Managing Batch Supplier Invoices

Outcome

• The batch supplier invoices are specified as approved for payment or not approved for payment, depending on the configuration of the FAM function. Supplier invoices can also be specified with no pre-entry, which means that all accountings are ready. No accounting is carried out on the suspense account; the invoice is fully accounted directly.
• Supplier invoices and self-billing invoices are matched to purchase orders or goods receipts, if applicable.
• Preliminary fixed assets and additional costs to existing assets can be created if the account is a fixed asset account on a line type '8 - Accounting line' when entering supplier invoices, or doing a recode in 'Supplier Invoice Batch. Open' (APS450) and API APS450MI (Supplier Invoice Batch Interface). Information about the fixed asset must be specified. Additional information number '016 - Preliminary fixed asset number' is added on the fixed asset accounting line when preliminary fixed asset is created. Additional information number '017 - Definitive fixed asset number' is added on the fixed asset accounting line when additional costs are added to an existing fixed asset.
• If the account is a period account on a line type '8 - Accounting line' when entering supplier invoices or doing a recode in (APS450) and APS450MI, a connection can be done to an existing period accounting record in 'Period Accounting Table. Open' (GLS470). Fields for 'From period' (PERF) and 'Record number' (RCNO) must then be specified and these fields refer to a record in (GLS470). Additional information number '047 - Traceability record – period accounting' is created on the accounting transaction related to the period accounting.
• Any cash discounts are recorded.
• An accounting journal and a supplier invoice journal are printed.
• The claim against the supplier is offset when a claim invoice or claim request updates accounts payable and a variance is recorded for any adjustment.

Use these settings when required:

• Recode and approve invoices that received status 'Not approved for payment' in 'Supplier Invoice. Recode' (APS110).
• Recode of invoices can also be done in (APS450) with APS450MI, transactions 'AddHeadRecode' and 'AddLineRecode'. Then invoice batch type '25 - Recode' is used. When doing a recode in (APS450), all accountings must be done and the VAT code must be entered on all accounting lines. Line type '8 - Accounting lines' is used for all these accountings. Vouchers must be balanced in order to be updated to the AP ledger, otherwise the update cannot be continued. For divisions using M3 sales tax, self-assessed sales tax can be added to an invoice where tax is not included. Tax will be calculated when the parameter 'Calculate tax' is selected and a tax code is entered.
• Complete the invoice matching in (APS110) for any invoices which could not be matched automatically in (APS450).
• Include the invoices in a payment proposal in 'Supplier Payment Proposal. Open' (APS130). Debit notes are included as credit notes.

These accounting rules are affected in M3:

Basic account entries

Account entries for VAT

The values in the tables for Batch Supplier invoices - FAPIBH (invoice header) and FAPIBL (invoice lines) - are verified.

