Define Basic Accounts Payable Settings

The field indicates whether you can approve an invoice for payment if the person who is specified as the authorized user is the same person as the one logged onto the system.

The field indicates whether activities related to authorizing and approving supplier invoices in (APS110) are logged in a log file.

A log entry is then created when these activities are completed:

• An authorized user has been assigned to an invoice.
• The authorized user has been changed for an invoice.
• An invoice is sent for review.
• An invoice is received after having been reviewed.
• An entire invoice has been approved for payment by one person.
• A part of a split invoice has been approved.
• All parts of a split invoice have been approved for payment.
• A non-approved invoice has been canceled in (APS110).
• Log entries are saved in the FPLLOG table. You can review them in 'Supplier Invoice. Display Log' (APS235).

The field indicates whether the authorized user is changed automatically during invoice approval if the invoice amount is higher than the maximum approved amount that has been specified for the authorized user in (CRS650).

Not selecting the check box means that a new authorized user must be selected manually if the amount is too high. The new authorized user must have a maximum approval amount that is higher than the invoice amount.

Selecting the check box means that a change of authorized user is done automatically if the amount is too high. The new authorized user is the one selected in the 'Next level' field in 'Authorized User – Suppl Invoice. Open' (CRS650) for the original authorized user.

The field indicates whether the supplier invoice must be approved by two users with the appropriate approval limit. If enabled, a default cross authorizer must be specified. When the first user approves the supplier invoice, it is automatically routed to the authorizer's next level, as specified in (CRS650). If no next level is specified, the invoice is routed to the default cross authorizer.

The field indicates the order in which M3 searches for the person responsible for recoding.

The alternatives are these:

• 0: Function is not used.
• 1: The person responsible at the division level specified in (APS905). See below.
• 2: The person responsible for recoding as defined per authorized user in (CRS650).
• 3: The person responsible for the specific account from 'Accounting Identity. Open' (CRS630).
• 4: Same as the authorized user.

If a responsible person is not found in the first alternative, the search proceeds with the remaining alternatives. If the field is left blank, the search ends.

Example

If you select alternatives 3 and 4, the responsible person is first searched for in the charts of account in (CRS630). If a responsible person has not been selected, the authorized user is automatically selected as the person responsible for recoding.

If a responsible person is found, a message of type 149 is displayed for this user in 'Application Message. Open' (CRS420). The message states that an invoice has been registered and must be recoded. Note that if the person responsible for recoding is the same person as the authorized user (alternative 4), no message is sent.

The field indicates the person responsible for recoding in the current division.

The person responsible for recoding has these additional authorities:

1. Transfer supplier invoices to another authorized user.

2. Approve supplier invoices that belong to someone else. A control of the amount is still carried out automatically against the maximum approval amount specified for the authorized user in (CRS650).

3. Approve supplier invoices that have been split into several invoices. See the explanation of the following field.

4. Receive and approve amounts of invoice accounting lines that could not be distributed to anyone else.

To enable activities 1 and 2, the 020 check box in (APS905) must be selected. To enable activities 3 and 4, the 080 check box must be selected.

Example

A credit card invoice arrives. The invoice involves several people and is therefore split into several invoices, one per authorized user. The invoice must be paid within a few days and it is unlikely that all people involved have time to authorize their part. For example, when one or several of these people are unavailable due to vacation. The person responsible for recoding then decides to approve the entire invoice to avoid extra charges due to late payment.

Important

If the company wishes to have several people with these additional authorities, those people must be registered in 'Authorized User - Suppl Invoice. Open' (CRS650) with security access code 4.

The field indicates by which accounting dimension to split a non-approved supplier invoice automatically for separate authorization of each invoice accounting line.

The alternatives are these:

• 0: No split
• 1-7: Accounting dimensions 1 to 7.

This function is automatically triggered when an invoice is posted to an expense account as non-approved, either directly when registering the invoice or afterward during the re-coding. Each invoice accounting line posted to an expense account (that is, all accounting lines with transaction code 41) is automatically allocated to the person specified as responsible for the accounting identity in the selected accounting dimension for authorization.

