Maintaining Invoice

This page allows you to create, modify or authorize a supplier order based invoice. Tell me more.

To create an invoice:

• Select the “Maintain Invoice” link under the “Supplier Order Based Invoice” business component.

The “Maintain Invoice” page appears.

• Enter the following in the “Invoice Information” group box:

Note: On entering the invoice number, if the invoice is an existing number and is in valid status for modification, the system displays all the invoice details.

• Click the “Clear” pushbutton alongside the “Invoice #” field to clear the contents entered and re-initialize the screen.  

The system displays the following in the “Invoice Information” group box:

The system displays the following field in the “EDI Information” group box:

•  Enter the following fields in the “EDI Information” group box:

The system displays the following field in the “EDI Information” group box:

• Enter the following in the “Invoice Information” group box:

Note: Ensure that the finance book for the order number is the same as the invoicing finance book.

The system displays the following in the “Invoice Information” group box:

•   Enter the following in the “Invoice Information” group box:

• Enter the following in the “Supplier Information” group box:

Note: The system displays all currencies mapped to “Payables Accounts” defined for the supplier account group of the supplier in the “Account Rule Definition” business component in the “Currency” field of the “Invoice Information” group box when the supplier code is specified and “Get Details” pushbutton is selected.

The system displays the following in the “Supplier Information” group box:

•  Enter the following in the “Supplier Information” group box:

The system displays the following in the “Supplier Information” group box:

• Enter the following in the “Supplier Information” group box:

• Select the “Part/Order Level T/C/D/ Information” tab page to view details of items and their related taxes, charges and discounts at the order level.

• Select the “Invoice Level “T/C/D Information” tab page to view details of taxes, charges and discounts of order based invoice at invoice level.

• Click the “Compute” pushbutton to calculate the total invoice amount.

The system displays the following in the “Invoice Value Details” group box.

• Enter the following in the “Payment Information” group box:

The system displays the following in the “Payment Information” group box:

•  Enter the following fields:

 The ‘Hold Pay’ value is defaulted based on the process parameter “Default Hold Pay in Maintain Invoice” set under the Business Process ‘Payable Management’ and Category ‘Supplier Order Based Invoice’ in the “Set Finance Process Parameters” activity of the “OU Parameter Setup” business component.

• If the process parameter is set as ‘0’, then the system defaults the value “No”.

• If the process parameter is set as ‘1’, then the system defaults the value “Yes”.

• If the process parameter is set as ‘2’, then the system leaves the field blank by default.

The system displays the following field in the “EDI Details” group box:

• Enter the following fields in the “EDI Details” group box:

The system displays the following field in the “EDI Details” group box:

• Enter the following in the “Action on Variance” group box:

• Enter the following fields in the "User Defined Details" group box:

• Click the “Save” pushbutton to save the modifications made.

•   Click “Save & Authorize” pushbutton to save the modifications made and authorize the invoice.

Note: Invoices having four-way purchase orders with goods / services pending cannot be authorized.

The system performs the following:

• Updates the status of the invoice as “Fully Adjusted” or “Partly Adjusted” on auto adjustment of the invoice.

• Creates a Single Currency Adjustment in Authorized status in the “Supplier Balance Adjustment”  business component as follows:

1. Adjusts the invoice with prepayment vouchers if the following conditions are true:

a. The option 'Basis for Auto Adjustment' in the “Set Function Defaults” activity of the current business component is set as "Order Specific Open Prepayments" .

b. The option “Default Auto Adjust in Maintain Invoice with” in the  “Set Function Defaults” activity of the current business component is set  as "Yes" for the invoice

c. For the order documents, Prepayment Vouchers exists in invoice currency in “Paid” status.

• Creates a Single Currency Adjustment in Authorized status in the “Supplier Balance Adjustment”  business component as follows:

2. Adjusts the invoice with Debit Documents if the following conditions are true:

a. The option 'Basis for Auto Adjustment' in the “Set Function Defaults” activity of the current business component is set as "All Open Debit Docs." .

b. The option “Default Auto Adjust in Maintain Invoice with” in the  “Set Function Defaults” activity of the current business component is set  as "Yes" for the invoice

• For ‘Service PO’ and ‘Adhoc PO’ on behalf of customer, if the company is a group company and the set option “Invoicing for Purchase on behalf of Dest. Company (Customer)” is set as ‘By Dest. Company’ in the “Maintain Organization Parameter” activity of the “Organization Setup” business component, then Order Based Invoice will be created in Destination Company for the Service and Adhoc Purchase Order created in Source company.

