A/P Invoices by Purchase Order

This program is available only with the "Two Step Method" of receiving inventory by activating the Inventory Received in Warehouse feature in the Company Inventory Parameters, and is useful if your firm uses Purchase Orders for ordering.
Instead of entering each inventory item from the invoice one at a time as outlined in A/P Invoices click on the ENTER BY P.O. button at the bottom of the A/P Invoices screen to list the items for invoicing per the Purchase Order.

Refer to A/P Daily / Weekly Procedures for a flow chart diagramming the A/P invoicing process.

Receive the inventory in the warehouse using Warehouse Receiving before the A/P invoice can be entered.
An Outstanding Receiving Report report can be printed from Outstanding Warehouse Receiving to determine which A/P invoices have not yet been entered for the received inventory.

Any Warehouse Receiving transactions that should not be invoiced for the supplier, can be closed using the Update action in the Outstanding Warehouse Receiving utility.
This can be useful to close negative quantity receiving's that were processed to return stock if the original order was never invoiced in Accounts Payable and so does not require a reversing invoice.

Note: Re-Rentals can only be entered by Purchase Order if a P.O./Contract link has been established for the re-rental as outlined in Contract/Purchase Order Link Overview.
Re-Rent inventory that was rented that did not use the P.O./Contract link feature, must be invoiced using A/P Invoices in order to designate the equipment as re-rental and to write the associated Re-Rental Transactions.

The prompts to enter the A/P invoice from the P.O. information, are:

PURCHASE ORDER

Enter the purchase order number, or look it up in the Purchase Order Search window.

Note: This A/P Invoice by P.O. entry program respects document division restrictions by the Access Values assigned to the operator.
For more information on this security feature refer to Divisional Restricted Views.

Additional billing from the P.O. can be added to the invoice before the A/P Invoice is posted in Change mode, by entering the same Purchase Order and Invoice Number.

DROP SHIP P.O. Confirmation:

This window is only triggered after selecting the P.O.# if the Purchase Order was originally created from a Sales Order and the products were Drop Ship directly from the supplier to the customer.

Click YES to complete the Warehouse Receiving for the products on the supplier's A/P invoice.
The order will automatically be filled to generate a Sales Order Invoice to bill the customer, before returning to the A/P invoicing program.
Refer to Purchase Order from Sales Order Overview for details on this feature and the process flow.

Click NO if the warehouse receiving has been completed, to enter the A/P invoice details from the vendor.

Note: If the A/P invoicing clerk does not have access to Warehouse Receiving only a warning is generated, and the invoice cannot be entered.

P.O. NOTES

Click the VIEW P.O. button at the bottom of the screen to view the original Purchase Order, including any P.O. Notes.

INVOICE NUMBER

Type in the number on the vendor's invoice.
If the supplier's invoice number exceeds 9 digits, only the first 9 characters will display as the Invoice Number and the first 20 characters will populate the Invoice Ref field.

DEFAULT TAX CODES

After the vendor number is entered, if the feature to Calculate Tax On: A/P Invoices or Both has been activated in Company Taxing Parameters to automatically calculate and add taxes to an Accounts Payable invoice, the Default Tax Codes window opens as follows:

AMOUNTS INCLUDE TAXES

The default value displays as set up in the Additional Information window of Vendor Information which can be set to reflect how this supplier charges tax on AP invoices.

Check this box if the supplier has included the tax in each transaction total on the AP invoice and has not provided separate tax details.
By checking this box, the system will calculate the tax on each line detail, subtracting the tax amount from the line total and then automatically adding the tax transactions to the invoice.

Uncheck this box if the taxes are not already included in the line item total and should be calculated and added as additional tax transactions without reducing the line total.

Note: If taxes should not be calculated on this expense, change both Tax 1 and Tax 2 to NTX.

TAX 1 INCLUDED

The tax code for Tax 1 defaults from Vendor Information and if the operator has permission to 'Change Tax Codes' as defined in the Document Field Access of Role Permissions, the tax code can be over-typed for this invoice as required.
A drop-down list is provided to view and select from valid tax codes.

TAX 2 INCLUDED

The tax code for Tax 2 defaults from Vendor Information and if the operator has role permission, the tax code can be over-typed for this invoice as required.
A drop-down list is provided to view and select from valid tax codes in the window.

Finished?

Click OK to accept the tax information and exit the window.
Tax transactions post to the division defined in the AP Invoice header.

Update Vendor Tax Information With These Tax Codes?

