Monthly Group Invoice Processing for Japan Market

Outcome

The invoices and payments recorded during the period and those that are not yet included in the previous monthly group invoice processing will be tagged by adding a monthly group invoice number in an additional information table.

Once tagged, these invoices and payments cannot be included in the monthly group invoice processing. Invoice with negative amount like credit note will automatically be blocked with status set to 3.

Depending on the selection made on 'Customer Invoice. Group' (ARS191/E) for 'Group invoice type' field, the account receivable, general ledger, and their respective balance files are updated. Otherwise, the invoices remain open, no accounting entry will be generated, and only the monthly group invoice number that was added in the additional information table will be used as reference.

Information on specific invoices and which monthly group invoices they are included are displayed by selecting option 18='Additional info' for the invoice in question in 'Accounts Receivable. Display' (ARS200). This calls 'Customer Invoice. Display Additional Information' (ARS216), displaying the group invoice number.

You can send the monthly group invoices to the respective payers. Customer payment based on monthly group invoice can then be allocated to customer records and, if necessary, can be adjusted on 'Payment Received. Record' (ARS110/F) by selecting sorting order 5.

For group invoices of type 1='Actual invoice is created', these account entries are created:

Accounting rule	Account	Debit	Credit
*	Customer		1,500
*	Customer		500
AR60–100	Customer: Monthly Group invoices	2,000

*Account entry based on the customer invoice.

For group invoices of type 0='An invoice dummy is created', no account entries are created. The tables from this list will be updated once monthly group invoice proposal is created in 'Customer Invoice. Group' (ARS190/B):

Table	Description	Remarks
FSLGP1	Group Payment	Yes
FSLGP2	Group Payment - Customer	Yes
FSLGP3	Group Payment - Invoice	Yes
XJPSGT	Group Invoice - Japan Market	Yes
XJPSGM	Group Invoice - Japan Market	Yes (if payment exists)
FSLEDG	Account Receivable File	Yes, for ESSAGS and ESGRPD
FSLEDX	Account Receivable File	Yes
FGLEDG	General Ledger File	Yes, upon confirmation

Before you start

• See External and Internal Grouping of Invoices in Accounts Receivable.
• Number series type 56/1 for the monthly group invoice number must be defined in 'Number Series. Open' (CRS165).
• FAM function AR70 must be defined in 'FAM Function. Open' (CRS405). AR70 indicates voucher series, name, and cash discount method.
• The payment method used for recording the original invoices must allow for group invoicing. This is done by selecting 1='Due date' or 2='Specific date' in the 'Group due date' field on 'AR Payment Method. Open' (CRS076/E).
• These accounting rules must be defined in 'Accounting Rule. Set' (CRS395): AR60-100 (for regular group invoices).
• The payment term in 'Payment Term. Open' (CRS075) must be set to define the 'Number of days' and 'Payment day' fields which affect the closing date of monthly group invoice processing.
• The following must be set in 'Customer. Open' (CRS610):

  Panel	Field	Content
  H	Group Invoice	Select if the separate invoices to the partner should be closed monthly. Checked - close monthly Blank - do not close monthly
  	Closing date	Closing date for monthly group invoicing. Specify in date format (1-31, or 99). Specify 20, for example, if the monthly group invoice date for the customer is the 20th of every month. Specify 99 if the date is the end of the month. Take note of the 'Payment day' in 'Payment Term. Open' (CRS075).
  J	Payer	Payer for the partner. This field is mandatory if Unit of monthly closing is Payer.
  	Unit of monthly invoice	Unit of summation to prepare the monthly invoice: 1 - Per customer 2 - Per payer
  	Unit of VAT calculation base amount	Unit to calculate VAT amount for monthly group invoice: 1=' Monthly closing' 2='Separate invoice' 3='M3 calculation' If 3='M3 calculation' is selected, the valid VAT is calculated according to the VAT summation method defined on the G panel in 'Company. Connect Division' (MNS100).
  	VAT calculation method	Rounding rule in VAT calculation on monthly closing. 1 - Round off 2 - Round up 3 - Round down
  	Type of invoice output	Condition to print for monthly invoicing: 0 - No output if it consists of only the balance last month and payment received. 1 - Output if it consists of only the balance last month and payment received. This parameter is valid only if Print balance is set to 2 on the 'Customer Invoice. Group' (ARS191/E) panel.
  	Shipment on closing date	This parameter is used to include the invoice for a shipment made on the closing date in the next invoice closing instead of the current invoice closing automatically, because some customers might receive goods the next day even if the shipment is made on the date subjected to the current closing. 0 - Include in the current month 1 - Exclude from the current month and carry over to the next month
  	Invoice print type	Type of invoice for output: 0 - Print (including lines) 1 - Print (excluding lines) 2 - Do not print This parameter is valid only if Print Balance has been set to 2 on 'Customer Invoice. Group' (ARS191/E).