Thus, accounting lines posted to clearing accounts, VAT accounts, supplier debt accounts, and approved invoices, are not included in this routine.

Example

You want each person responsible for a unit to authorize invoices related to his/her staff. Each member of the staff is registered as a cost center in the company's chart of accounts in 'Accounting Identity. Open' (CRS630). Cost centers are specified in accounting dimension two in the company's accounting string, so you select alternative 2 in this field. By adding the name of the responsible person to the cost centers of each member of his or her staff on the (CRS630/F) panel, invoice lines with one of these cost centers are allocated automatically to the responsible person for authorization. A message is sent informing the responsible person. The invoice accounting lines can then be approved in (APS110) by selecting sorting order 7. If the same person receives more than one accounting line from the same invoice, the amounts are accumulated and displayed as one total amount.

All split invoices are displayed for each authorized user on the (APS110/B) panel by selecting sorting order 7. If required, the authorized user can change the authorized user for a single accounting line or for all accounting lines that are allocated to him or her.

When an accounting line in the split invoice is recoded, two accounting lines are created: one accounting line that offsets the recoded accounting line and the new accounting line created by the user. The first line receives the same authorized user as the recoded line. The second line receives the authorized user as determined by the accounting identities used.

After the authorization, the supplier invoice record is updated with the code 9999999999 in the field for the authorized user. The invoice receives status Approved when all accounting lines are authorized and approved. The only person who can approve the entire invoice, even if all accounting lines are not authorized, is the person with the overall responsibility for the recoding routine. (See the explanation of the 070 field above.)

The split invoice is reviewed in 'Supplier Invoice. Display Split' (APS115). Also, the authorized user and the approval code are displayed for the respective accounting line on 'General Ledger. Display Transactions' (GLS211/F).

Important

1. If the authorized user both recodes AND authorizes the invoice before exiting (APS110), then no split is done. However, if the authorized user recodes the total amount but does not authorize the invoice, the changes determine whether the invoice is split when the user exits (APS110).

2. If the invoice is split, any authorized user selected for the invoice header on the panel (APS100/F) is ignored.

3. If the name of the responsible person was not found on the (CRS630/F) panel, the invoice accounting lines are allocated automatically to the person specified as recoding responsible in (APS905). This ensures that no accounting lines are unattended due to an incomplete setup.

4. The accounting line is not included in this routine if an accounting identity is not registered in (CRS630) for the selected accounting dimension. If the chart of accounts is set up correctly, this type of accounting line should only refer to a dynamic control object (such as item number) and be the result of an approved invoice matching.

The field indicates how many days before the due date an automatic reminder is sent to an authorized user. If a cash discount is applied, the number of days is deducted from the cash discount date instead. The reminder is displayed as a message in 'Application Message. Open' (CRS420).

You can leave the field blank or specify a value from 0 to 999 days.

The field indicates whether automatic reminders are also sent for supplier invoices that have been stopped for processing on 'Acc Payable. Change Sep Invoice' (APS201/E).

The field indicates whether delegation of authority is used. Delegation of authority is a framework for supplier invoice approval where an authorizer is connected to a delegation of authority group in (CRS650). The delegation of authority group consists of multiple delegation of authority lines which sets the approval limit per delegation of authority code. A delegation of authority code is connected to one or multiple accounts in (CRS630).

When working with delegation of authority, each accounting transaction on the voucher connected to the supplier invoice is connected to an authorized user. Note that the accounts payable transactions and VAT transactions are not connected to an authorized user. The record in the accounts payable ledger automatically receives authorized user 9999999999, since multiple authorizers can exist on one invoice. When the supplier invoice approval is performed, the user should use sorting order 8 in (APS110).

If the invoice approval by accounting dimension is enabled, the accounting transactions are split according to the accounting dimension, however the user should still use sorting order 8 to approve a supplier invoice.

The field indicates whether a supplier invoice is automatically approved when re-coding is performed through 'Invoice control' or 'Credit Note Control' in (APS110).

The setting in field 'Not approved' on the 'FAM function' determines whether the invoice should be approved or not at re-coding.

The field indicates whether the original supplier invoice should be approved for payment when all credit request transactions connected to the original invoice have been accounted and the general ledger has been updated.

