Introduction
The Purchase Product Invoicing program allows you to enter Supplier Invoices unaccompanied by an Order. It is integrated with the following:
- Inventory Management system: Purchase Invoicing can be integrated either fully in the context of quantities management, or partially in the context of non-stocked goods and services. See Managing Item Master Records for more details.
- Purchase Approval system: See New Workflow Approval.
Using Non PO Invoices
Non PO Invoices can be used for:
- Standard expected expenses, such as electricity, rates, and rent.
- Small low value Items, such as Stationery and Refreshments. Instead, use the Batch Entry program without a preceding Purchase Order. See Creating Batch Purchase Invoices for more details. Note, that bypassing the Ordering (and Approval) process can add a security risk. If this is a concern, remove the Batch Invoicing option from your Menus (or severely restrict its use), requiring the use of the PI entry screen.
Pre-requisites
Before using Purchase Invoices, ensure the following are set up correctly:
See:
Purchase Item Invoice (4.2) - AIQ Academy
Creating Purchase Invoices (PO Process)
New Workflow Approval - New Look UI
Creating Purchase Invoices
Go to AP > New Item Invoice and follow the completion instructions below and save the invoice.
Header Details
In the Invoice Details tab, complete the following header fields where appropriate:
- Invoice No: This is the Supplier’s Invoice Number.
- Supplier: Select the Supplier from the dropdown. Their details will autofill in the appropriate fields. The system checks for duplicate Invoice Nos. from that Supplier. If they exist, you will receive a warning. However, this will not prevent you from using the Invoice.
- Invoice Date: The transaction date defaults to today’s date. Note that this date will place this invoice into the correct financial period. This is done automatically to ensure that the transactions go to the correct period.
- Match to Order (optional): If you want to match the Order to the Invoice for the selected supplier, enter the PO Number here. The field will show a list of Orders for this supplier with the Order No, Order Date and Gross Amount. Selecting the Order in this field will bring the line details from the Order.
- Order No, Order Date: (optional): This number is automatically loaded by the system when creating an invoice from an order. Alternatively, you can manually enter a purchase order reference.
- Expected Delivery Date: If this invoice does not relate to a specific order already entered on the system you can record the expected delivery date here. It defaults to today’s date but can be overwritten.
- Use ACC VAT (Tax) Code: Checking this box means that any items entered will use the account's default tax code instead of the product's tax code. For example if a particular product has a default tax code of 21%, but a particular Supplier is an overseas Supplier and is exempt from tax. This field can be modified to allow you to account for the difference. However, you can still override the rate on individual lines.
- BI Code (optional): These are used for reporting purposes. This defaults from an optional entry in the Supplier Master Record. A BI Code is a sub-division of the company. Some Supplier always supply from the same sub-division so you can have a default BI Code for all Invoice lines. If the Invoice will use several BI Codes, you don’t need to add a default here. However, if you use Purchase Invoice approval, you can only use one BI Code per Invoice.
- Supplier Area: You can use this field to analyse Supplier sales for example into various areas or groupings. This field is used in the Purchases Analysis data warehouse. This defaults from the Supplier Master Record but you can override it here.
- OCR Checked: Check this if the Invoice has arrived from a third-party OCR scanning tool. It indicates that the Invoice has been checked for correct General Ledger Codes and BI Codes. The flag is also available for selection on the Purchases Invoices listing grid.
- Billing Address: This is the address of the Supplier that this invoice relates to. This address is read from the Supplier record and can be changed at invoice level.
- Supplier Contact: This defaults to the Primary Contact from the Supplier Master Record. This can be modified for a specific invoice.
Line Details
To temporarily hide invoice details:
- Click Display Lines Only in the top right. Click again to restore.
- Click the Collapse Line icon at the start of each line to display/hide details.
To allow for quick data entry you can use keyboard shortcuts to navigate the invoice:
- TAB: Advances to the next cell in the grid
- TAB + SHIFT: Goes back to the previous cell in the grid
- ENTER: Advances to the next cell in the grid
- F6: Use to make a copy of the current line and insert a new line with the same details. This is a useful function if you are creating payment records with similar details, such as recording several Receipts to the same General Ledger account but with different cheque references.
