Verify and Adjust Invoice Lines for Invoice Matching

This document explains how to ensure the accuracy of invoice lines that are based on the selected goods receipt lines or purchase order lines. It also explains how to make any needed adjustments.

The activity can be completely automated, depending on your settings and from which program the selection is made.

Note: You can cancel the invoice matching in 'Supplier Invoice. Match GR Line' (APS360) at any time by pressing function key F18='Cancel voucher'. If the matching was started via (APS100), the invoice is deleted. If the matching was started via (APS110), all invoice lines that have not already updated Accounts Payable are deleted.

Outcome

Account entries offsetting the goods receipt lines are created and included in the preliminary voucher.

The invoice lines created as a result of the purchase order/supplier invoice matching are reviewed, approved, and assigned a voucher number. Charges are added or adjusted. If the matching resulted in variances outside allowed limits, a debit note or debit note request is created.

The preliminary voucher updates the financial system when the entry program is exited.

Before you start

Workflow

Follow these steps

Review invoice lines

  1. To reach 'Supplier Invoice. Match GR Line' (APS360/B), select one of the following alternatives:

    • In 'Supplier Invoice. Record' (APS100/E), enter purchase order number and workflow 5 in the 'Next manual step' field and press Enter
    • In 'Supplier Invoice. Recode' (APS110/B), enter workflow 4 in the 'Next manual step' field and select option 11 = 'Control invoice' for the invoice. (This applies if alternative 1 or 2 is selected in the 'Accounting date – display/selection' field in (APS110/P).)
    • In 'Supplier Invoice. Recode' (APS110/B), select option 11 = 'Invoice control' for the invoice. In (APS112/E), enter workflow 4 in the 'Next manual step' field and press Enter. (This applies if alternative 3 or 4 is selected in the 'Accounting date – display/selection' field in (APS110/P).)
    • In 'Supplier Invoice. Select Transactions to Match' (APS351/B) or 'Supplier Invoice. Select to Match' (APS350/B), press F14 to create the invoice lines and activate (APS360).
  2. If applicable, adjust the panel sequence in (APS360/B).

    This instruction is based on panel sequence EF12.

  3. Select one of these information views:

    • 1 = Positioning on PO number and line number. The invoice price can be changed.
    • 2 = Positioning on all statuses. The invoice price can be changed.
    • 11 = Same as type 1 except that the invoice net amount can be changed instead.
    • 12 = Same as type 2 except that the invoice net amount can be changed instead.

      Invoice quantity, invoice discount and additional costs can be changed regardless of the information view selected.

  4. Review the information on the panel and compare it if possible with the physical invoice in your hand. Verify that the information is correct. Use the 'Selection option' field to control which lines are displayed, when needed:

    • 1 = All lines, regardless of status
    • 2 = Only lines that contain an error or are not approved (status 1 or 2)
    • 3 = Same as alternative 2, except that lines that are not checked are displayed as well (status 0).
  5. Select any of these alternatives depending on what additional information you wish to review:

    • To display basic line data (such as receiving number, item and VAT code), select option Display for a line to activate the E and F panels.
    • To display the goods receipt lines used as a basis for the invoice lines, press F20 to activate (APS351).
    • To display the PO lines, select option 13='PO lines' to activate 'Purchase Order. Open Lines' (PPS201/B).
    • To display the PO header, select option 14='PO header' to activate 'Purchase Order. Open' (PPS200/B).
    • To display the PO line transactions, select option 15='PO transactions' to activate 'Purchase Order. Display Line Transactions' (PPS330/B).
    • To check the status of the invoice line, review the four-digit number in the status column.

Adjust invoice line amounts or quantities

  1. If the invoice information on the panel differs from the physical invoice, adjust the values on the panel so they correspond to the physical invoice. Select one of these alternatives:

    • Adjust the invoice quantity, price, discount, or line charge in the displayed fields and press Enter.
    • To be able to review more information on statuses, quantities and variances while adjusting the same values or adjust invoice line values not displayed on the B panel, select the Change option to activate the E and F panel.
    • To work with charges, continue with the next step.

Add or adjust charges

  1. In (APS360/B), select one of the following alternatives:

    • Add a charge manually in the 'Additional cost' field

Distribute charge automatically

  1. To distribute a new charge or variance automatically and equally to all invoice lines, press F14 = 'Distribute variance' in (APS360/B).

  2. In the dialog box displayed, change the proposed total amount to distribute, if necessary, enter a two-digit operator, and (if the invoice lines refer to several purchase orders) a range of purchase orders that should be affected. Press Enter.

    For a description of the dialog box, see the description of the Operator field in the Parameters to Set table.

Work with order charges proposed from the PO

  1. In (APS360/B), press F7 to activate 'Supplier Invoice. Match Order Charges' (APS363).

  2. In (APS363/B), select information view 1 = Positioning on sequence number of the costing element that represents the type of charge.

