Process Invoice - A summary of the activity

This activity enables you to process an invoice for a customer order. Processing an invoice involves the following:

• Updating invoice details for customer orders: You can update invoice price details for parts consumed, resources, labor hours and other external services consumed by task/work order/package (aircraft maintenance execution). In addition it allows you to record taxes, charges and discounts. A prepayment or direct invoice can also be created using this activity.

• Routing invoice releases to the finance department

A customer order after approval is accomplished through aircraft maintenance execution or shop work execution. During the course of or subsequent to execution, the system automatically generates invoice releases for specific events associated with the customer order. Such events are referred to as invoice event; examples include task completion, task initiation and work completion. The system updates the accomplishment of these events in the “Customer Order - Services” business component.  The system automatically releases an invoice on completion of an invoice event and assigns invoice release # to the invoice. It also sets the Ready to Bill flag for the invoice release to “Yes”, if the event has fulfilled all the prerequisites for invoicing. You can process an invoice only if the Ready to Bill flag is “Yes” in this activity. Subsequent to invoice processing, the finance department prepares the final invoice (Customer Service Invoice) based on these invoice releases and dispatches them to the customer.

Invoice and payment terms are defined for specific sale type and pricing basis combinations, and the events to which these are applicable are defined in the contract and these are binding on the customer order.

Getting familiar with the pages inside

Prerequisites

• The customer service order must exist in Approved status.

• Rounding off of Quantity, Rates, Prices or Amounts and Exchange rates used for conversions must be defined in the “Set Rounding Off Methods” link in the “Set Parameters – Book Keeping” page of the “Company Parameter Setup” business component.

What can you do in this activity

• Create / update / regenerate invoice release  for customer orders

• Create Direct invoice for both  Regular and Prepayment  invoice types

• Evaluate invoice release readiness