Before you start

Batch supplier invoices

• The financial system must be configured. For details, see Enabling Financial Management.
• The tables for storing data for batch supplier invoices - FAPIBH and FAPIBL - must be populated.
• These FAM functions must be defined in 'FAM Function. Open' (CRS405): AP50 (for batch supplier invoices and claim invoices/requests), AP51 (for debit notes), AP52 (for self-billing invoices) and AP53 (for prepayment invoices). The FAM functions determine factors such as whether it is possible to update Accounts Payable if warnings exist for invoices, whether invoices that update Accounts Payable without any problems automatically are considered as approved for payment, and whether authorized users are retrieved from the supplier or if the buyer on the purchase order is selected as authorized user instead. If invoices should be automatically specified into Accounts Payable after verification in (APS450), alternative 1 or 2 must be selected in the 'Automatic update' field for the respective FAM function. Also, alternative 0 (invoice specified as approved for payment) or 2 (invoice specified as approved if fully approved and no amount on clearing account) must be selected in the 'Not approved for payment' field in the same FAM functions. With this workflow, only a voucher number series with voucher numbering method 2 (meaning that numbers are automatically assigned) on 'Voucher Number Series. Open' (CRS410/E) can be selected.
• For supplier claim invoices and supplier claim requests, the settings for supplier claims must be defined in (PPS122) and connected to the supplier on (CRS624/F). Supplier claim rebate transactions can be grouped based on five aggregation fields specified in (PPS122). When a supplier rebate transaction is connected to a claim, the values of the key fields are retrieved, and then the transaction is added to a supplier claim invoice or a supplier request with the same key values. If no such claim exists, a new claim is created. The key values are stored in FAPIBH. A limit for the number of supplier rebate transactions that can be connected to one claim can also be defined in (PPS122). When the limit is exceeded, a new claim is created in (APS450).
• Accounting rules must be defined for accounting event AP50 (all categories except debit notes) and AP51 (for debit notes only) in 'Accounting Rule. Set' (CRS395).
  Note: In (APS450) the invoice date is used for retrieving VAT rate and the accounting rules on a VAT transaction.
  • 111 and 112: VAT payable 1 and 2. These accounting types are used when VAT is based on the accounting date or invoice date, that is, the 'VAT reported on payment day' check box is not selected for the VAT code on 'VAT Code. Open' (CRS030/E). Accounting type 112 must also have VAT method 2='Combined VAT' or 3='Chain VAT' on (CRS030/E).
  • 113 and 114: Suspense account for VAT payable 1 and 2. These accounting types are used when VAT is based on the reporting day, that is, the 'VAT reported on payment day' check box is selected on (CRS030/E). Accounting type 114 must also have VAT method 2 or 3 selected on (CRS030/E).
  • 200: Control account. This is the creditor's control account on which the invoice is automatically booked in the General Ledger.
  • 210: AP accounts prepayment
  • 220: Prepaid cost
  • 211: VAT receivable 1. This is VAT to be claimed; used only if the 'VAT reported on payment day' is not selected for the VAT code on (CRS030/E).
  • 212: VAT receivable 2. This is also VAT to be claimed, referring to the second VAT amount if the 'VAT reported on payment day' check is not selected and VAT method 2 or 3 is selected for the VAT code on (CRS030/E).
  • 213: Suspense account for VAT receivable 1: Used when VAT is reported on payment day (see above).
  • 214: Suspense account for VAT receivable 2: Used when VAT is reported on payment day (see above).
  • 215: Clearing account. This is the account that is automatically debited for debit invoices. It is only used if an alternative other than 0 is selected in the 'Not approved for payment' field of the FAM function AP50 on 'FAM Function. Open Details' (CRS406/E).
  • 218: Accounting line. Only valid for line type 8-'Accounting line', when you retrieve pre-accounted lines or partially pre-accounted lines, that is accounting lines that are pre-defined outside of M3 BE. For example, internal expense reports performed by employees in an external tool.
  • 230: Charges: This refers to any bank fees and other charges connected to the invoice.
  • 280: Rounding off.
  • 420: Claim against supplier: Only valid for supplier claim invoices and supplier claim requests.
  • 440: Claim adjustment: The difference between the claim against supplier and the adjusted amount.
• You have verified the configuration of supplier batch invoices using manually created invoices in the test phase. You can specify invoices manually by using related option 1 in (APS450).
• You can use VAT code 0 on VAT base transactions for line types 1,2,5 and 8, but you cannot create a VAT line for line type 3 with VAT code 0. When there is no VAT on the invoice and the VAT code is 0, you must not use line type 3 in 'AddLine' (APS450MI) or in 'Supplier Invoice Batch . Open lines' (APS451). Two ways to create a suspense account transaction with VAT code 0 when the VAT code on the supplier is something else are to enter the supplier invoice using line type 8 and update the suspense account transaction with VAT code 0, or to use a replacing VAT code to populate the suspense account in ‘VAT Exception. Open’ (TXS020).

For invoices to match to purchase orders

For a description of requirements, see Automatic Matching of Batch Supplier Invoices to Purchase Order.

Outline

Follow these steps

1. Perform batch supplier invoice validation.

   The batch supplier invoices are displayed in 'Supplier Invoice Batch. Open' (APS450). Each invoice belongs to a batch invoice type such as 20 for supplier invoices, and 10 for self-billing invoices. The B-panel can be configured, using the sorting orders, to select the invoices that you want to see.

   You manually trigger the suppler invoice validation on (APS450/B) by selecting the option 'Validation' for a single invoice or by pressing F18='Validation'. Both options display (APS455), which also can be started directly from the menu. If a single invoice is processed, all fields are protected and only the invoice number and batch invoice number are seen but cannot be edited. When F18 is used, a selection panel is displayed in (APS455) where the user can manually select a range of invoices or invoices with a specific set of characteristics.