A credit request transaction is closed when the status of the credit request transaction is greater than or equal to '90 – Updated in GL'.

The field indicates whether the functionality for trade code is used; that is, whether it should be possible to create a basis for and compile statistics on (international) trade.

These are the alternatives:

• 0: No.
• 1: Yes, trade code can be used for international trade.
• 2: Yes, trade code can be used for both international and national trade.

If alternative 1 is selected, you can only specify a trade code for international trade (that is, when the supplier's country code and the division's country code differ). Compiling these statistics is a requirement in many countries. Each company reports what it has paid to suppliers in other countries, categorized in material, services, etc.

If alternative 2 is selected, you can specify a trade code regardless of the supplier's and the division's trade codes. This enables you to specify a trade code for domestic invoices that originate in a foreign currency. This is a legal requirement in some countries, or it may result in sparing the supplier from paying a fee to the bank since the transaction is processed as a foreign payment.

The field indicates whether a distribution note with data about the supplier invoice is to be printed after each invoice entry and to be used as a basis for authorization or recoding.

These are the alternatives:

• 0: No
• 1: For (APS450) only
• 2: For (APS100) only
• 3: For both (APS450) and (APS100).

If alternative 0 is selected, manual entry of a supplier in (APS100) amounting to zero is stopped during processing. Supplier batch invoice entry in (APS450) without an amount is allowed, but is captured in the voucher checking routine, and the voucher is visible in (GLS037).

If alternative 1 is selected, only supplier batch invoice entry in (APS450) without an amount is allowed to be transferred to AP. Manual entry of a supplier invoice in (APS100) amounting to zero is stopped during processing.

If alternative 2 is selected, only manual entry of a supplier invoice in (APS100) amounting to zero is allowed. Supplier batch invoice entry in (APS450) without an amount is allowed but is captured in the voucher checking routine and the voucher is visible in (GLS037).

If alternative 3 is selected, both manual entry of a supplier invoice in (APS100) amounting to zero and supplier batch invoice entry in (APS450) without an amount are allowed to be recorded and transferred to AP.

The field indicates whether you can use the parameter 'VAT on expense report' on the invoices on (APS450/F) and in API APS450MI (Supplier invoice batch interface), transaction AddHead.

If you select this check box, then you can use the parameter 'VAT on expense report' on the invoices on (APS450/F) and in APS450MI, transaction AddHead. When you select this check box, you can select whether VAT fields are displayed or not in (APS451) and in APS450MI, transaction AddLine in the invoice lines with line type 3='VAT', and line type 8='Accounting line'.

If you clear this check box, then the parameter 'VAT on expense report' is not displayed and you cannot use this parameter on the invoices in (APS450) and in API APS450MI, transaction AddHead.

See Expense reports in APS450.

The field indicates whether a payment proposal is to be deleted automatically after having been confirmed with option 9 on 'Supplier Payment Proposal. Open' (APS130/B).

If you do not select the check box, the payment proposal remains with status 9 in (APS130) and must be deleted manually by using the Delete option.

Do not select the check box if the M3 e-collaborator is to be used. The proposal files are needed in the M3 e-collaborator, and therefore you cannot delete them.

The field indicates whether supplier checks recorded in accounts payable updates 'Check. Open Checkbook' (APS300). The checkbook is used to control, copy, block, remove, or reverse checks.

If you select the check box, a new record is created in the checkbook when a check number is recorded in accounts payable.

The field indicates whether credit transactions are to be matched automatically when a payment proposal is created in (APS130).

Credit transactions in this context are supplier credit notes, supplier on-account payments, and, if the supplier also is registered as a customer, customer invoices to include for netting.

If you select the check box, alternative 1 (Match all types of credit transactions) is proposed by default in the 'Auto match of credit transactions in payment proposal' field on the (APS131/E) panel when creating a payment proposal. Credit transactions are matched against supplier invoices, regardless of payment date, to avoid negative payments. The payment dates of the credit transactions and supplier invoices are automatically changed to the payment date of the last transaction.

