Introduction

The Purchase Product Invoicing program allows you to enter Supplier (Vendor) Invoices unaccompanied by an Order. It can be integrated with the following:

• Inventory Management system: Purchase Invoicing can be integrated either fully in the context of quantities management, or partially in the context of non-stocked goods and services. 
• Purchase Approval system: Purchasing Approvers and/or Budget Holders can implement Purchase Invoicing.

Uses for Purchase Invoicing

Even if you use Purchase Ordering, there are certain Invoices which you may not want to pre-order, such as bills for electricity, rates, and rent. 

In the case of small low value Items, such as Stationery and Refreshments, you can use the Batch Entry program without a preceding Purchase Order. This, however, is a security risk as it bypasses the Ordering (and Approval) processes. If this is a concern, remove the Batch Invoicing option from your Menus (or severely restrict its use) thereby requiring users to process Invoices via the Item Invoices option. 

Pre-requisites

The Purchase Invoicing facility requires the following pre-requisites:

• the Supplier (Vendor) Master Record
• the Inventory Master Record (Stock and/or Non-Stock)
• Code tables including General Ledger Codes, Taxes, and Currencies

Keyboard Shortcuts

• TAB: Advances to the next cell in the grid
• TAB + SHIFT: Goes back to the previous cell in the grid
• ENTER: Advances to the next cell in the grid
• F6: Use to make a copy of the current line and insert a new line with the same details. This is a useful function if you are creating payment records with similar details, such as recording several Receipts to the same General Ledger account but with different cheque references. 
• F8: Use to delete the current line. If this does not work, try FN+F8.

See:

Purchase Item Invoice (4.2) - AIQ Academy
 

How does the Purchase Ordering System Work?‍ 

How do I Implement Purchase Approval for Budget Holders?‍ 

How do I Implement Purchase Approval for Non-Budget Holders?‍ 

How does Purchase Batch Invoicing Work?‍ 

How do I use the Client Administration facilities to add Users and Control their Access Permissions? ‍ 

Entering Purchase Invoices 

Go to Purchases > Item Invoice > New Item Invoice to open the Purchase Invoice screen.
 

Invoice Details tab (header)

In the Invoice Details tab, complete the following fields where appropriate: 

• Invoice No: This is the Supplier’s (Vendor’s) Invoice Number. 
• Supplier: Select the Supplier (Vendor) from the dropdown. Their details will autofill in the appropriate fields. The system checks for duplicate Invoice Nos. from that Supplier (Vendor). If they exist, you will receive a warning. However, this will not prevent you from using the Invoice.
• Invoice Date: The transaction date defaults to today’s date. Note that this date will place this invoice into the correct financial period. This is done automatically to ensure that the transactions go to the correct period.
• Match to Order (optional): If you want to match the Order to the Invoice for the selected supplier, enter the PO Number here. The field will show a list of Orders for this supplier with the Order No, Order Date and Gross Amount. Selecting the Order in this field will bring the line details from the Order.
• Order No (optional): This number is automatically loaded by the system when creating an invoice from an order. Alternatively, you can manually enter a purchase order reference.
• Order Date, Expected Delivery Date: If this invoice does not relate to a specific order already entered on the system you can record the expected delivery date here. It defaults to today’s date but can be overwritten.
• Use ACC VAT (Tax) Code: Checking this box means that any items entered will use the account's default tax code instead of the product's tax code. For example if a particular product has a default tax code of 21%, but a particular Supplier is an overseas Supplier and is exempt from tax. This field can be modified to allow you to account for the difference. However, you can still override the rate on individual lines. 
• BI Code (optional): These are used for reporting purposes. This defaults from an optional entry in the Supplier (Vendor) Master Record. A BI Code is a sub-division of the company. Some Supplier (Vendors) always supply from the same sub-division so you can have a default BI Code for all Invoice lines. If the Invoice will use several BI Codes, you don’t need to add a default here. However, if you use Purchase Invoice approval, you can only use one BI Code per Invoice.
• Supplier (Vendor) Area: You can use this field to analyse Supplier (vendor) sales for example into various areas or groupings. This field is used in the Purchases Analysis datawarehouse. This defaults from the Supplier (Vendor) Master Record but you can override it here. 
• OCR Checked: Check this if the Invoice has arrived from a third-party OCR scanning tool. It indicates that the Invoice has been checked for correct General Ledger Codes and BI Codes. The flag is also available for selection on the Purchases Invoices listing grid.
• Billing Address: This is the address of the Supplier (vendor) that this invoice relates to. This address is read from the Supplier(vendor) record and can be changed at invoice level.
• Supplier (Vendors) Contact: This defaults to the Primary Contact from the Supplier (Vendor) Master Record. This can be modified for a specific invoice.

Invoice Details tab (lines)

To temporarily hide the Supplier (vendor) details:

• Click Display Lines Only. Click again to restore. 
• Click the circular button at the start of each line to display/hide details from the Inventory file for the Item nominated on that Invoice Line.

