Processing purchase invoices

Recording and processing a purchase invoice in Financials consists of these steps:

  1. Optionally record receipt of the purchase invoices.
  2. Confirm the received invoices if required, and register the purchase invoices.
  3. If a hold reason is linked to the invoice, remove the hold reason.

  4. Do one of the following:

    • For cost invoices, enter the transaction lines.
    • For purchase invoices, match the invoices to the related receipts, purchase orders, or freight orders.
  5. Display the error log and solve the matching errors.
  6. Approve the price differences.
  7. Display the error log and solve the approval errors.
  8. If payment approval is required, authorize the invoice for payment.
Note: If a receipt schedule is linked to the terms of payment of the invoice, you perform the described actions on the receipt schedule lines rather than on the invoice. For more information, refer to Payment schedules – overview.

You can process individual purchase invoices manually or you can match and approve ranges of purchase invoices in a background job.

For the postings created during each step, refer to the User's Guide for Financial Integration and Reconciliation Transactions.

If you use self-billing, you agree with your suppliers that they do not send you invoices, and you automatically generate the required purchase invoices. The procedure for self-billed invoices is similar to the purchase invoices procedure.

Invoice status

The invoice status reflects the various stages of the process, and can change as follows:

  1. Draft (optional) --> Registered
  2. Registered--> Matched if you have partially or fully matched the invoice
  3. Matched--> Approved
  4. Approved--> Matched if you unapprove the invoice.

You can also approve an invoice without matching it first. If you unapprove the invoice, the status becomes Registered.

1. Receiving and confirming the purchase invoices

Before you register received purchase invoices, you can optionally record the receipt in the Received Purchase Invoices (tfacp1500m000) session. LN then sets the status of the invoice to Draft.

For example, if several employees or departments must confirm the invoices before the invoices are processed, you can first record receipt of the invoice. For more information, refer to Confirmation of received purchase invoices.

2. Registering purchase invoices

If you register a purchase invoice, LN creates an open entry in Accounts Payable and a posting to the General Ledger.

To register a purchase invoice, you can enter a new purchase invoice in this session or you can copy a received purchase invoice from the Received Purchase Invoices (tfacp1500m000) session. Complete these steps:

  1. Start the Transactions (tfgld1101m000) session.
  2. Select or create a transaction batch.
  3. Add a record to the batch, using a transaction type of the Purchase Invoices transaction category. Save the record.

  4. Select the record and from the appropriate menu, select Transaction Entry. The Purchase Invoice Entry (tfacp2600m000) session starts.

  5. Do one of the following:

    • To enter a new purchase invoice, enter the invoice details.

    • To register a Draft invoice:

      1. In the Purchase Invoice Entry (tfacp2600m000) session, from the appropriate menu, select Copy Received Purchase Invoices. The Copy Received Purchase Invoices (tfacp1210m000) session starts
      2. Select the invoice to be copied and click OK. LN copies the invoice details to the Purchase Invoice Entry (tfacp2600m000) session.

When you enter an invoice in the Purchase Invoice Entry (tfacp2600m000) session, LN sets the Invoice Status field to Registered.

If you copied a received invoice, in the Received Purchase Invoices (tfacp1500m000) session, LN sets the status of the copied invoice to Registered. You cannot copy an invoice multiple times.

If you defined a general default hold reason or a default hold reason for the invoice-from business partner, LN blocks all registered purchase invoices for automatic processing.

How you continue the purchase invoice procedure depends on the type of invoice that you select in the Invoice Type field of the Purchase Invoice Entry (tfacp2600m000) session. These invoice types exist:

  • Cost Invoice (purchase invoices for which no related purchase orders exist)
  • Invoice Related to Purchase Orders
  • Invoice Related to Landed Costs
  • Invoice Related to Freight Orders
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