    Information view 2 is used to position on the account entry status. This means that you would normally use this information view if any incorrect account entries were created before creating the voucher in (APS360).

    For information on the use of costing elements, see Introduction to Purchase/Distribution Costing.

  3. Select one of these alternatives:

    • Adjust the order charge directly on the B panel and press Enter.
    • Select option Change for the charge and enter the order charge and adjust the VAT code, when necessary, on the E panel. Press Enter.
    • Add a new charge.
  4. To add a new charge, enter a sequence number and a purchase costing element. Click New.

  5. On the E panel, enter the order charge and, when applicable, the VAT code. Press Enter to return to (APS363/B).

  6. Press F3 to return to (APS360/B).

Work with line charges proposed from the PO

  1. In (APS360/B), select option 11='Line charges' for a line.

  2. In (APS361/B), select information view 1='Positioning on sequence number of the costing element'.

    Information view 2 is used to position on all statuses. This means that you would normally use this information view if any incorrect account entries were created before creating the voucher in (APS360).

  3. Review the charge values per costing element: Invoiced quantity, invoice price expressed in the PO price per U/M, and invoiced net amount.

  4. To change the VAT code or labor code/business type (for trade statistics purposes) for a charge or update the 'Invoice charge quantity' field, select option Change for a charge and make the adjustments on the E panel.

    In (APS361/E) you can also review quantities, amounts, variances, and statuses.

  5. In (APS361/B), select one of these alternatives:

    • To block a charge from being included in the invoice matching, select option 6='Hold' for it to change the Select status.
    • If you know for certain that the charge should not be included, delete it with option Delete.
  6. To approve all or some charge values, select one of these options:

    • Option 7 for approving the quantity
    • Option 8 for approving the invoice price
    • Option 9 for approving the entire charge line
    • Option 10 for changing the line status to Not approved.

      You can use the same options on (APS360/B). If a value in the charge line is not approved when the voucher is created in (APS360/B), the entire line is considered as not approved.

  7. Return to (APS360/B) by pressing F3.

Approve invoice lines

  1. In (APS360/B), press F8 = 'Check invoice' to check the line amounts and quantities against the allowed variances defined in 'Settings – Supplier Invoice Match' (APS900).

    A message is displayed informing you about how many lines are approved or not approved after the check.

  2. If any line is not approved, check the four-digit line status to find out the reason for this.

  3. Select one of these alternatives:

    • If all lines are approved, continue with Create Account Entries.
    • If a line is not approved and you want to review the line further and perhaps adjust it, return to Review Invoice Lines.
      Note: The F panel in (APS360) displays information about reported price/quantity for the goods, stored price and quantity for the goods and previously invoiced price/quantity, the variances in quantity and price discovered during matching and also the allowed variances in price and quantity.
    • If a line or lines are not approved and a debit note should be created, continue with Create Debit Note.
    • If you want to override a non-approved line and approve it, although the variances are higher than allowed, use any of the approval options listed for the steps Work with Line Charges Proposed from the PO to change the approval status. You can also use function key F16 (approve all lines) or F17 (change status to not approved for all lines).
      Note: An invoice with status 2 can only be approved manually by using option 7, 8 or 9, or function key F16. That is, the status cannot be updated using function key F8 or changing any line values.

Create account entries

Note: If the approval check with function key F8='Check invoice' was successful, account entries have already been automatically created, if the 'Automatically create account entries' check box in (APS360/P) is selected.

In (APS360/B), press F10='Create account entry'.

A message is displayed informing about whether the preliminary account entries created are correct.

Create debit note

Create a debit note for the variance in price and/or quantity by using option 16='Debit notes' for the unapproved line(s). Refer to Create Debit Note for Supplier Invoice for further instructions.

Correct incorrect account entries

Note: If account entries with incorrect accounting strings were created, select option 12='Account entries'.

You must do this to be able to create a voucher.

  1. In 'Supplier Invoice. Change Account Entries' (APS362/B), select one of these sorting orders (optional):

    • 1 = Positioning on accounting information type
    • 2 = Positioning on purchase order number and line number.
  2. Select a selection option (optional):

    • 1 = All accounting lines, regardless of status
    • 2 = Only incorrect accounting lines, that is lines with status 1.
  3. Select option Change for an accounting line to correct.

  4. In (APS362/E), press Enter to retrieve an error message indicating the type of error (for example, invalid VAT code or accounting identity).

  5. Correct the error. Press Enter to return to (APS362/B).

  6. Press F3 to return to (APS360/B).

    The account entry status is automatically updated for each line. You do not have to press F10 again.

  7. If the amount to distribute in the header is not zero, post the remaining variance by selecting one of these accounting options in the adjacent field:

    • 17 = Clearing account
    • 30–98 = User-defined accounting options.