This prompt only appears if the tax codes were changed for this invoice in the Default Tax Codes window, and the setting in the Company Taxing Parameters has been activated to update the Vendor Information taxes from the header of an invoice.

Click YES to update the taxes for the supplier in Vendor Information.
Click NO to only apply the taxes changed in the invoice header, on this specific A/P invoice.

Once the tax decisions have been completed, the vendor name, terms, and account balance information display in the A/P invoice header.

VENDOR NUMBER

The vendor number from the Purchase Order will display.

The Vendor address as stored in the Vendor Information table is displayed for reference so the correct vendor can be easily validated.

ACCOUNT BALANCE

The current account balance owed to this vendor will display.

TERMS

The terms for payment to this supplier display as defined in the Vendor Information.

INVOICE REF

This field is populated automatically if the vendor's invoice number exceeds the 9 character maximum.
Up to 20 characters can be stored in this field for reference.

This is information only and can only be set in ADD mode.
If the Invoice Ref is automatically populated from the Invoice Number field, it cannot be modified.
If this field is not filled in by the Invoice Number a reference number can be entered manually as required.

When the A/P invoice is posted any related Invoice Reference can be viewed in:

Vendor Account Inquiry
Hold/Release Invoices - unposted
Select Invoices - Computer Checks
Select Invoices - Manual Checks
Aged A/P Detail Report - spreadsheet output

Note: Any invoices that are created from this invoice in the invoice distribution process, will not inherit this reference number.

INVOICE DATE

The Invoice Date defaults to today's date, but can be over-typed as required.
This is the date that will be used for calculating due dates on invoices.
Date Range checking applies for module code APVI.

The original invoice date is viewable in Vendor Account Inquiry, and is printed on the Aged A/P Detail, Cash Application Report, and Check Register.
This date also prints on the check stub when printing computer checks.

POSTING DATE

The Posting Date defaults to the Invoice Date in Add mode, unless this date falls in a closed accounting period, as defined by the Date Range set for module APIP and the operator does not have Date Range override permission.
In this situation where the Invoice Date is outside the Date Range allowed for APIP, then the Posting Date defaults to today's date.
This allows late invoices to be entered for the correct date without requiring a rebalancing of a closed accounting period.

The date can be over-typed within the range if required.

The Posting Date will be used to post this purchase or expense to the General Ledger.
It is also the date used to balance Accounts Payable control account in the General Ledger to the Accounts Payable sub-ledger.

The Posting Date is NOT the A/P aging date and does NOT print on the check stub when using computer checks, instead the original Invoice Date is used.

DUE DATE

Accept the date displayed, as defined by the terms set for this supplier in Vendor Information, or over-type it with the correct Due Date.
The terms calculation is based on the Invoice Date.

This due date is NOT relevant if the invoice is actually to be distributed over several Due Dates.

Note: To speed up data entry, press the <TAB> key, to move through the invoice header fields, stopping only where input is mandatory.

CURRENCY

Accept the vendor's default currency, or select one from the drop-down list.

Exchange Processing:
If the currency assigned here has a currency exchange rate in Currency Codes, and the exchange posting processing has been activated from the Support Application Parameters, G/L posting transactions will be generated for the amount of the exchange.
Though these transactions do not display in the invoice details of A/P Invoices, a credit is generated to the currency exchange default account as assigned in Default Accounts, and a debit is generated to each distribution G/L account from the invoice, for the amount of the exchange.
These postings do NOT change the total dollar amount of the A/P invoice. They are noted on the A/P Purchases Journal printed from Post A/P Invoices, and a separate A/P Purchases Exchange, Duty & Freight Summary is also printed.

In Change mode, if the currency on a previously entered invoice is changed, and there is an exchange rate in Currency Codes for one of the currencies, a warning to check the exchange is displayed on the screen.
Click OK to continue and make the appropriate adjustments to the invoice details.

DISCOUNT DATE

Accept the default date according to the terms defined in Vendor Information, or over-type it with the correct date when your discount opportunity expires.

DISCOUNT %

Accept the discount percent according to the terms defined in Vendor Information, or over-type it with the correct discount percentage which applies up to and including the Discount Date.

1099-MISC CODE

This prompt appears only if the 1099-Misc processing has been activated in the Company Miscellaneous Parameters.

The 1099-Misc code for the vendor displays, as setup in the Additional Information window of Vendor Information. If this is not correct for this invoice, over-typed the code.
The code remains with the invoice and can be viewed in Vendor Account Inquiry. The 1099-Misc forms can be generated from U.S. 1099 - Miscellaneous Forms.