Variance Accounting for Direct Expense Head

Posting for Variance Accounting when the field “Post Rate Variance for Expenses to” is set as “Direct Expense Heads” in the “Set Function Details” activity of the current business component the system performs the following:

1. When the Invoice Amount < PO Amount:

a. Debits Supplier Control Account

b. Credits  Account Code (for the corresponding Usage from the Invoice)

c. Considers the Cost Center/Analysis Code/Sub Analysis Code from the Invoice.

2. When the Invoice Amount > PO Amount:

a. Credits  Account Code (for the corresponding Usage from the Invoice)

b. Debits Supplier Control Account

c. Considers the Cost Center/Analysis Code/Sub Analysis Code from the Invoice

Note: Ensure that the Invoice Amount is equal to the sum of “Materials”, “Resources” and “Others” breakups.

The system performs the following:

• Computes invoice amount as follows:

1. Invoice Amount = Invoice Quantity * Invoice Rate.

• Computes tax as follows:

Note: Invoices having four-way purchase orders with goods / services pending cannot be authorized.

• Saves the modifications and generates a new invoice based on the modifications made.

• Records invoices from orders for a line item only if they are from the same Ordering Point.

•   Click “Delete” pushbutton to delete an invoice.

•   Click the “Return” pushbutton to return the invoice  for modifications.

To retrieve and maintain an invoice:

• Enter the invoice number in the Invoice # field

• Press <Enter>

• Select “Save” pushbutton to save the modifications made to the invoice.

To authorize an invoice:

• Enter the invoice number in the Invoice # field

•  Press <Enter>

•  Select “Save & Authorize” pushbutton to save the modifications and authorize the invoice.

The system saves the modifications and authorizes the new invoice generated based on the modifications made.

The system performs the following:

• Updates the status of the invoice when the “Save Invoice” or the “Create and Authorize“ or ‘Delete’ or ‘Return invoice’ pushbutton is clicked at the bottom of the page.

• Converts the Invoice level taxes, charges, discounts and with-holding taxes into invoice currency. This is applicable, if the TCD currency specified in the “Invoice Level TCD Information” tab page is not in invoice currency.

• For tax values other than “actuals”, based on the rounding off factor, each of the tax types is rounded off. Example.

Financial Postings

• The system credits the total invoice amount in the “Supplier Payable” account.

• If the part type is “Part”, “Order level Tax” or “Order Charge”, the system debits the transaction amount in the “Supplier Suspense” account. The system posts the transaction for every individual line of the invoice.

• If the part type is “Order level Discount”, the system credits the transaction amount in the “Supplier Suspense” account. The system posts the transaction for every individual line of the invoice.

• The system calculates the exchange rate variance for the invoice. If the invoice value is lower (favorable variance), the system credits the variance amount in the “Exchange Variance” account. If the invoice value is greater, (unfavorable variance), the system debits the variance amount in the “Exchange Variance” account. . If the exchange rate variance is not equal to zero, the system debits the variance amount if it is within the account limit defined in the “Account Based Budget” business component.

• If the invoice quantity and the proposed quantity are different, the system calculates the quantity variance. If the invoiced quantity is greater, the system debits the variance quantity in the “Invoice Quantity Variance” account. If the invoiced quantity is less than zero, the system credits the variance quantity in the “Invoice Quantity Variance” account. If the invoice quantity variance is not equal to zero, the system debits the variance amount  should be within the account limit defined in the “Account Based Budget” business component.

• The system posts the variance amounts in the “FA Suspense Account” or the “CWIP Account” if the purchase order is of type “Capital”.

• If the invoice rate and the proposed rate (in invoice currency) are different, the system calculates the rate variance. The system posts the rate variance expense to the variance invoice account of the order line if the “Post Rate Variance for Expenses To” drop-down list box in the “Set Function Defaults activity of the current business component is set as “Invoice Price Variance’. If the “Post Rate Variance for Expenses To” drop-down list box is set as “Direct Expense Heads”, the system posts the rate variance expense to the respective expense account of the order line.

