Purchase Invoices

Purchase Invoices create the transaction that will generate payment to the vendor for supplying goods to the Company. There are several types of invoices that are processed based on the transaction type. With the exception of Invoice Only, all other purchase invoices require a purchase order to be processed.

Depending on the Price Mode, the amount on the invoice may or may not be modified. If the price is modified on the purchase invoice, the difference between the received amount and the invoice amount will be coded to a purchase price variance account.

The purchase invoice must be in approved status prior to being posted. Security can be established for the approval flag so that only users with permissions may mark the invoice as approved. As well, there are two tolerances available in the registry to automate the process.

• Payable Invoice Tolerance Amount - the tolerance is established as a value amount and generally established as a very small amount to cover any rounding differences that may occur between the system and vendor calculation. This tolerance is established for the total of all invoice lines as compared to the Invoice Amount Payable to the vendor. The invoice will not post if this tolerance is exceeded.
• PO Percent Approval Threshold - this tolerance is established by product type. The value is entered as a percentage and defines the acceptable tolerance for the difference between the vendor invoice amount and calculated received amount. This tolerance is calculated by line and the purchase invoice line will be automatically approved if the difference falls within the acceptable amount. Otherwise, the invoice must be manually approved for posting.

What type of invoice is required?

• PO Invoice - invoice for a received products

• Split PO Invoice - multiple invoices for a single receipt

• Freight Invoice - invoice for a freight charge

• Invoice Only - miscellaneous invoice for fees such as utilities and services

• Prepaid  - prepay for product before receiving

• Self-Billing - payment when supplier does not provide invoice

• Credit or Debit Memo - adjustment to a previously posted purchase invoice

• Add-On Invoice - rebate type payments