Supplier Invoicing—Basic Data and Requirements Exercises

Main Exercises

Enterprise – Company

Company Basic Data

Purpose: The purpose of this exercise is to show how to use the parameters at the company level that control the supplier invoicing process.

Windows:
Company

1. Open the Company window and query for your company.
2. If your company's tax regime is Sales Tax or Mixed, click the Address tab and thereafter the Tax Code sub tab. Create a new record (F5), and enter sales tax codes using the List of Values (F8). These tax codes will be suggested for all the supplier invoices, except for those matched with a purchase order or a sub contract certificate. For the latter, tax will be retrieved from the purchase order or the sub contract certificate instead.
3. Click the Invoice tab. The parameters shown were created as default values when the company was created.
4. Make sure that the parameters are set correctly.

Enterprise – Supplier

Invoice

Purpose: The purpose of this exercise is to set up invoice information for a supplier. Supplier information is specified on several tabs. Some tabs are general and are used by all components, and some tabs are component specific. When you open the Supplier window, you will see both general tabs and one tab per installed component.

Windows:
Supplier

1. Open the Supplier window.
2. Click the Invoice tab and then click the Tax Information sub tab. Create a new record or use one of your suppliers.
3. Make sure you have the following information for your supplier.

4. Save the information (F12).  

Note: If the supplier's tax regime is Sales Tax, leave the Tax Code field blank. In this case, tax is controlled by your company's delivery address. Go to Company/Address, click the Tax Code sub-tab, and enter tax codes for the default delivery address. For all the invoices that are matched with a purchase order or a sub contract certificate, tax lines are retrieved from the purchase order or the sub contract certificate instead. For all the suppliers, you can select the option whether to report or withhold tax. You may have to define additional information relating to tax withholding or reporting by right-clicking and then clicking Tax Withholding/Reporting if you choose to report income or withhold tax for the supplier. 

Payment

Purpose: The purpose of this exercise is to set up payment information for a supplier. 

Windows:
Supplier

1. Open the Supplier window.
2. Click the Payment tab, and create a new record or use one of your suppliers.
3. Make sure you have the following information for a supplier using a VAT tax regime.

4. Save the information (F12). 
5. Right-click and then click Payment Methods.

Note: You must specify the data that is required by the payment institute and the method of payment. The only predefined formats are for Bankgiro transfer (Sweden) and Post Giro transfer (Sweden).     

Invoice – General

Delivery Types

Purpose: Delivery types can be used to control and report on different types of sales and purchases within the European Union. This exercise shows you how to prepare two types of trade.

Windows:
Delivery Types

1. Open the Delivery Types window.
2. Create a new record (F5).
3. Make sure you have the following data:

4. Save the information (F12). The delivery types are now ready to be used when you enter the supplier invoices. 
   

Invoice Series and Invoice Number Series

Purpose: The purpose of this exercise is to set up the invoice series used in the supplier invoicing process.

Windows:
Invoice Series

1. Open the Invoice Series window.
2. Populate the window (F2). All the invoice series that were created when your company was created are displayed.
3. Enter a new invoice series to use for the supplier invoices, by specifying an invoice series ID and a description.
4. Save the information (F12).

Note: The supplier invoice numbers are specified by the user for each invoice, based on the invoice document, and a series interval is not required. However, If an automatic number series is defined for a selected supplier invoice series ID, then you will not be allowed to manually enter any value for the invoice number in the Invoice Identity field.

Report Codes and Report Code Values

Purpose: The purpose of this exercise is to set up report codes and report code values to be used with the supplier invoice types, which will be helpful in tax reporting.

Windows:
Tax Report Codes for Argentina
Supplier Invoice Types

1. Open the Supplier Invoice Types window.
2. Query for the invoice type for which you want to enter report code values.
3. Select the record, right-click and then click Report Code Values.  The Report Code Values window opens.
4. Select the table area and create a new record to enter the report code values. All five available system report codes will be displayed in the Report Code column.
5. Enter the alphanumeric report code values you want in the corresponding Value fields.
6. Save the information. (F12)                    

Invoice – Supplier

Invoice Types for Supplier

Purpose: The purpose of this exercise is to create an invoice type and connect it to your invoice series.

Windows:
Supplier Invoice Types

1. Open the Supplier Invoice Types window.
2. Populate the window (F2). All the invoice types that were created when your company was created are displayed.
3. Enter a new invoice type for the supplier invoices using the invoice series you created in the previous exercise. Enter the following:

4. Save the information (F12).

Note: You can now use this invoice type when entering supplier invoices.               

Invoice Payment Authorizers

Purpose: The purpose of this exercise is to define the users who have the authority to authorize the supplier invoices/installments for payment.

Windows:
Invoice Payment Authorizers

1. Open the Invoice Payment Authorizers window.
2. Create a new record (F5).
3. Enter the following data:

4. Save the information (F12).     

Supplier Invoice Matching

Purpose: The purpose of this exercise is to define the parameters for matching the invoices and purchase orders. The parameters defined on the company record will be used as default if no values are specified for the supplier.