DIVISION

Accept the Operator's default division, or enter a preferred division code, or select it from the drop-down list.

Division Posting in the General Ledger:

• The "A/P Control Account" Credit posting for the invoice total is controlled as follows:
  • If the Activate G/L Posting By Division feature is activated in Support Application Parameters the "A/P Control Account" posting to the General Ledger always reflects this Division that is assigned to the invoice header regardless of the posting division on the details of the invoice.
  • If the divisional posting feature is not activated then the "A/P Control Account" always posts to the blank division even if the details on the invoice post to different divisions.

• The invoice details always post to the division defined for that specific detail in the detail distribution screen of the invoice.

• Taxes postings are as follows:

  • Taxes that are calculated and added to the A/P Invoice by the system per the Calculate Tax on A/P Invoices and G/L Journals/Checks feature as activated in the Company Taxing Parameters, post to the division defined in the A/P Invoice header.
  • Any Taxes added as a manual transaction in the A/P Invoice details posts to the division defined in the detail line.

Job Costing:

If the Job Cost tracking feature is enabled in the Company Posting Parameters, the operator will be prompted for the customer, site and job cost code as outlined in the Job Costing Customer, Site and Cost Code pop-up or in the Location and Event Information pop-up if Event Management is enabled.

The "Default Job Cost Info from AP Invoice Header" flag in the Company Miscellaneous Parameters controls whether the Customer, Site and Job Cost code information defaults from A/P Invoice header to the detail transactions.
When this parameter is unchecked the operator is forced to select the appropriate Job Cost information for each line rather than just accept a defaulting value.

When a non-inventory item is being billed on an AP Invoice, the GL Account for posting the expense was originally captured on the Purchase Order entry, so when a Job Cost code on that AP Invoice detail line is selected the operator is prompted whether to use the original PO GL Account or to override it with the GL Account associated with the selected Job Cost Code.

BATCH

Batch codes are used to post groups of A/P invoices.
There are two methods of assigning batch codes as defined in the Company Miscellaneous Parameters for the company.

1. If your firm uses the manual assign method, enter the batch code or select the batch code from the drop-down list, as setup in A/P Batch Codes.
   If more than one person is entering Accounts Payable invoices, each person should have their own batch code (i.e. their initials). This allows each person to input invoices and post separately.

2. If your firm uses the auto-assign batch code, the software assigns the batch code to each new group of invoices, with no ability to over-ride the batch number.

ON HOLD

Once an invoice is entered, it is assumed to be ready to posted (not on hold) unless it is specifically put on Hold.
Putting an invoice on Hold prevents the invoice from posting with Post A/P Invoices.
To put an invoice On Hold or to Release it for posting, use Hold/Release Invoices.

INVOICE NOTE

Enter any invoice comments. These notes can be reviewed in Vendor Account Inquiry and changed in the window, in Change Vendor Invoice Due Dates.
Comments also print on the Purchases Journal.

PRINT NOTE

This field is skipped if there are no notes.

Check this box to print these notes or comments on the Check Stub, and on the Cash Requirements Report.
Uncheck this box to prevent these notes from printing on the Check Stub or Cash requirements Report. They will still print on the Purchases Journal.

FILE ATTACHMENTS

Multiple external documents or images can be associated with this invoice when setup in the File Attachments window.

This field is disabled if there is no attachment directory defined in Company Miscellaneous Parameters.

RECEIVE ALL

This prompt can be used to set the default value for the Received Flag for each product.

Check this box if most of the items on the Purchase Order were received and should now be invoiced. Specific items that are not to be invoiced can then be unchecked individually.
Uncheck this box if most of the items on the Purchase Order were NOT received, and then manually check the items that were received and are to be invoiced.

Note: This defaulting prompt is disabled if the Enable Job Costing feature is activated in the Company Posting Parameters as job costs need to be entered individually as each line is received.

Finished?

Click ACCEPT to accept the invoice header and to access the product details, or click CANCEL to abort.

EVENT WINDOW

This window only appears if the Event Management processing has been activated in the Company Rate Parameters and it has not been de-activated for the operator's division in the Additional Pop-Up Windows, in the Divisional Contract Parameters.

Enter the event information as prompted in Location and Event Information, or close the window if event rates do NOT apply to this document.

Resulting A/P Invoice Product Details from P.O.
Only the items outstanding on the Purchase Order are listed in the A/P invoice details as outlined in A/P Invoice Details by P.O.