Enter Preliminary Supplier Invoice

Explanation

Use this activity to rapidly enter multiple supplier invoices at once, often at the time the invoices arrive. At this time, the final cost postings are not yet known. The supplier's identity, invoice number, and amount are the only required information. You can connect the preliminary supplier invoice to a purchase order and a delivery receipt by specifying the relevant number, and the supplier and invoice information are automatically retrieved. If the Create Postings at Invoice Entry check box is selected from the Company/Invoice tab, vouchers are created for the preliminary invoices as they are saved. These vouchers contain supplier liability and tax postings as well as a preliminary cost posting. Once it is saved, the invoice receives the Preliminary Posted status.

However, if the automatic payment authorization level is set to When Posted and the Create Postings at Invoice Entry check box is selected in the company level and the invoice is saved, the Preliminary posted invoice will be automatically authorized for payment and the invoice will have the Preliminary Posted Auth status. If the Create Postings at Invoice Entry check box is cleared, no vouchers are created the invoice is saved, and its status is set to Preliminary. You can also specify the invoice as an advance invoice.

The amount that you should enter for the invoice depends on the amount entry method selected for the company on the Invoice tab in the Company window. The tax amount and the net or gross amount will be shown in their respective fields. If you want to switch between entering the gross amount and the net amount, right-click on the window and then click Swap Net/Gross Amount Entry.

If the company uses the posting proposal feature by selecting the Use Posting Proposal check box on the Company/Invoice/General tab, it will be possible to match the invoice automatically. The postings will be retrieved from the purchase order reference or the receipt reference given in the invoice, and will be matched according to the purchase order (PO) matching level selected for the company.

When the preliminary supplier invoice is to be saved, a check will be performed to identify whether there is an duplication of invoice number against all companies where the supplier is registered for invoicing. If duplicate supplier invoice identities exist, an error message will be displayed. 

Prerequisites

• A supplier should exist. 
• If the preliminary supplier invoice will be connected to a purchase order, the purchase order should be created in IFS/Purchasing.
• If IFS/Project Reporting is installed and if you want to match project transactions reported by contractors with the invoice, an invoicing advice should be created and approved.

System Effects

If the Create Postings at Invoice Entry check box is selected on the Enterprise/Company//Invoice tab, a voucher belonging to function group I is created when the invoice is saved, and the cost (net amount) is posted to a preliminary account. All postings are created automatically based on the posting control information. For a preliminary entry, posting lines will be automatically created in the following steps:

• Invoice amount posted on the code string defined for posting type IP1, Supplier Liability, in posting control in IFS Accounting Rules.
• The tax method defined in the Accounting Rules/Tax Codes/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 that is used depends on whether you are using value-added tax (VAT) or sales tax (defined on the Enterprise/Company/Invoice/Tax Information tab) as well as the tax type selected (defined in the Accounting Rules/Tax Codes/Tax Codes window):
  • If tax is equal to VAT and tax type is not calculated, then the posting type used is IP3, Tax Received, Invoice. 
  • If tax is equal to VAT and tax type is calculated, then the posting types used are IP9, Tax Received, Calculated and IP10, Tax Disbursed, Calculated.
  • If tax is not equal to VAT and the tax type is sales tax, then the posting type used is IP3, Tax Received, Invoice. If tax is not equal to VAT and the tax type is use tax, then the posting type used is IP11, Use Tax.
• If the payment tax method is used, the account specified for posting type IP3 is a preliminary account. Reallocation to the definitive account for tax received occurs when the invoice is paid.
• The invoice net amount is posted to the preliminary income statement or balance sheet account defined for posting type IP5, preliminary cost, in the Accounting Rules/Posting Rules/Posting Control Navigator window.

If the Create Postings at Invoice Entry check box is cleared on the Enterprise/Company/Invoice tab, no voucher is created when the invoice is saved. In this case, a voucher will be created later using the Post Invoice operation in the Invoice/Supplier Invoices/Manual Supplier Invoice window.

If you specify the invoice as an advance invoice posting types IP17 (Customer Claims, Advance Invoice) and IP 23 (Tax Disbursed, Advance Invoice) will be used to post the invoice. The advance invoice can later be connected to the final invoice which will result in reducing the amount due from the final invoice. (if the advance invoice is paid in full)

If the postings are retrieved from the purchase order reference or receipt reference given in the invoice, and the invoice is fully posted, then the invoice will be automatically marked as matched with the purchase order or the receipt reference, as appropriate according to the PO Matching level selected for the company. If the posting proposal is not in balance, then a tolerance line will be created automatically or manually to balance the proposal according to the settings specified in the Always Create Tolerance Posting check box on the Supplier/Invoice/General sub tab of the Supplier window. If the Always Create Tolerance Posting check box is selected then the tolerance postings are always created automatically. If it is not selected then the tolerance posting is created automatically only if the difference amount is within the tolerance levels specified.

Window

Preliminary Supplier Invoice

Related Window Descriptions

Preliminary Supplier Invoice

Procedure

1. Open Preliminary Supplier Invoice.
2. Verify that values appear by default in the Vou. Date, Period, User Group, and Vou. Type fields.
3. Create a new record. Values appear automatically in the Invoice Type and Invoice Series fields. The voucher date appears by default in the Invoice Date field, and today’s date appears by default in the Arrival Date field.
4. If IFS/Purchasing is installed, you can connect the invoice to an existing purchase order by specifying the purchase order number in the PO Reference field. Once you do so, all supplier information will be retrieved from the purchase order and displayed as the default values. You can also specify a delivery receipt reference number if the order has several deliveries, to facilitate the PO matching process. If the PO is connected to a project, the project ID will appear in the Unique Project ID field. If IFS/Project Reporting is installed and if you want to match project transactions reported by contractors with the invoice, you can specify an invoicing advice reference in the Inv. Advice Ref. field.
5. Enter the supplier ID in the Supplier field. The supplier’s name appears automatically. Other supplier details also appear by default. You can change these values as appropriate if required.
6. Enter the invoice number in the Invoice No. field and the corresponding amount.
7. Select the Advance Invoice check box if the invoice is an advance invoice.
8. Enter the reference number in the Payment Reference field.
9. Enter a code in Preliminary Code field if the posting of supplier liability is controlled by a preliminary code in posting control. Do not enter a preliminary code if the posting of a supplier liability is controlled by a supplier group or if a fixed account applies.
10. Enter any code in the Delivery Type field. You can change the values in the Arrival Date and Invoice Date fields as needed.
11. Select When Posted from the Automatic Payment Authorization list if the invoice need to be automatically authorized for payment when an invoice is in Preliminary posted state.
12. Save your changes. If a voucher is created, the voucher number appears in the Voucher No. field.

Note: If a value is entered in the Unique Project ID field this project ID will be automatically posted to the project code part in the invoice preposting.