Self billingFor each purchase order header you can define whether self billing is used. Self billing is typically used if you have:
The supplier does not need to send an invoice. Instead, you use the self-billing procedure to automatically generate invoices for these goods. If the self-billing procedure is used, LN creates, matches, and approves invoices automatically when goods are received. This is all done in the Accounts Payable module. Self-billed internal invoices For invoiced goods transfer between warehouses of separate financial companies, it is important that for every sales invoice a corresponding purchase invoice is available. Otherwise, reconciliation is not possible. To ensure that LN creates an internal purchase invoice for every internal sales invoice, you can select the Generate Invoices with manually entered Invoice Date check box in the Generate Self-Billing Purchase Invoices (tfacp2290m000) session. If you select this check box, LN ignores the composing criteria for sales invoices that you set up in Accounts Receivable and in Invoicing, and creates an internal purchase invoice for every internal sales invoice. Self-billing procedure The self-billing procedure is similar to the procedure for manually created purchase invoices, and consists of these steps:
Posting information For a self-billing document, the same postings are created as for manually registered invoices related to orders that you can enter in the Purchase Invoice Entry (tfacp2600m000) session. For each invoice line of the generated invoice, LN sets the level of tax calculation to Transaction Line. For a debit memo, the same postings are created as for registered credit notes related to purchase orders. The transaction type category is Purchase Credit Notes. For each line of the generated debit memo, LN sets the level of tax calculation to Transaction Line. The posting on the control account usually is a credit posting for a self-billing invoice, or a debit posting for a debit memo invoice. This depends on whether the amount is positive or negative and whether the transaction type allows the posting of negative amounts and negative amounts for credit notes. Rules for the generation of self-billed
invoices In Procurement, the self-billing procedure is controlled by the following fields in the Purchase Order Lines (tdpur4101m000) session:
These fields are defaulted as follows:
Non-purchase self-billed invoices For the following types of internal invoices, which are also created by processes of the Accounts Payable module, you cannot generate self-billed invoices with the Generate Self-Billing Purchase Invoices (tfacp2290m000) session:
Invoice dates and document dates In the Generate Self-Billing Purchase Invoices (tfacp2290m000) session, you can enter the data for the batch that contains the self-billed invoices. The financial period information that you enter is used for all the transactions in the process. If you select the Generate Invoices with manually entered Invoice Date date check box, you can enter the invoice date as well as the transaction entry date and the financial periods for the batch. The invoice date must be the same or later than the Invoice Cut-off Date. Note If you register the receipts of the purchase orders, the invoice accrual balance increases and if you approve the invoice, the invoice accrual balance decreases. If you specify an earlier period for the self-billed invoices than the period in which the receipts were registered, the invoice accrual account is decreased before it is increased. To avoid this type of discrepancy, the Transaction Entry Date and the Invoice Date if you supply a date, must be the same or later than the Invoice Cut-off Date. You can still manually change the period information, and you can also change the period balance if this is required. If you manually approve an invoice in the Match/Approve Purchase Invoices (tfacp2107m000) session, the Posting Data for Approval Transactions (tfacp1141s000) session starts in which you can change the period information. The following rules apply to the transaction date of all transactions and the document date of the invoice:
Rate information For a transaction, LN determines the currency rate to be used according to the rate information. The rate information consists of these details:
In addition to the rate information, the currency rate used for the generated invoice and the postings in the general ledger depends on the value of the Currency Rate Determiner of the purchase order. The rate determiner is a mandatory compression criterion, therefore, the rate determiner is the same for all the order lines combined on the invoice. If the value of the rate determiner is other than Document Date, each related order line is posted with its own rate information on the invoice accrual account. In this case, the rate information of the order line is the same as the rate information on the purchase order header. Consequently, the involved invoice accrual account is increased by the receipt and decreased by the generation of the self-billed invoice with the same rate information. Therefore, no currency differences postings occur in the integration transactions. The rate information of the invoice and the control account posting is the average rate of all the related invoice accrual postings. If the rate determiner is Document Date, all the postings are made with the currency rate that is effective on the document date of the invoice. Consequently, every invoice accrual posting can create a Currency Difference entry in the integration transactions. The Currency Difference entry results from the difference between the purchase order header rate information and the rate information effective on the invoice document date.
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