This procedure only includes transactions of these types:

• Invoices and credit transactions with payment methods with 'Grouped payment code' is set to 2-'Grouped per due date' in 'AP Payment Method. Open' (CRS071) .
• Invoices without a cash discount.

The field indicates if the supplier payment proposals are to be approved before the payment is made in (APS130).

The responsible person, or approver, for the bank account connected to the payment proposal, is controlled on the bank account in (CRS630).

When option 9-'Confirm' is used on a supplier payment proposal in (APS130), a check is carried out if there is an approver on this bank account. A message is sent to the approver, who then uses option 13 in the payment proposal in (APS130) to display the current situation of this bank account in 'Supplier Payment. Bank Account Overview' (APS127). The approver can see the bank account balances and all open payment proposals connected to this bank account, including the current proposal. The approver must then decide if there is enough money in the bank account to pay the current proposal.

If the payment proposal is to be approved, option 7-'Approve' in (APS130) is used, and the approver (user ID), approval date, and approval status are updated on the payment proposal. The user ID that requested the approval is notified and can confirm the proposal and the payment can be made in (APS130). The approver is the only user who can approve a payment proposal.

If the payment proposal is not approved, option 14-'Not approve' in (APS130) is used, and the approver can write a comment (F6='Text') connected to the proposal, describing the actions that the requester should take. This text is optional. The requester is notified that the payment proposal is not approved.

If a bank account does not have any approver in (CRS630), no approval is needed, and normal payment proposal management in (APS130) is used. The fields in (APS130) for 'Approval status', 'Approver', and 'Requester' are then blank.

Free text can be added to any payment proposal in (APS137) by using function key F6. If text is added, an asterisk (*) is shown in column 'Text' in (APS130).

If this check box is not selected, the supplier payment proposals do not need to be approved before the payment is made in (APS130).

The field indicates what happens if no goods receipt transaction is found for the PO when workflows ('Next Manual Step') 5 to 8 is selected on 'Supplier Invoice. Record' (APS100/E), 'Supplier Invoice. Recode' (APS110/B), or (APS112/B).

These are the alternatives:

• 1: The invoice matching programs do not start. The user stays on the (APS100/E), (APS110/B), or (APS112/B) panels respectively.
• 2: The user is asked whether to select the PO line instead.
• 3: The PO line is automatically selected if the goods receipt transaction is not found.

Compare this field with field no. 320 below which determines what happens if some, but not all, goods are received.

The field indicates how the amount left to be posted in the 'Left to distribute' field on the (APS360/B) panel is posted.

These are the alternatives:

• 1: Option 17 (All not approved) on the (APS360/B) panel is used to post the amount manually to a clearing account.
• 2: When leaving (APS360), the user is asked whether to post the amount to a clearing account.
• 3: When leaving (APS360), the user is asked whether to post the amount to a clearing account.

When posting the amount to a clearing account, accounting rule PP20-215 is used. When alternatives 1 or 2 are selected, it is possible to use other user-defined accounting rules.

The field indicates what happens if ('Next Manual Step') 5 to 8 are selected on the (APS100/E), (APS110/B), or (APS112/B) panels and goods receipt is not completed for all affected PO lines.

These are the alternatives:

• 1: Invoice matching does not start. User stays on the (APS100/E), (APS110/B), or (APS112/B) panels respectively.
• 2: Only goods receipt lines are selected.
• 3: User is asked whether the PO line should be selected for lines with missing goods receipts.
• 4: PO lines with missing goods receipts are always selected.

If alternative 3 or 4 is selected, these are applied:

The field indicates whether it is possible to end (APS360) after matching an invoice to a PO that refer to a fixed asset, without creating a preliminary fixed asset.

These are the alternatives:

• 1: Yes.
• 2: Yes, but a warning is displayed first. It is possible to override the warning.
• 3: No. You must create a preliminary fixed asset before exiting (APS360).
• 4: As alternative 3. However, 'Fixed Asset. Open Preliminary' (FAS180), the program that creates preliminary assets, is automatically displayed when account entries are created in (APS360).

