External Supplier Invoices on File

Description of process

The External Supplier Invoices on File process contains windows for updating the supplier ledger with supplier invoices created in an external (non-IFS) system. There are windows for correcting, checking, and transferring invoice information to the supplier ledger, as well as for creating vouchers for transfer to the hold table in IFS/Accounting Rules.

Before external interfaces are used, a number of parameters must be defined. These parameters include defining a default load type, whether change or cancellation of invoices is permitted, whether the check and create steps should be executed directly and whether partial creation of supplier invoices is allowed. This BDR (Basic Data Requirement) for supplier invoices on file is handled within the Enter Supplier Invoice Parameters activity.

When external suppler invoices are loaded into IFS/Invoice, the batch is given a load identity. All invoices belonging to the batch are marked with the same load identity. The invoices within a batch belong together until they are transferred to the supplier ledger. This means that all invoices within a batch must be checked and verified to be correct before transferring to the supplier ledger.

Note: The partial creation parameter specifies whether the system can automatically create supplier invoices from all external supplier invoices within the load that are considered correct even if some external supplier invoices within the load are incorrect. (The system will create invoices for those that are correct and register an error code against those invoices that are incorrect. The External Supplier Invoices page displays the status of each invoice in the load.) If you do not allow partial creation, the invoice creation process will be interrupted as soon as the system encounters an incorrect external invoice within the load.

When invoices are transferred via EDI, the EDI message ID will be set as load ID in the external interface. This means that each invoice is checked and created separately. A supplier invoice can be sent twice and is therefore accepted twice in the external interface, the first time without postings to be preliminarily posted and a second time with postings to be finally posted.

External supplier invoices must exist in text files to be used with IFS Cloud, and you will load the file into IFS Cloud by using an external file assistant. During the assistant process, you will specify the type of layout the file uses. Layout types are defined as templates that specify whether a separator character is used within the file, what date format is used, etc. One of the defined layout types can be specified as the default. During the wizard process, you also can handle the Check and Create Voucher steps, if required.

Invoice information consists of the following levels:

Invoice header information.
Invoice line information, one or more per invoice header. Line information containing part number, description, invoiced quantity, and invoiced unit of measure can be handled, and the created invoice will contain lines with this kind of purchase order related information .
Tax lines.
Invoice item posting information, one or more per invoice line. Each invoice posting is always logically connected to one invoice line.

Authorizers

After invoices are entered, they must be authorized for payment. The authorization function is included in the sub processes.

If the Supplier Invoice Authorization only by separate function in Enterprise/Company//Invoice is selected, authorization can only be made in the Authorize Invoices for Payment page. If not, authorization can also be made in the Manual Supplier Invoice page, the Installment Plan and Discounts dialog.

Invoices can be automatically authorized when they receive status finally posted or when posted if the Automatic Payment Authorization is set to At Final Posting or When Posted in Enterprise/Supplier/Invoice. In this case, the Supplier Invoice Authorization only by separate function in Enterprise/Company/Invoice must not be selected. The authorization can be removed after the invoice is saved.

The following authorization methods can be used:

Authorize with separate function, authorizer connected to user ID.
Automatic authorization at final posting.
Automatic authorization when posted.
Combination of invoices for some suppliers being automatically authorized at final posting, and others being authorized with a separate function.

Zero Invoicing

You can load external supplier invoices with a gross amount of zero (0). There invoices will automatically advance to the PaidPosted state and a zero payment will be created. These invoices will be automatically authorized regardless of the supplier setting.

Altering or canceling a supplier invoice

For a supplier invoice, details that do not involve alteration of postings can be changed, e.g., payment terms and authorizer. To alter details such as amount, invoice number, or supplier, you must cancel the invoice and then re-enter it. The invoice can be canceled only if it is unpaid. When cancellation has taken place, a voucher is created that reverses the postings previously made for the invoice. When this is complete, a dialog box is shown with a voucher number for the voucher.

The invoice is then checked as canceled in the analysis pages. The invoice number can be reused, i.e., a new invoice can be entered with the number of a canceled invoice. This means that analysis pages will show both invoices having this number, but with different versions, one canceled and one current. Note: It is possible to copy manually entered postings from the canceled invoice when entering a new invoice.

When canceling an invoice matched with purchase order lines, all lines matched or connected to this invoice are rolled back. Depending on the type of matching used, the quantity to invoice is treated differently.

If the matching receipt purchase function was used, the quantity to invoice is reduced with the corresponding quantity.
If the price adjustment purchase function was used, the quantity to invoice is left unchanged.

Before you start entering information, check that Basic Data Required (BDR) has been set up as per instructions in Define Financials Basics, the Set up Basic Data Accounts Payable process.