- F8: Use to delete the current line. If this does not work, try FN+F8.
- Enter: Press the Enter key to add any new lines.
Complete the following line details:
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Item: Select the Item from the Item catalogue using the dropdown. If the item doesn't exist, click +Add New Item... to open the Item maintenance screen. Complete the details as necessary. It will now appear on your invoice where you can add quantities and other details. See Managing Item Master Records for full details.
- Description, GL Acc. No: These auto complete based on the item selected but can be overridden.
- BI Code: If you are using Extended Business Analysis then select a BI Code. If it defaulted from the Invoice Header, you can override it here if desired.
- Qty: Enter in the Quantity of Product invoiced by the Supplier.
- Unit Price: The Unit Price defaults from the Last Cost field on the Inventory Master Record. If the Supplier’s Invoice has a different Price, you can use that instead if acceptable.
- Net: This is calculated automatically based on the Unit Price.
- VAT: The VAT (Tax) Rate is either inherited from the Invoice Header (which in turn comes from the Supplier Master Record) or from the VAT (Tax) Rate associated with the Item master record. In both cases you can override it here if the Supplier’s Invoice differs.
- VAT Amt: This is calculated based on the VAT Code selected. It cannot be adjusted by more than 0.10 per VAT Code. Any VAT adjustments needed should be performed after entering all line items. See the section ‘Making VAT Adjustments’ for details.
- Line Total: This is automatically calculated. If it needs to be updated, double-click if the field and enter the new amount in the field that appears. The other figures will update accordingly.
- Discount: If there is a Discount Percentage on the Supplier Record, then this will be the default. You can either accept this Rate and Calculation or you can input a fixed amount in the Disc. Amount field and the system will calculate the percentage. If the Supplier hasn’t allowed Discount (or has given a different amount) and this is acceptable, then you can enter it in the “Disc. Amount” field. The VAT (Tax) and the Line total will then be recalculated.
- Line Note: You can add a Note to each Order Line.
Recording Extra Charges
If the extra charges are related to a particular line on the Invoice (e.g. duty, delivery, carriage, shipping, freight), add a new line with the same Item Code that the charge is associated with, add a quantity of 0.00, and put the extra charge under Net. This additional cost is used to calculate the Item's overall Average Cost.
Note the following in the footer:
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Exchange Rate: If the Supplier is a Foreign Currency Supplier, the Exchange Rate will appear. This will be used to calculate the base currency value of the invoice when posted. Line Totals take account of this rate. However, you can still override the foreign currency Price to match the Supplier’s Invoice on a per line basis.
- Sub Total, VAT Total, Total: In the case of foreign currency, the totals for both currencies will appear.
- Adjust VAT: See next section, ‘VAT Adjustment.'
- Cancel Invoice: Click to cancel unposted invoices.
- Submit/Re-Submit for Approval: These options will be available depending on workflow configuration. See New Workflow Approval for more details.
- Auto Debit: Click to create an auto debit for the following period.
- Duplicate: This creates a copy which you can save with a new number.
- Save: When finished, click Save. The PI will now appear in the listing grid for further management.
- Close: If you close without saving, your work will be lost.
Additional Details
Use the Additional Details tab to add optional information.
- Delivery Details: Add an extra recipient for this invoice.
- Ship Via: Add any of the shipping codes set up in Codes Maintenance.
- Discount: This displays the default discount associated with the Supplier. You can override it here if needed. This value can in turn be overridden on at line level in the Invoice details tab. If you make changes to the Supplier Master Record defaults, any prices and quantities recorded prior to modification would need to be re-entered to include this.
- Credit Limit: This displays the default discount associated with the Supplier.
- Account Balance: This auto completes and cannot be edited.
- Payment Method: This specifies the means by which this invoice will be settled by your company. If you select a payment method that has been set up as an 'online' payment method in the codes maintenance screen, then related invoices will be available to pay via Bulk Payments.