      You cannot create a voucher unless the amount to distribute is zero.

      Note: If alternative 1 or 2 is selected in field 'Automatically create account entries on clearing account' (APS905/P), the amount left to distribute is posted when you use F3 to close the program, either automatically or by accepting a proposal about automatic distribution.
  8. If the amount to distribute is zero, continue with Assign Voucher Number to Invoice Lines.

Assign Voucher Number to Invoice Lines

In (APS360/B), when correct preliminary account entries are created and the amount to distribute is zero, press F3 to exit the program. One of these scenarios will happen:

Parameters to set

Program ID/ Panel

Field

The field indicates...

Statuses

(APS360/B)

Invoice status

... the combined invoice header status, that is, the status of the line with the lowest status in each category presented together as a five-digit number.

Alternatives

See the fields 'Status, line' and 'Status – account entries' below.

Meaning of Positions

Position 1 = Invoice line quantity

Position 2 = Invoice line price

Position 3 = Invoice line charge per quantity

Position 4 = Invoice line charge based on price

Position 5 = Account entries.

(APS360/B,F)

Line status

… the status of each invoice line.

On the B panel, the status is presented as a combined, four-digit status. On the F panel, the statuses are listed separately.

The four-digit status is interpreted like this:

Position 1: Invoice quantity

Position 2: Invoice line price

Position 3: Invoice charges quantity

Position 4: Invoice charges price.

Alternatives

0 = The line/charge is not checked against the receipt line/charge

1 = The line/charge is check but is not approved

2 = The line/charge is manually defined as not approved by having used option 10 or function key F17

3 = The line/charge is approved

* = There is no quantity to check for this line. (Goods receipt is not done. The check will be done when the goods are received.)

(APS360/E)

Status – account entries

... how account entries have been created for a line, expressed as a status.

Alternatives

0 = Not created

1 = Account entries are created but the accounting string used is incorrect

2 = Account entries are created

3 = The account entries are transferred to the work file (FCR040) and a voucher number is created

4 = The account entries have updated the general ledger.

(APS361/B,E)

Select status

... whether the proposed line charge should be included in the invoice matching.

If you know for sure that the charge should not be included, you can delete it. Otherwise you can temporarily block it by using option 6 = Hold.

Amounts

(APS360/B)

Invoice amount

... the total line amount, that is, quantity multiplied with the invoice line price.

(APS360/B, F)

Invoiced net amount

... the net invoiced amount for the invoice line. This is the invoiced quantity multiplied with the invoice price for the PO price per U/M.

Depending on which of the fields for price, quantity, discounts and net amount are entered, the remaining values are calculated according to the following:

* If the invoice price and net amount are specified, the quantity is calculated automatically

* If the quantity and the net amount are specified, the price is calculated automatically.

(APS360/B)

Amount to invoice

... the remaining amount to be distributed to the invoice lines, expressed in the invoice currency.

This amount is the total amount minus any order charges, line charges, additional costs and distributed invoice line amount.

(APS360/B)

Amount to distribute

... the amount for which no account entries are created, expressed in the invoice currency.

This amount is the remaining invoice amount to be posted. It is only reduced when correct account entries are created. The amount must be equal to 0 before the program can be exited and a voucher is created.

You can post any remaining amount by using an accounting option.

(APS360/B)

Invoice line discount

... the discount deducted from the invoice line price.

(APS361/B)

Invoice price – PO U/M, currency

... the invoice price expressed in the PO price per U/M.

(APS361/E)

Received cost amount

... the amount of the received PO price multiplied with the received quantity.

(APS361/E)

Debit note amount

... the debit note price multiplied with the debit note quantity.

This value is only displayed if a debit note was created for the specific invoice line.

(APS361/E)

Variance amount

... the difference between the invoice net amount and the received amount.

Cost and charges

(APS360/B)

Order charges

... the total amount of all invoice charges, that is, charges that are not specific to a particular invoice line.

This is the total of all charges accumulated per purchase costing element in 'Supplier Invoice. Match Order Charges' (APS363).

Any charges included in the purchase order(s) for the received goods are automatically proposed. You can also enter charges included in the invoice.

(APS360/B)

Invoice line charges

... the same as above but for particular lines instead.

This amount is the total of all line charges accumulated per purchase costing element in 'Supplier Invoice. Match Line Charge' (APS361).

In contrast to the order charges, these charges update the average cost of the items included in each invoice line.

(APS360/B,F)

Additional cost – currency amount

… any additional costs charged by the supplier, expressed in the invoice currency. This could refer to a charge added by the supplier after the purchase order was created, for example.

An extra cost or charge can be entered as a new line charge in (APS361). However, a faster way of entering the charge is to record it as an additional cost in (APS360), since all values then can be entered in the same panel.