Note the following fields relating to Invoice lines:

• Item, Description, GL Acc. No: Select the Item from the Inventory Product (Item) file using the dropdown. This autofills the Description and default GL Code but you can override these here.
• BI Code: If you are using Extended Business Analysis then select a BI Code. If it defaulted from the Invoice Header, you can override it here if desired.
• Qty: Enter in the Quantity of Product invoiced by the Supplier. The Unit Price defaults from the Last Cost field on the Inventory Master Record. If the Supplier’s (Vendor’s) Invoice has a different Price, you can use that instead if acceptable.
• VAT: The VAT (Tax) Rate is either inherited from the Invoice Header (which in turn comes from the Supplier (Vendor) Master Record) or from the VAT (Tax) Rate associated with this Item on the Inventory file. In both cases you can override it here if the Supplier’s (Vendor’s) Invoice differs.
• Discount: If there is a Discount Percentage on the Supplier Record, then this will be the default. You can either accept this Rate and Calculation or you can input a fixed amount in the Disc. Amount field and the system will calculate the percentage. If the Supplier (Vendor) hasn’t allowed Discount (or has given a different amount) and this is acceptable, then you can enter it in the “Disc. Amount” field. The VAT (Tax) and the Line total will then be recalculated.
• Line Note: You can add a Note to each Order Line.
• Exchange Rate, Line Total:  If the Supplier is a Foreign Currency Supplier, the Exchange Rate will appear. This will be used to calculate the base currency value of the invoice when posted. Invoice Line Total takes account of this rate. However, you can still override the foreign currency Price to match the Supplier’s (Vendor’s) Invoice for each Line. The totals for both Currencies will appear at the bottom of your system Invoice.
  
  

Adding more lines

If there are additional lines on the Supplier’s (Vendor's) Invoice, such as Carriage or Duty, then you can add  a new Service Type to your Item/Service Table: 

1. Press the Enter key to create a new line. 
2. From the Item dropdown, click +Add New Item... This will open the Item/Inventory maintenance screen.
   
   
    
3. Complete the details as necessary.

If the extra charges are related to a particular Line on the Invoice, then you can add a new line with the same Item Code, a quantity of 0.00, and put the extra charge under Net. This additional cost is used to calculate the Item's overall Average Cost.

4. Click Save.
   
   

Additional Details tab

1. In the Additional Details tab, complete the following fields as necessary:

• Discount: This displays the default discount associated with the Supplier. You can override it here if needed. This value can in turn be overridden on at line level in the Invoice details tab. If you make changes to the Supplier Master Record defaults, any prices and quantities recorded prior to modification would need to be re-entered to include this.
• Payment Method: This specifies the means by which this invoice will be settled by your company. If you select a payment method that has been set up as an 'online' payment method in the codes maintenance screen, then related invoices will be available to pay via Bulk Payments.
• Forecasted Payment Date: This is calculated (at the end of all Invoice Lines) based on your Company’s payment history with this Supplier (Vendor). You can change this date using the dropdown. The system uses Cash Flow Forecasting to predict when this Invoice will be paid.
• Note Printed on Invoice: Record a note here that will be printed on the header of the invoice for Supplier/vendor to view.

2. Click Save.
   
   

Notes tab

1. In the Notes tab, you can enter internal Notes for the Supplier (Vendor) Invoice.
   
   
    
2. Click Save.

See:

How do I Implement Extended Business Analysis?‍ 

Editing a Purchase Invoice

You can amend an Invoice any time prior to Posting.

1. Go to Purchases > Item Invoices.
2. In the grid, click the Invoice No. to open it.
   
   
    
3. In the Purchase Invoice screen, you can do any of the following:

• Delete Lines
• Add new Lines
• Change Quantities, Prices, Vat (Tax) Rates
• Add Line Notes
• Amend General Ledger Codes and BI Codes. 

4. Click Save.
   
   

Posting Invoices

Invoice Status

The status in the invoice entry screen is generated automatically by the system. 

• New: For a new invoice that has not been processed.
• Processed: When the invoice has been saved but not yet posted to the ledger. It is available to view as well as attach Documents and Notes. It has not yet been posted to the Supplier’s (Vendor’s) Account in the Creditors Ledger or to the General Ledger. However, Quantities and Costs have been updated in the Inventory Management system. If you delete Lines from the Invoice now, these Quantities will reverse.
• Posted: Means that the Supplier's (vendor's) account has been updated, and the general ledger has been updated with the values for this invoice. Note that payments can only be made against posted invoices.

Posting the Invoice to the Ledgers

1. Go to Purchases > Item Invoices.
2. In the grid, find the Invoice.
3. Under Post, tick the selected Invoices and then click Post Selected.
   
   
    
4. The Invoice will now disappear from this Grid and will appear in the Supplier’s (Vendor's) Account Grid which you can access by clicking on the Balance field.
   
   

See:

How Do I Amend, Cancel or Delete Transactions?‍ 

Searching for Item Invoices

1. Go to the Purchases > Item Invoices.
2. Enter your search criteria in any of the column headers. 
3. This screen defaults to Processed Invoices, but you can clear this by clicking Clear next to the Filter.
   
   

Duplicating Item Invoices

1. Go to Purchases > Item Invoices screen.
2. Find the Invoice.
3. Under Actions, go to Duplicate. Alternatively, click on the Invoice No. to open it, then click Duplicate. 
4. Modify the Invoice as desired.
5. Give it a new Invoice No. and click Save.