This Article covers both Supplier (Vendor) Batch Invoicing and Supplier (Vendor) Debit Notes (Credit Notes). Most Supplier (Vendor) Invoicing will involve invoices for Item or Services and this topic is dealt with in the article “How does the Purchase (Un-Ordered) Item System Invoicing Work?” or if you’re using Purchase Ordering in conjunction with Purchase Invoicing, then the article entitled “How does the Purchase Ordering System Work?”. ”Batch” Invoicing, on the other hand, is a short form of Invoice entry which requires no product movement or quantity detail. It is typically used for purchasing small amounts such as household cleaning items, manual repairs, business consumables and such like. Its pre-requisites are the Suppliers (Vendors) Master table and the Codes tables including General Ledger Codes, Currency Codes and Tax Rates.
2. The Batch Invoice Process:
In this program Invoices tend to be entered in Batches rather than individually (although just a single entry can constitute a batch) with each line in the Batch representing a single Supplier (Vendor) Invoice. A running Batch Total is maintained at the bottom of the window to function as a traditional off-line Batch Control Total. When you finish the Batch entry, you “Post” the entire Batch of transactions to the system “all in one go” which will then update each line entry’s respective Suppliers’ Ledger Accounts and General Ledger/ BI Codes accounts.
Each Line on the Batch is automatically numbered by the system after it’s been Posted.
N.B. Entering large batches of Invoices can be time consuming and sometimes the Internet connection can be interrupted or the Electricity supply might fail while you are part way through the Batch entry process. In such circumstances you may be disconnected from the system and have to log in again. To counteract the loss of data, this program has an automatic “Save” function which backups the progress of the batch in the background as you enter it line by line. So when you log in again you can “Recover” the Batch you were working on simply by going back into the “New Batch Entry” option. If a background in-progress file is found, then it will be re-loaded, presented, and you can carry on entering the remainder of the Batch - (or “Clear” it if you don’t want it, but remember, if you do this, it won’t have updated the system – which is only be carried out if you “Post” a batch).
You can also use this facility to “Save” a batch part way through. Simply exit the program without “Posting” or “Clearing” the batch and return to it later on.
The following is synopsis of the entries to be made on each Line of the Batch;
The Account is picked from the Drop Down provided which will retrieve and populate the Supplier’s (Vendors) defaults (General Ledger Code, BI Code and default Tax Code) across the entry.
If your Supplier (Vendor) doesn’t already exist on the system you can, without leaving this program, call up the Supplier (Vendor) Maintenance program from the Drop Down in an overlay Window and, enter his details followed by “Save”. When you’ve finished, the Account field will be populated with your new entry and control is then returned to this program.
The GL Account Code is inherited from the Supplier’s (Vendors) Master record (if any). It can be over-ridden after presentation using the Drop Down or by keying in a General Ledger Code.
If you are using Extended Business Analysis then you will be asked to supply a BI Code in this next field. Defaulted from the Supplier (Vendor) Master record where it is an optional entry, this is the default for this Supplier. A BI Code is a sub-division of the company and its uses and setup are detailed in the article “How do I Implement Extended Business Analysis?”. It is not a mandatory entry as you may not wish to use Extended Business Analysis.
The Date is the date of the transaction. It defaults to today’s date but may be over-ridden by using the Drop Down.
The Ref. relates to a Supplier (Vendor) Reference which might be quoted on the Purchase Invoice such as a Supplier (Vendor) Invoice No.
Next, key in a short Description of the goods supplied.
Followed by the Cost and the VAT (Tax) Code from the Drop Down which will then calculate and display the VAT (Tax) Amount. If there are rounding differences between the Supplier’s (Vendors) VAT (Tax) Calculation and the calculated VAT (Tax) Amount, use the Supplier’s (Vendors) VAT (Tax) Amount and Line Total instead of the system generated values.
