Recurring invoice transaction

When you pay a recurring invoice, Payment Closing (AP170) or Recurring Invoice Update (AP193) create another invoice to the vendor for the same amount. The next invoice is scheduled for payment based on the defined frequency of payments. Because rent payments are usually paid on a schedule for a fixed amount, they are a good example of how you can use the recurring invoice feature of the Accounts Payable application.

This example shows how the system processes a recurring invoice.

Invoice number	1A
Invoice amount	100.00
Invoice date	01/01/00
Due date	01/05/00
Posting date	01/31/00

When you release this invoice into the system as a recurring invoice, the invoice number becomes 1A-1 because the system assigns a 1 to the invoice suffix field. Assuming you have set up the invoice to recur weekly, Payment Closing (AP170) creates this invoice with a released status.

Invoice number	1A-2
Invoice amount	100.00
Due date	02/01/00
Posting date	02/05/00

Notice that the system added 1 to the Invoice Suffix field to make this recurrence a unique invoice. The system also increments the invoice due date, posting date, invoice date, and discount date by the frequency of the recurrence. All other parameters are the same as the original invoice.

The invoice continues to recur until the system has created the number of defined recurrences. You can set up an invoice to recur weekly, monthly, at the end of the month, quarterly, semiannually, or yearly. After the system creates a new invoice recurrence, you can change any of the dates and the system continues the same frequency based on the new dates.