Create Invoice – A summary of the activity

This activity allows you to create an invoice on a supplier, based on a purchase order. The purchase order specifies the number of parts, rate, delivery schedules and other commercial terms for the parts ordered. A receipt document is generated by the system when the parts are received based on the purchase order. Subsequently an invoice is raised on the supplier based on the purchase order and the receipt document. The quantity and the amount invoiced for the item is matched with the purchase order and the receipt document. The matching is done based on the matching type selected while creating a purchase order. The currency used for invoicing can be different from the purchase order.

This activity allows you to match the invoice in the following ways:  

• 4 – way Matching – In this type, the invoiced quantity and value are matched with the accepted quantity and value. This type is used when inspection of goods is required before making the payment. This type of matching can further be classified as

• 4 – way Matching at PO Level – where the invoice tolerance is checked at the total purchase order quantity and amount and not on the individual goods receipt inspected quantity and amount.

• 4 – way Matching at GR Level – where the tolerance is checked with the individual goods receipt inspected quantity and amount and not on the total purchase order quantity and amount .

The parts that are purchased must be valid in the inventory system. You can enter the tax, charge and discount (TCD) details of the invoice. The system calculates the payment schedule based on the pay term that has been defined for the invoice. If an electronic payment is applicable for the login company, you can also record details of the electronic payment that must be made to the supplier.

This activity also allows you to authorize the invoice during the creation process. The system updates the status of the authorized invoice as “Authorized”. The system also stores the login ID of the user and the system date along with the invoice details.

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