Follow these steps

1. Create a monthly group invoice.

   1. Start 'Customer Invoice. Group' (ARS190/B).

      The B panel lists previous group invoices and proposals, date when generated, created by, and status. These statuses are used:

      0 = The monthly group invoice proposal is created and can be processed.

      1 = The monthly group invoice proposal is being created.

      2 = The monthly group invoice proposal is being used by another user.

      4 = The monthly group invoice proposal is being deleted.

      7 = The monthly group invoice proposal’s VAT difference was computed.

      9 = The group invoice has been created. Cannot be changed but can be reprinted.

   2. Select type of sorting order, Sorting order 1='Name of monthly group invoice proposal' or Sorting Order 2='Created by'.

   3. Create a new monthly group invoice proposal by giving it a name and click New. (ARS191/E) is displayed. Note that the 'Name' field may be left blank on this panel, but it must be specified during the next step.

   4. On (ARS191/E), specify these fields:

      Field	Status	Comment
      Payer	Mandatory if Customer and Credit Department is blank	Specify From and To payers to be included in the monthly group invoice. This field or the Customer and Credit Department Reference field must be specified to avoid too much data which may slow down performance.
      Customer	Mandatory if Payer is blank	Specify From and To customers to be included in the monthly group invoice. This field or the Payer and Credit Department Reference field must be specified to avoid too much data which may slow down performance.
      Credit Department Reference	Mandatory if Payer and Customer is blank	Specify From and To Credit Department Reference to be included in the monthly group invoice. This field or the Payer and Customer field must be specified to avoid too much data which may slow down performance.
      Closing date	Mandatory	Specify closing date in 6-digit date format (YYMMDD). Separate invoices, which are connected to the customer or payer who has the invoice date corresponding to the closing date in the last 2-digits in fields, are included in the monthly invoice.
      Print balance	Optional	Set 1 to create the monthly group invoice consisting of only payment when no invoice to the customer or the payer exists and the type of invoice type must be checked on the (CRS610/J) panel.
      Retrieve payment method from	Optional	Specify from where the payment method for the monthly group invoice should be retrieved: 0 - Separate invoice 1 - Customer file 2 - Manual entry
      Group invoice type	Optional	0 - Create monthly group invoice as reference, and use the monthly group invoice number to refer to the separate invoice. 1 - Reconcile the separate invoices and group them into the monthly group invoice.
      Invoice release type	Mandatory	Specify whether the closing date defined for each customer or payer should be considered: 1 - Consider closing date 2 - Special (ignore closing date)
      Name	Mandatory	Name of monthly group invoice proposal.
      Report text	Optional	Specify texts to be printed on monthly group invoice.

   5. After completing the required fields, press Enter to create a proposal for the new set of monthly group invoices and to return to panel (ARS190/B); the proposal is listed if any invoices matching the selection criteria are found.

2. Verify, adjust, and confirm the monthly group invoice proposal.

   1. Review the monthly group invoice proposal by checking these fields on the (ARS195/B) panel: Monthly invoice number, Payer, Customer, Payment method - accounts receivable, Currency, Opening balance, Invoice amount, Payment amount, Monthly invoice amount, and Group invoice stop.