- Forecasted Payment Date: This is calculated (at the end of all Invoice Lines) based on your Company’s payment history with this Supplier. You can change this date using the dropdown. The system uses Cash Flow Forecasting to predict when this Invoice will be paid.
- Note Printed on Invoice: Record a note here that will be printed on the header of the invoice for Supplier to view.
Notes
In the Notes tab, you can enter internal Notes for the Supplier Invoice. These will not be visible on the Supplier's Invoice.
- Click Add New Note and enter the note.
- Click Save.
Making VAT Adjustments - BETA
It may be necessary to make VAT adjustments if an invoice's VAT was calculated using a different rounding method than our system. Such VAT differences can occur if the VAT was calculated from an odd NET amount. Our Adjust VAT feature allows you to update VAT amounts without impacting other financial figures.
VAT adjustments impact the GL as follows:
- The VAT Adjustments will be posted to the Purchases GL Code as part of the invoice VAT amount and can be included in the VAT Return.
- If a purchase item invoice with a VAT adjustment is auto-debited, the VAT adjustment amount is also automatically reversed in the corresponding debit note.
All adjustments will appear in reports and are logged for audit purposes.
Note
- This feature is not available for AUS locale.
- VAT Adjustments will not impact the assigned approval workflow or cause the invoice to go for reapproval.
Making a VAT Adjustment
- After entering all line details, click Adjust VAT.
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The screen will display a summary of the VAT Codes used in the invoice and their calculated VAT amounts. In the VAT Adjustment field, you can adjust each VAT Code total within +-10 cents. You will receive an error if the VAT adjustment results in a negative amount. The Adjusted VAT field will update accordingly.
- Click Save. The system will update the VAT total without impacting other figures. In the footer, the VAT Amt figure will update with an adjustment icon.
Amending Invoices with VAT Adjustments
There will be no impact on a VAT adjustment if any updates made to an invoice result in a VAT adjustment of ≤ €0.10 for a given tax code.
There will be an impact on a VAT adjustment if any updates made to an invoice result in a VAT adjustment of > €0.10 for a given tax code or if the tax code originally adjusted no longer exists on any invoice line. In this case, saving will be blocked until you re-adjust the VAT.
Managing Purchase Invoices
Filtering the Listing Grid
The listing grid lets you enter your search criteria in any of the column headers. The main filter defaults to Processed Invoices/Notes, but can be cleared by clicking Clear.
Invoice Status
The status in the invoice entry screen is generated automatically by the system.
- New: For a new invoice that has not been processed.
- Processed: When the invoice has been saved but not yet posted to the ledger. It is available to view as well as attach Documents and Notes. It has not yet been posted to the Supplier’s Account in the Creditors Ledger or to the General Ledger. However, Quantities and Costs have been updated in the Inventory Management system. If you delete Lines from the Invoice now, these Quantities will reverse.
- Posted: Means that the Supplier's (account has been updated, and the general ledger has been updated with the values for this invoice. Note that payments can only be made against posted invoices.
Posting Purchase Invoices
- Go to AP > Item Invoices.
- In the grid, find the Invoice.
- Under Post, tick the selected Invoices and then click Post Selected.
- The Invoice will now disappear from this Grid and will appear in the Supplier listing grid which you can access by clicking on the Balance field.
See:
Editing a Purchase Invoice
Invoices can be amended at any time prior to posting. They can also be cancelled by clicking Cancel Invoice. For more details, see Amending Transactions.
- Go to AP > Item Invoices.
- Find the invoice in the listing grid and open it.
- In the Purchase Invoice screen, you can do any of the following:
- Delete Lines. Note, if you made a VAT adjustment on this invoice, you will need to confirm the new VAT adjustment amount before processing.
- Add new Lines
- Change Quantities and Prices
- Add Line Notes
- Amend General Ledger Codes and BI Codes.
- Click Save.
Duplicating Purchase Invoices
- Go to AP > Item Invoices.
- Find the Invoice.
- Under Actions, go to Duplicate. Alternatively, click on the Invoice No. to open it, then click Duplicate.
- Give it a new Invoice No. and modify the Invoice as desired.
- Click Save.