Post Supplier Invoice

Description of process

The Post Supplier Invoice process is used to enter cost postings for a supplier invoice. This process is used both when a direct entry of a supplier invoice and when a final entry of a supplier invoice is performed.

Direct Entry of Supplier Invoice

Use this process when cost postings are already known at registry of a supplier invoice. Enter the invoice in the Manual Supplier Invoice window. A direct entry of an invoice means that the invoice with final costs are posted directly when the invoice is entered for the first time. For each direct invoice entry, a voucher is created belonging to function group I. You can also register a multi-company supplier invoice in the same window. This is useful when your company is to pay for an invoice but the cost is to be distributed to one or more affiliated companies. Multi-company supplier invoice vouchers created in the receiving companies belong to voucher group D. Postings for supplier liability and any tax are created via posting control for all supplier invoices. The expense postings are entered manually.

The created voucher can be seen when you right-click, and then click View Vouchers after the invoice has been saved. There is a process for period allocation of the cost via manual supplier invoice while the voucher is still in the hold table.

As a result of a direct invoice entry, the following postings are created:

• Invoice amount: Posted automatically to the account defined for the posting type IP1, supplier debts, in posting control in IFS/Accounting Rules
• Tax amount: The tax method defined in Tax Codes window determines whether the tax is posted to the account for tax received on final (direct) entry or payment. The tax amount is posted automatically to the account defined for the actual posting type in posting control in IFS/Accounting Rules. The valid posting type used depends on the tax regime (VAT or Sales Tax) defined in Enterprise/Company/Invoice tab and the tax type selected in Tax Codes window:

• If tax type is VAT or Sales Tax, then IP3, Tax Received, Invoice.
• If tax type is Calculated VAT, then IP9, Tax Received, Calculated and IP10, Tax Disbursed, Calculated.
• If tax type is Use Tax, then IP3, Tax Received, Invoice and IP11, Use Tax.

If the payment tax method is used, the account specified for posting type IP3 should be a preliminary account. Reallocation to the definitive account for tax received occurs when the invoice is paid.

• Net amount: Cost postings for the invoice net amount are entered manually. If Pre-posting information is specified in the Supplier Invoice Pre-Posting dialog box and the Affect Line Postings check box is selected, this information will be automatically suggested as default when you are entering a posting line on the invoice.
• Net amount: For multi-company supplier invoice entry, posting type IP13 inter company due from affiliated company must be set up, and IP 14 for inter-company transactions due to affiliated company.

If the Automatic Authorization of Payment Plan at Final Posting check box in Enterprise/Supplier/Invoice is checked, the invoice will automatically be authorized for payment when the invoice is saved as finally posted.

Final Entry of Supplier Invoice

Use this process to finally post preliminary invoices when the expense postings are known. Supplier Invoices that have been entered with preliminary or no postings are finally posted when cost postings are completed. Select the invoice in the Manual Supplier Invoice window and find the preliminary invoice that should be posted. Enter the cost postings and save the invoice. A voucher belonging to function group J is created when the invoice is saved and the net amount completely posted. This voucher automatically reverses the preliminary cost posted in the voucher created at preliminary entry. The expense postings are entered manually. You can also register a multi-company supplier invoice in the same window. This is useful when your company is to pay for an invoice but the cost is to be distributed to one or more affiliated companies. Multi-company supplier invoice vouchers created in the receiving companies belong to function group D.

The created voucher can be seen when you right-click, and then click View Vouchers after the invoice has been saved. There is a process for period allocation of the cost via manual supplier invoice while the voucher is still in the hold table.

As a result of a final invoice entry, the following postings are created:

• Net amount as preliminary posted cost: Reversal of the invoice net amount that was preliminarily posted to the profit and loss or balance sheet account defined for posting type IP5, preliminary cost, in Accounting Rules/Posting Rules Rules/Posting Control. 
• Tax amount: The tax method defined in Tax Codes window determines whether the tax is posted to the account for tax received on final (direct) entry or payment. The tax amount is posted automatically to the account defined for the actual posting type in posting control in IFS/Accounting Rules. The valid posting type used depends on tax regime (VAT or Sales Tax) defined in Enterprise/Company/Invoice tab and the tax type selected in Tax Codes window:

• If tax type is VAT or Sales Tax, then IP3, Tax Received, Invoice.
• If tax type is Calculated VAT, then IP9, Tax Received, Calculated and IP10, Tax Disbursed, Calculated.
• If tax type is Use Tax, then IP3, Tax Received, Invoice and IP11, Use Tax.

If the payment tax method is used, the account specified for posting type IP3 should be a preliminary account. Reallocation to the definitive account for tax received occurs when the invoice is paid.

• Net amount: Cost postings for the invoice net amount are entered manually. If Pre-Posting information is specified in the Supplier Invoice Pre-Posting dialog box and the Affect Line Postings check box is selected, this information will be automatically suggested as default when you are entering a posting line on the invoice.
• Net amount: For multi-company supplier invoice entry, posting type IP13 inter company due from affiliated company must be set up, and IP 14 for inter company transactions due to affiliated company.

If the Automatic Authorization of Payment Plan at Final Posting check box in Enterprise/Supplier/Invoice is checked, the invoice will automatically be authorized for payment when the invoice is saved as finally posted.

You can divide a payment for a supplier invoice into several partial payments in the Installment Plan and Discounts dialog box. You can delete planned payment lines, add new ones, or change existing ones. To change the payment date, you need to delete the line and then enter a new line with a new date. The sum of the planned payment amounts included in a payment plan for the invoice must equal the invoice gross amount.

Applying Cash Discounts to Acquisition Values of Fixed Assets Objects

Additional postings to fixed assets code strings are automatically created at final invoice entry if the following conditions are fulfilled:

• The Reduction by Cash Discount check box is selected in the Company| Fixed Assets tab.
• The Apply Cash Discount to Fixed Assets Acquisition Values check box is selected for the payment terms of the invoice.
• The invoice is partly or fully paid and a cash discount was applied at payment.
• At least one invoice posting includes a fixed assets acquisition account and a fixed assets object in Investment or Active status.

These automatic postings repost the received cash discount proportionately from the cash discount postings at payment to the Fixed Assets code strings of the invoice. The transaction code of these postings is set to FA CASH DISCOUNT.

Before you start entering information, check that Basic Data Required (BDR) has been set up as per instructions in Define Financials Basics, the Set up Basic Data Accounts Payable process.