VAT (Tax) Amt - The VAT (Tax) amount is calculated from the tax rate for the tax code and the next amount entered. This can be overwritten by ‘double clicking’ on the tax amount field. A dialog box will appear into which you should insert the override amount. Note that a warning will display if this amount is more than 0.10 above the originally calculated value. This is only a warning and will not prevent posting.
If you wish to see transactions that have been posted with changes to the VAT (Tax) amounts you can run the Tax Exceptions rule report;
This report shows the transactions posted where the VAT (Tax) amount has been modified
Line Total - The total amount is the sum of the net amount plus the VAT (Tax) amount. Totals for the batch are shown at the bottom right hand corner of the batch invoice screen. The Supplier (Vendor) currency and the base currency are both displayed
Exchange Rate. If your first Supplier (Vendor) in the Batch is a Foreign Currency Supplier (Vendor) then the Exchange Rate field at the bottom left hand corner will be populated with the equivalent Exchange Rate from the Currency table and which you can over-ride if necessary.
In this instance, the Invoice Lines costs will be calculated taking account of the Exchange Rates. The totals for both Currencies (Base and Foreign Currency) are shown at the bottom of the Batch. You cannot, however, mix currencies in a Batch.
Sub Total - This is the Net totals of all the lines. This is shown in both the Supplier (Vendor) currency and the Base Currency
VAT (Tax) Total - This is the VAT (Tax) totals of all the lines. This is shown in both the Supplier (Vendor) currency and the Base Currency
Total - This is the VAT (Tax) plus Net amounts of all the lines. This is shown in both the Supplier (Vendor) currency and the Base Currency
Clear Batch - If you have saved lines when you open the screen you can use this Clear batch button to remove all the lines and start from a fresh input screen. This will remove all the entries and you will not be able to retrieve these again
When all items for the invoice have been entered, click the Post Batch button and choose whether you would like to just post the batch or to post and print it
3. Reviewing and Correcting Batches:
Before commencing the entry of a Batch of Supplier (Vendor) Invoices it is usual practice to manually add up all the Invoices in the Batch and produce “Control Totals” for the Net Amount, the total VAT (Tax) Amount and the Gross Amount. When you have finished entering your Batch of Invoices these manual Control Totals should agree with their computed counterparts at the bottom of the entry window. If they do not then some of the various line entries need to be corrected. Just click in any one of the fields to amend it, and if there are missing lines, just add them on to the end. When finished, you should click on the “Post Batch” button.
Once the Batch has been posted it will be cleared from the system and the individual Invoices will appear in the Purchase Batch Invoices Grid where you can review them. However, unlike Item (Product) Purchase Invoices these Invoices have now been posted directly to the Supplier’s (Vendor's) Accounts and to the various General Ledger Accounts – whereas Item nvoices might await Approval (see the Articles “How do I Implement Purchasing Approval for Budget Holders?” and “How do I Implement Purchasing Approval for Non-Budget Holders?”, or, even if not, require posting by choice rather than automatically. As a consequence, if you want to amend any of the details of these Invoices you should follow the procedures detailed in the article “How do I Amend, Correct or Delete a Transaction?”
4. Other Numbers and Actions:
Reference: This is always the system generated audit trail reference of the transaction that the system produces automatically and cannot be changed by the user. This is also the "Ref." on the Transaction Browser after you post the transaction.
Number: This is the "Internal Number" or "Int. No" of the transaction. In the case of Batch Invoices this is a sequential number continuing from the last previous line of the Batch entry. In other cases it is the Document number controlled by the parameters in the Company Details and Settings (Supplier (Vendor) Invoice No. Supplier (Vendor) Order No., etc.). In the case of Supplier (Vendor) Item Invoices, it is the Supplier’s (Vendors) Invoice No.
External Reference: In this case this is the Ref. quoted on the Batch Line entry and detailed above as possibly being the Supplier’s (Vendors) Document No.
Actions: You can also choose some of the following actions from the Drop Down;