   If no invalid or missing values are found, the invoices might directly update Accounts Payable with the current date as the accounting date, depending on the configuration of the FAM function. Otherwise, you update Accounts Payable by selecting one of the update options in a separate step.

   Results

   The results of the invoice validation are indicated by the invoice batch status displayed on (APS450/B). Status 20 or 50 means that no errors were detected; status 20 is only valid for self-billing, debit note request and supplier claims; and other invoices are assigned status 50. Status 15 indicates errors in the header or the lines.

   The statuses used for both the invoice header and the invoice lines are:

   • 1 = No errors
   • 2 = Error
   • 3 = Warnings

   For example, an invoice with header status 2 (error exists) and line status 3 (warning exists) can only update Accounts Payable after the invoice header has been adjusted.

   Application message 156 (Errors occurred during the validation of the supplier invoice) can be created if any errors are detected during the validation (activated in program (CRS424)). The application message is visible in (CRS420).

2. Manually adjust invoices with errors.

   Invoices that require manual correction have invoice batch status 15. Use the option 'Display error log' in (APS450/B) to view the errors for an invoice. Practically all fields in the invoice are open for editing until the invoice has updated Accounts Payable. Make the necessary adjustments for the invoice header on panels E and F in (APS450) and for the invoice lines on (APS451/E). Error messages or warnings are displayed for each relevant panel. Errors must be corrected whereas warnings normally can be overruled.

   Examples of such errors could be that the supplier is not registered, that the invoice date or payment method is invalid, and that a purchase order number is missing.

3. Print, reject, adjust, and approve a supplier invoice.

   For self-billing invoices, printing might be required if the supplier acceptance in 'Purchase Agreement. Open for Self-Billing' (PPS112) is set to 1, 2, or 3. For supplier acceptance 2 or 3, approving the invoice in (APS450) is then the next step for the self-billing invoice. If supplier acceptance type 3 is selected and the time limit has passed, the invoice is automatically approved.

   Debit note requests require printing. The printing of a supplier debit note can be triggered automatically from the validation if the AP standard document in (APS080) has auto print enabled.

   Supplier claim requests of 'Invoice batch type' 52 stops at status 30 – 'Printed'. Supplier claim invoices and supplier claim requests of 'Invoice batch type' 51 requires additional processing before they can be approved and transferred to accounts payable.

   Depending on the settings for claims in (PPS122), automatic validation and automatic printing of a supplier claim invoice or a supplier claim request can be triggered when the supplier rebate transactions are transferred to (APS450) from (PPS123).

   When the printing has been performed, either manually or automatically, the status of the supplier claim will be 30 (Printed).

   The supplier will then approve or reject the claim.

   If the claim is rejected, the supplier claim can be adjusted and reprinted.

   If the supplier claim is approved, it can be transferred to accounts payable.

   For supplier claim requests, you can update the supplier invoice number, the invoice date and the due date in the approval step.

4. Update Accounts Payable and perform invoice matching (if applicable).

   Accounts Payable can be updated automatically as part of the validation or updated as a separate step by selecting option 9='Update to AP ledger' for a single invoice or by pressing F19 for all invoices. When F19 is used, the user is directed to (APS455) where the invoice selection can be made.

   If the values in the invoice header indicate that the invoice should be matched to a purchase order (PO) or goods receipt, the invoice is automatically matched as part of the update of accounts payable. Supplier invoices and self-billing invoices can be included in the matching whereas debit notes cannot. For details, see Automatic Matching of Batch Supplier Invoices to Purchase Order.

   If the matching is incomplete or could not be performed at all, the matching must be completed manually afterwards. (See the Uses section.)

5. Print invoice.

   You can at any time print a single invoice or a selection of invoices in (APS455). (APS455) can be started from (APS450) for a single invoice or for a range of invoices using F17.

6. Manually specify automatic supplier invoice.

   If you want to match a specific invoice to a particular purchase order in a more complex matching scenario or specify the invoice as approved directly, for example, specify the invoice manually based on the printed invoice in 'Supplier Invoice. Record' (APS100).