This can be changed to agree with the payment terms on the vendor invoice.

Next, the cursor advances to the Freight field and finally the Tax.  The tax will be calculated based on the default percentage and taxable status of the lines in the PO or, if Track PO Taxes using tax groups is set to Y in SD-C  Purchase Orders Defaults, the tax will be calculated based on the appropriate tax group.  It can be overridden to match the invoice.  Once all information has been entered, you are asked if you want to post this invoice.  If you answer Y, the invoice will be saved and processed.  If N, you are returned back to the first screen to start over and nothing is saved.

When the invoice is saved, the vendor credit or invoice balances are updated, the transaction is posted to the General Ledger and Purchases Journal, and the PO line item quantities and dollars invoiced and received not invoiced are updated.  If it is an invoice transaction, the invoice is added to the AP transaction files; if it is a COD, it prompts whether to print the check, adds a check to the check register and records the check in the AP payment history file.  If the PO is received and invoiced in full, you will be prompted to close the PO.

Processing the return of parts to a vendor

If a parts are received to inventory, then rejected and returned to the vendor, the return needs to be processed through PO-C  Receive Purchase Orders as a negative quantity.  If the vendor sends you a separate debit memo for the returned parts, enter it as a negative invoice and select the negative quantity line(s) as any other invoice and save.  A credit for the amount will be available in accounts payable to net against other invoices the next time a check is processed for the vendor.

If a separate debit memo is not received, you can select the negative receipts along with positive receipts when entering a positive invoice to result in a reduced invoice amount.  Or if you have canceling positive and negative receipts, you can enter a zero dollar invoice to clear them against each other.  Whenever combining positive and negative receipts, you must select the negative receipts first, then apply them against the positive ones.  You can not combine positive and negative receipts to apply to a net negative invoice.  A negative invoice can have only negative receipts applied to it.

Reversing an Invoice

If a you enter an existing invoice number for a vendor, you will be prompted that the invoice already exists, do you want to reverse it?  If you respond Y then all lines on the invoice will be returned to RNI status, the invoice will be deleted, and reversing GL postings dated the same as the original GL Post Date will be made.  If the accounting period of the original invoice posting date is now closed, you will be so advised and no reversal will be processed.