Windows:
Company /Invoice
Supplier /Invoice

1. Open the Company window.
2. Click the Invoice tab, and populate or query for your company.
3. Click the PO Matching sub tab. In the PO Matching Parameters section, select a value in the Invoicing Supplier on PO line(s) not equal to Supplier on Invoice field to specify how purchase orders will be matched with invoices if the invoicing supplier specified on purchase order lines is not the same as the supplier on the invoice.
4. Enter values of your choice in the Tolerance % and Tolerance Amount fields. You can enter values in both fields, and the system will use the value giving the smallest tolerance.
5. Save the record.
6. Open the Supplier window.
7. Click the Invoice tab, and populate or query for your supplier.
8. In the PO Matching section, select the Self-billing check box if you want the invoices to be automatically created when the purchase order arrivals are registered. If this check box is selected, no tolerance checks will be performed.
9. In the Tolerance % and Tolerance Amount fields, enter values of your choice. These are the values the system will use when calculating whether the invoice amounts are within the tolerance of the purchase order amounts.

Note: If the matching result is out of the tolerance limit, a warning message appears. You can then either override the specified tolerance or make adjustments to the quantities and amounts.  

Supplier Groups

Purpose: The purpose of this exercise is to create a new supplier group. Supplier groups are used to separate suppliers in queries and reports, and also to separate accounting transactions. Supplier Groups is a control type that may be used to control accounts payable postings (supplier liability) in posting control.

Windows:
Supplier Groups

1. Open the Supplier Groups window.
2. Populate the window (F2). A number of supplier groups that were created when you created the company will be displayed.
3. Create a new record (F5).
4. Enter a new supplier group as shown below.

5. Save the information (F12).

Note: If you create a new supplier group, you must also check whether you need to create additional posting control details (see exercise below). 

Preliminary Codes

Purpose: The purpose of this exercise is to define preliminary codes. These codes may be used to post the preliminary cost at preliminary supplier invoice entry.

Windows:
Preliminary Codes

1. Open the Preliminary Codes window.
2. Create a new record (F5).
3. Enter a preliminary code with your initials, and also enter a description.
4. Save the information (F12).

Note: Before you can use these preliminary codes for posting of preliminary costs, the posting control information must be set up with the preliminary code as the control type for the IP5 posting type Preliminary Cost.  

National Bank Codes

Purpose: The purpose of this exercise is to define national bank codes. These codes are used for reporting to the central bank when making cross-border payments. The code can be applied to an invoice, or later in a supplier payment proposal.

Windows:
National Bank Codes

1. Open the National Bank Codes window and populate.
2. As you can see, for Germany and Norway, a set of national bank codes is already provided.
3. Create a new record (F5).
4. Enter a national bank code for your country with your initials and a description.
5. Save the information (F12).

Report Codes for Tax Lines, Withholding

Purpose: The purpose of this exercise is to define report codes for tax lines using tax withholding. 

Windows:
Report Codes for Tax Lines, Withholding

1. Open the Report Codes for Tax Lines, Withholding window and populate.
2. For some countries, report codes for tax withholding lines are already provided.
3. Create a new record (F5).
4. Enter a report code for your country with your initials and a description.
5. Save the information (F12).

Accounting Rules

Posting Control

Purpose: The purpose of this exercise is to set up the posting types used by the supplier invoicing process.

Windows:
Posting Control

1. Open the Posting Control window.
2. Query for all the posting types starting with IP%. All posting types used for both customer invoices and supplier invoices will be displayed. The posting types shown below are used for the supplier invoices. Verify that the following values are displayed.

3. Select the line for IP1 Supplier Liabilities, right-click, and then click Details. The posting control details for each supplier group will be displayed.
4. Create a new record for your supplier group.
5. Enter your group as the supplier group, select an accounts payable (supplier liabilities) account from the List of Values, and then enter a valid date interval.
6. Save the information (F12).

Tax Codes

Purpose: The purpose of this exercise is to set up tax codes. Note: The use of the different tax code types depends on the tax regime of the company as well as the tax regimes of the customers and suppliers attached to that company.

Windows:
Tax Codes

1. Open the Tax Codes window.
2. Populate the window (F2). All existing tax codes are displayed.
3. If your company tax regime is VAT, enter a new tax code with the following information:

If your company company tax regime is Sales Tax, enter a new tax code with the following information:

If you want the supplier to be subjected to withholding tax codes, you will have to define withholding tax codes with the following information:

After entering the above information, save the record, and  right-click and then click Tax Withholding to enter more information about the withholding tax code you entered.

Note:

If you want to use Mixed tax regime, you may need to define both Sales Tax and VAT tax codes in your company.

If you add a tax code, you may need to add additional information in Posting Control. If Tax Code is used as a control type for the tax postings, you must add a line for the new tax code and connect it to an appropriate account.