   2. Check the list of invoices and make notes on which invoices should not be included in the final set of group invoices on the (ARS196/B) panel.

   3. To adjust the monthly group invoice proposal, start 'Customer Invoice. Group' (ARS190/B), the monthly group invoice proposals are listed with date generated, created by, and status.

   4. Select the monthly group invoice proposal, then use the option 'Change' or 'Display' to open the (ARS195/B) panel. This panel lists all monthly group invoices included in the proposal. Select any of these options for each group invoice:

      • Option 'Open record': Adjust cash discount values on the (ARS195/E) panel. Note that this is only possible if you have selected group invoice type 1 on (ARS191/E) when creating the proposal. Continue with step 5.
      • Option 3='Hold': Block the monthly group invoice from the proposal and the final set of group invoices.
      • Option 4='Delete': Delete the group invoice completely from the proposal and the final set of group invoices.
      • Option 5='Display': Display the monthly group invoice on (ARS195/E).
      • Option 6='Release': Release a previously blocked monthly group invoice.
      • Option 11='Display invoices': List all invoices included in each monthly group invoice on the (ARS196/B) panel with information on invoice number, customer, invoice date, due date, currency, currency amount, and block code status. Continue with step 6.

   5. Adjust cash discount values for a specific monthly group invoice. On (ARS195/E), adjust the cash discount base, cash discount dates, and cash discount percentages per date. Press Enter to return to (ARS190/B).

   6. Review or delete invoices in a monthly group invoice on (ARS196/B), then select any of these options for a specific invoice:

      • Option 4='Delete': Delete the invoice permanently from the group invoice.
      • Option 11='Display invoices': Call 'Customer Invoice. Display Separate' (ARS215/B) to review the transactions included and drill down to the respective vouchers.

        Note that you cannot change any values for invoices if they are included in the monthly group invoice proposal.

   7. Create the final set of monthly group invoices on the (ARS190/B) panel. Select related option 9='Confirm' for the adjusted monthly group invoice proposal to create the final monthly group invoice and the monthly group invoice report will be generated.

3. Create a monthly group invoice report.

   A monthly group invoice report has header and line data. Header contains address for destination, Vat Registration number, invoice date, invoice number, due date, payment method, invoice amount, and balance brought forward from previous month.

   The line includes transaction date, order number, invoice number, delivery number, item description, unit price, quantity, amount, discount amount, tax rate, line discount, line charges, header charges, and header discount. The line is not created for invoices that come from manual processing in 'Customer Invoice. Enter' (ARS100). If the 'customer statistic number and item description (RTI5)' field is activated in 'Account Receivable Parameter'(ARS905), then a line is created for 'Customer Invoice. Enter Manual' (ARS120). Also, CO number with zero amount and draft invoices with status 10 to 90 and transactions from bank remittance and reconciliation are not included in the monthly group invoice report.

   Computation of monthly invoice amount

   A = Last invoice amount (corresponding to the amount of the previous group invoice)

   B = Current receipt amount

   C = Balance

   D = Current invoice amount

   E = VAT

   F = Monthly invoice amount

   Sample computations for monthly group invoice using the following data:

   A = 15.000,00

   B = 10.000,00

   D = 12.250,00

   E = 613,00

   Computation:

   A – B = C

   15.0000,00 – 10.000,00 = 5.000,00

   C + D +E = F

   5.000,00 + 12.250,00 + 613,00 = 17.863,00

4. Recalculate VAT.

   Recalculation of VAT is available on the creation of monthly group invoices. VAT calculation method in monthly invoicing is defined in 'Customer. Open' (CRS610) per customer or payer. In this program, the user specifies 2 parameters, 'Unit of VAT calculation base amount' and 'VAT calculation method'. VAT is calculated in monthly invoicing, and after the invoice is confirmed, the VAT difference resulted from the recalculation is to be journalized according to the VAT variance booking option in 'Customer Invoice. Group' (ARS190).

