Self billing

For each purchase order header you can define whether self billing is used.

Self billing is typically used if you have:

  • A contract with the supplier for the price of the goods you are buying.
  • An agreement with the supplier that you will pay for the goods without receiving an invoice for them.

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:

  1. You register the receipt of the goods in Warehousing.
  2. In the Generate Self-Billing Purchase Invoices (tfacp2290m000) session of Accounts Payable, you generate the purchase invoice documents. LN creates an open invoice entry.
  3. LN automatically matches and approves the invoice documents.
  4. LN creates the postings for the generated purchase invoice to the General Ledger.

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.

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