• If the invoice rate is greater, the system debits the variance quantity in the “Invoice Rate Variance” account. If the invoice rate is less, the system credits the variance quantity in the “Invoice Rate Variance” account. If the invoice rate variance is not equal to zero, the system debits the variance amount if it is within the account limit defined in the “Account Based Budget” business component.

• The system posts the variance amounts in the “FA Suspense Account” or the “CWIP Account” if the purchase order is of type “Capital”.

•  If the invoice rate and the proposed rate (in invoice currency) are different, the system calculates the rate variance. If the “Post Rate Variance for Expenses To” drop-down list box in the “Set Function Defaults activity of the current business component is set as “Invoice Price Variance’ the system posts the Variance to the Invoice rate variance account. If the “Post Rate Variance for Expenses To” drop-down list box is set as “Direct Expense Heads”, the system posts the rate variance expense to the respective expense account of the order line.

• If the Variance amount is positive (i.e. Invoice value > Proposed Value).the account code identified for the corresponding variance will be debited, if the variance amount is negative ( i.e. Invoice value <Proposed Value) the account code identified for the corresponding variance will be credited. The system posts the variance if the variance amount is within the account limit defined in the “Account Based Budget” business component.

• For 2 Way Purchase Orders (Service & Adhoc) with Receipt Recording option set as 'No GR' and the set option “Enable Automatic Accounting on behalf of Dest. Company (Customer)” is set as ‘Yes’, the Postings for the Purchase Order will get posted in the Destination Company based on the set option “Basis of Accounting in Destination Company (Customer)” set in the “Maintain Organization Parameter” activity of the “Organization Setup” business component.

Stock Correction for Invoice Rate Variance

Request for Stock correction of type ‘Value’ will be posted by the system for the rate variances in the invoice to account the variances to the stock account itself instead of the variance account, if the following conditions are satisfied.

• “Auto Generate Stock Correction for Invoice rate variance” drop-down list box in the “Set Function Defaults” activity of the current business component is set as “Yes”.

•  Invoice Category is selected as ‘Purchase Order’.

• The Receipt recording option for the Purchase Order is selected as “GR movement”.

Matching types can be classified as under:

• This activity allows you to match the invoice with the PO or GR based on the matching type and the tolerance type chosen in the Purchase order  Matching types can be classified  as under

• 1. 4 – way Matching at PO Level – where the invoice tolerance is checked at the total Accepted Quantity or Value of the purchase order line level  and not on the individual goods receipt, inspected quantity or value.

  2. 4 – way Matching at GR Level – where the tolerance is checked with the individual goods receipt, inspected quantity and amount and not on the purchase order quantity and amount  at PO line level.

  3.  2 – way matching  - Where the tolerance is checked with the PO line level.

Note: Two-way matching is not applicable for invoices of the exchange PO category.

Tolerance Type available  for Purchase Order  

• Value – If the tolerance type selected is value then the variance can be only on rate and no variance is allowed on quantity

• Quantity - If the tolerance type selected is ‘Quantity’  then the variance can be only on quantity and no variance is allowed on rate.

• Both - If the tolerance type selected is ‘Both’ then the variance can be either on quantity or on rate.

• None – If no tolerance is allowed then the tolerance type will be selected as ‘None’

• In addition to the tolerance set in the Purchase Order, Invoice level tolerance can be set in “Invoice Tolerance (%) for Auto Matching” in ‘Set Function Defaults’ activity of the current business component. This tolerance set in invoice is over and above the tolerance set in the Purchase Order.

• The Automatching tolerance can be applied on either on the value or on the rate based on the selection made in the “Invoice Tolerance for Auto Matching on” list box in ‘Set Function Defaults’ activity of the current business component.

Note: If PO tolerance is on both and automatch tolerance is set as Rate, then the automatch tolerance will act as a value.

 Working of the Matching logic in Invoice can be understood by the following example with a PO having Matching Type as ‘Four way at GR and Tolerance type as ‘Quantity’ and Automatch tolerance in Invoice is on ‘Value’.