Additional costs are posted using accounting rule PP20–228. The costs update the average cost of the item.

Types of Lines, receipts and account entries

(APS360/B,E)

Invoice line type

... what the line represents.

Alternatives

1 = The line has been matched to a goods receipt line (goods arrived before invoice)

2 = The line has been matched to a PO line

3 = The line represents a difference between the received cost amount for the goods receipt and the invoiced cost amount

4 = The line has been matched to a goods receipt line (goods arrived after invoice)

5 = The line represents the difference between the invoiced cost amount and the received cost amount

6 = The line represents a debit note.

An invoice line of …

… type 1 is created when a goods receipt line is selected during invoice matching (standard procedure).

… type 2 is created when a purchase order line is selected during invoice matching. This procedure can be used when the invoice is received before the goods. The invoiced amount is accounted using accounting rule PP20-235 (Invoiced, not goods received). This account entry is reversed when the goods are received.

… type 3 is created using option 6 or function key F14 in (APS370) to report the receipt line as completely matched, although a difference remains.

… type 4 is created when the goods arrive after the invoice and an invoice line of type 2 exists.

… type 5 is created when you select option 20 in (APS360) to report an invoice line of type 2 as completely matched, although a difference remains between what is invoiced and what is received.

… type 6 is created when a debit note invoice updates account payable. This is done automatically when you exit (APS100) if the 'Auto update AP' check box is selected in (APS060). You can also carry out the update manually by selecting option 9 in (APS050).

(APS360/B,E)

Receipt type

... the type of transaction on which the invoice line is based.

Alternatives

0 = No goods receipt is reported for the line; a PO line is selected instead.

1 = Standard goods receipt transaction created at reporting in 'Purchase Order. Receive Goods' (PPS300)

2 = Claim transaction.

(APS360/B),

(APS361/B),

(APS363/B)

Status – account entries

... how account entries have been created, expressed as a status.

Alternatives

0 = Not created

1 = Account entries are created but the accounting string used is incorrect

2 = Account entries are created

3 = Account entries have been transferred to the FCR040 work file and a voucher number is created

4 = The general ledger is updated. This status is set when the entry program is exited.

(APS362/B)

Accounting information type

... the type of account entries created for the invoice matching.

Refer to How M3 Is Affected inMatching Supplier Invoices to Purchase Orders.

Quantities

(APS361/E)

Reported quantity

... the quantity reported as received in 'Purchase Order. Receive Goods' (PPS300).

(APS361/E)

Stored quantity

... the quantity that has been put away.

This value is displayed for information purposes. It is not included in the check against allowed variances in 'Settings – Supplier Invoice Match' (APS900).

(APS361/E)

Invoiced quantity

... the total quantity reported as invoiced per purchase order line. This value is proposed from the goods receipt or the PO line, depending on whether the goods is reported as received.

(APS361/E)

Invoice charge quantity

... whether the line charge(s) per quantity is dependant of the quantity of the invoice line. This is defined per line charge.

If alternative No is selected, the charge per quantity is not affected if the invoice line quantity is changed.

If alternative Yes is selected, the charge is automatically adjusted. This is the most common procedure.

Example

You have ordered and received 10 PCS. However, the first invoice is for 7 PCS but the freight charges included apply to the entire order of 10 PCS. Therefore, you select alternative No for the line charge so that it will not be affected when you report the quantity 7 and then quantity 3 in (APS360).

Variances

(APS361/E)

Quantity variance

... the difference between the received quantity or the PO line quantity and the invoiced quantity.

(APS361/E)

Allowed quantity variance

... the allowed quantity variance as defined in (APS900).

(APS361/E)

Price variance

... the difference between the received price or the PO line price and the invoice price.

(APS361/E)

Allowed price variance

... the allowed price variance as defined in (APS900).

(APS361/E)

Variance amount

... the quantity variance multiplied with the price variance.

Dialog box

Dialog box Operator

... an operator that defines how a variance is distributed to the selected invoice lines. The operator is used in a separate dialog box displayed when the user selects F14 = 'Distribute variance' in (APS360/B).

Meaning of First Digit

The first digit in the operator indicates the amount category to which the amount is distributed.

0 = Additional cost for invoice line

1 = Net amount for invoice line

2 = Net amount for invoice line charges

These amount categories are displayed in separate fields in (APS360/B).

Meaning of Second Digit

The second digit in the operator indicates how the amount is distributed:

1 = Equal distribution

2 = Proportional distribution based on the net amount of the invoice line

3 = Proportional distribution based on the quantity of the invoice line.

Example

If you select operator 11, the amount you enter is distributed equally to the net amount for each invoice line.

Note: You select invoice lines by entering a range of purchase orders and/or selecting up to two purchase costing elements (each one representing a type of charge) in the dialog box. If you do not enter any of these values, all invoice lines and invoice line charges are selected.
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