If alternative 2 or 3 is selected, that means when exiting (APS360) after matching, a search is done for any invoice line with a fixed asset account. If such a line exists, a check is performed to ensure that a preliminary fixed asset has been created for the line. A preliminary fixed asset is created by using option 9 for an invoice line in (APS362). This program is accessed by selecting option 12 in (APS360). If you select alternative 4, you do not have to use option 9 in (APS362).

The field indicates whether any exchange rate gains or losses are to update the average cost of the PO's item.

Exchange rate gains or losses arise when the PO is in a foreign currency, and there is a difference in exchange rate between the date of the PO and the date of the goods receipt.

Account entries for gains or losses are created for each invoice line during invoice matching in (APS360). If the check box is selected, then the gains or losses are considered price variances and update the item's average cost.

The amount is expressed in local currency. Note that the variant is calculated based on the difference between the total EU VAT recorded on the supplier invoice, and the total EU VAT recorded on the purchase order per VAT code.

If the rounding variance is within the defined acceptable amount, no additional accounting entries are created after invoice matching. If the total variance amount exceeds the acceptable amount set in the parameter, additional VAT accounting entries AP10-111 and AP10-211 will be created on the voucher after invoice matching.

The field indicates whether to display the coding panel with the accounting lines created when completing the invoice matching and exiting (APS360).

The field indicates whether the inventory accounting price should be updated with the price differences that occur during invoice matching for actual cost items. This happens when the inventory accounting method is set to 4 - Actual cost in 'Item. Connect Facility' (MMS003).

The field indicates whether to enable the performance of a goods receipt directly during invoice matching initiated through (APS100) or (APS112).

The field indicates the work flow used when you select a purchase order (PO) in 'Supplier Invoice. Select to Match' (APS350) that is not completely goods received. For this scenario and this selection, the function for performing goods receipt during invoice matching is used.

The field indicates if all account entries offsetting the PP10-225 and PP10-226 account entries are based on accounting rules PP20-225 and PP20-226. Accounting rules are maintained in 'Accounting Rule. Set' (CRS395).

Otherwise, all account entries offsetting the PP10-225 and PP10-226 account entries are based on the original accounting string.

The field indicates how supplier invoices using 'Invoice matching on PO header level' are managed.

In some situations, when working with supplier invoices in 'Supplier Invoice Batch. Open' (APS450) it is necessary to first perform invoice matching on PO header level, and if the invoice matching is successful, the invoice is transferred to 'Accounts Payable'. If the supplier invoice matching fails, it is sometimes necessary to hold the invoice, transfer the supplier invoice lines to (APS450), and perform a more detailed invoice matching.

These are the alternatives:

• 0: No
• 1: Yes
• 2: Inventory items.

If alternative 0 is selected, the invoice is always transferred to 'Accounts Payable' and accounted on the clearing account if the supplier invoice amount is outside the tolerance limits defined in 'Settings - Supplier Invoice Match' (APS900).

If alternative 1 is selected, and the supplier invoice amount is outside the tolerance limits defined in (APS900), the 'Invoice status' is updated to 79-'Invoice matching failed' in table FAPIBH.

If alternative 2 is selected, and the supplier invoice amount is outside the tolerance limits defined in (APS900), the 'Invoice status' is updated to 79-'Invoice matching failed' if the purchase order contains at least one line for an inventory item. If the purchase order only contains non-inventory lines, the invoice is transferred to 'Accounts Payable'.

Purchase order lines with one of these characteristics are considered as non-inventory items:

• The origin of the purchase order line is 24 (Customer order, direct delivery)
• The origin of the purchase order line is 35 (Rental agreement) and Purchase order category is 80–'Loan'
• The origin of the purchase order line is 36 (Rental agreement, direct delivery)
• The item is a non-inventory item, as defined in 'Item. Open' (MMS001).

If alternative 0 is selected, the VAT code for line and header charges is retrieved from these programs in the following order: the costing element in (PPS280), the purchase order line in (PPS201), and the supplier in (CRS624) or (MFS620). If no VAT code is found in the first program, the search continues in the following programs.

If alternative 1 is selected, the VAT code for line and header charges is retrieved from (APS451). If the VAT code is not specified, the search continues as in 4alternative 0.