Goods Receipt Details:

Invoice Details :

Invoice # 1 & 2 raised against the GR # 1 and Invoice Formula:# 3 raised against GR # 2

Allowed Variance Based on PO Tolerance:

Allowed Variance on Top of PO Tolerance Based on Automatch Tolerance  Percentage in Invoice

Matching of Repair Order / Loan Order Invoice

• In “Set Function Defaults” activity of the current business component if “Invoice Tolerance for automatching on” drop-down list box is set as “Rate” and if the invoice rate variance exceeds the RO / LO tolerance rate, invoice will be updated as “Automatched failed” status, else invoice will be updated as “Matched’ status.

• In “Set Function Defaults” activity of the current business component if “Invoice Tolerance for automatching on” drop-down list box is set as “Value” and if the invoice amount variance exceeds the RO / LO tolerance amount, invoice will be updated as “Automatched failed” status, else invoice will be updated as “Matched’ status.

• In “Set Function Defaults” activity of the current business component if “Invoice Tolerance for automatching on” drop-down list box is set as “None” and if the invoice amount exceeds the proposed amount  then, invoice will be updated as “Automatched failed” status, else invoice will be updated as “Matched’ status.

To proceed, carry out the following

•  Select the “Pay Schedule” link at the bottom of the page to view the details of the payment schedule.

• Select the “Upload Documents” link at the bottom of the page to upload documents.

Refer to the topic “Object Attachments” online help for more details.

• Select the “View Associated Doc. Attachments” at the bottom of the page to view information regarding the associated document attachments

Refer to the topic “Object Attachments” online help for more details.

• Select the “Invoice Summary” link at the bottom of the page to view the summary of the invoice.

• Select the “Accounting Information” link at the bottom of the page to view the account posting information.

• Select the “View Supplier Bank Information” link at the bottom of the page to view supplier bank details.

•  Select the “View Purchase Order” link at the bottom of the page to view the purchase order information.

•  Select the “View Repair Order” link at the bottom of the page to view the repair order information.

•  Select the “View Loan Order” link at the bottom of the page to view the loan order information.

• Select the “View Release Slip” link at the bottom of the page to view details of the release slip.

• Select the “View Billing Supplier Information” link at the bottom of the page to view billing supplier information.

• Select the “Maintain Tax Invoice” link at the bottom of the page to to record tax invoice details from the supplier.

The system displays the following:

Maintaining order based invoice - An overview

This page allows you to create, modify or authorize a supplier order based invoice. You can enter the invoice information like the code identifying the finance book in which the invoice details must be posted. You can enter the number identifying the invoice, if you have opted for the “Manual” numbering type. The system generates a unique invoice number if you do not opt for the “Manual” numbering. The invoice is categorized based on the type of order that has been raised and the availability of relevant business components in the installation.

You can enter the details of the supplier who has issued the invoice. You can also enter the details of the payment to be made to the supplier. This page also facilitates you to specify whether you want the invoice quantity and amount to be matched automatically with the corresponding document, based on the matching type set in the Order Document.

You can modify the quantity to be invoiced and the invoiced quantity for which payment must be made. The difference between the invoiced quantity and the proposed quantity would be booked as variance. You can modify the Invoice rate and the amount. You can also record your observations regarding the invoice line. The system recalculates the total invoice amount, subsequent to the modifications.

The system saves the invoice details and updates the status of the invoice as “Draft”, if the ‘Draft” drop-down list box is selected as ‘Yes”. The taxes, charges and discounts (TCDs) that are applicable for the parts that have been invoiced are calculated by the system and saved along with the invoice details.

The system matches the invoiced quantity and amount, based on the matching type and the tolerance percentages set in the order. If the matching succeeds with or without the auto match tolerance, the system updates the matching status as “Matched” and if the matching fails even after utilizing the auto match tolerance, the system updates the matching status as “Auto Matched Failed”.  Invoices that have failed the auto matching can be force matched using the tolerance set for force matching.

You can authorize invoices that have been matched. The system updates the status of the invoice as “Authorized”. The system also stores the login ID of the user and the system date along with the invoice details. The details of the authorized invoice cannot be further modified.

Prerequisites

• Defining function defaults in the “Set Function Defaults” activity of the “Supplier Order Based Invoice” business   component

•  Goods receipt to be available for invoicing through 4-way matching for purchase orders)

•  Repair receipt must be in “Inspected” status for repair order

•  Loan Order must be “Closed” status