   The recalculation is performed on a separate invoice. Since the VAT of the separate invoice is calculated based on the M3 standard parameter, some combinations of the conditions for VAT recalculation defined per customer or payer are invalid. "VAT summation method" of 'Company. Connect Division' (MNS100) is an M3 standard parameter which is related to VAT calculation. Values related to VAT calculation including standard values are as follows:

   Panel	Field	Value	Content
   'Company. Connect Division' (MNS100/G)	VAT summation method	1	Total delivery lines multiplied by tax ratio and rounded off individually.
   		2	Round off delivery lines added and multiplied by tax ratio.
   'Customer. Open' (CRS610/J)	Unit of VAT calculation base amount	1	Month
   		2	Separate invoice
   		3	M3 calculation
   'Customer. Open' (CRS610/J)	VAT calculation method	1	Round off
   		2	Round up
   		3	Round down

   This table shows the setting patterns and results in monthly invoicing:

   (MNS100/G) VAT summation method		(CRS610/J) Unit of VAT calculation base amount	(CRS610/J) VAT calculation method	Validity	Calculation method
   1	Calculate by delivery line and then round off	1-Monthly	1- Round off	Yes	Multiply the total of separate invoice amounts by the tax ratio and round off.
   			2- Round up	Yes	Multiply the total of separate invoice amounts by the tax ratio and round up.
   			3-Round down	Yes	Multiply the total of separate invoice amounts by the tax ratio and round down.
   		2-Separate invoices	1-Round off	Yes	Round off the separate invoice amounts multiplied by tax ratio and get the total.
   			2- Round up	Yes	Round up the separate invoice amount multiplied by tax ratio and get the total.
   			3-Round down	Yes	Round down the separate invoice amount multiplied by tax ratio and get the total.
   		3-M3 calculation	1-Round off	Yes	Total VAT amounts calculated on AR accounting in M3.
   			2- Round up	No	(Calculation based on delivery line is not available.)
   			3-Round down	No	(Calculation based on delivery line is not available.)
   2	Calculate by separate invoice and then round off	1-Monthly	1-Round off	Yes	Multiply the total of separate invoice amounts by the tax ratio and round off.
   			2- Round up	Yes	Multiply the total of separate invoice amounts by the tax ratio and round up.
   			3-Round down	Yes	Multiply the total of separate invoice amounts by the tax ratio and round down.
   		2-Separate invoices	1-Round off	Yes	Total VAT amount of separate invoices.
   			2- Round up	Yes	Round up the separate invoice amount multiplied by tax ratio and get the total.
   			3-Round down	Yes	Round down the separate invoice amount multiplied by tax ratio and get the total.
   		3-M3 calculation	1-Round off	Yes	Total VAT amounts calculated on AR accounting in M3.
   			2- Round up	No	(Calculation based on delivery line is not available.)
   			3-Round down	No	(Calculation based on delivery line is not available.)

5. Reprint monthly group invoice.

   Reprinting of monthly group invoice can also be done from (ARS190/B), select the monthly group invoice proposal with status 9 or 7, then from related option select option 6='Print'. 'Monthly Invoice. Reprint' (ARS190/Z) is displayed. Specify these fields: Payer, Customer, and Monthly Group Invoice Number. Click Next or press Enter.

6. Perform monthly group invoice reconciliation.

   The invoices are to be reconciled in 'Payment Received. Record' (ARS110) upon receipt from partner. If the monthly group invoice is used as reference separate of invoice data (generated using group invoice type = 0), then the inquiry type on the screen should be sorting order '5' (Grouped Invoice) to perform the reconciliation. It is not allowed to make the partial payment for the invoices in this case. If the monthly invoice is generated using group invoice type 1, then all separate invoices are deemed to be reconciled, and only the data involved in the monthly invoice is to be kept as the invoice to the partner. It means that the invoice generated through '1' is treated in the same column as that for other separate invoices and can make the partial receipt for the invoices. See External and Internal Grouping of Invoices in Accounts Receivable.