Concluding Invoice Matching when Goods Arrive

Outcome

A goods receipt is matched to the supplier invoice that refers to the goods receipt. Account entries are created that offset the goods receipt. The invoice is approved for payment.

For information about what to do next, see Matching Supplier Invoices to Purchase Orders.

Account Entries

Accounting Information Type	Accounting Rule	Account	Debit	Credit
Entries Created When Goods Are Reported:
-	PP10–910	Inventory (standard cost or PO price)	x
-	PP10–225	Received not invoiced—item (PO line price)		x
-	PP10–226	Received not invoiced—line charge (PO charge price)		(x)
Account Entries Created during Manual or Automatic Matching:
10	PP20–225	Received not invoiced—item (PO line price)	x
11	PP20–227	Price variance (difference between PO price and invoice price)	(x)
52	PP20–235	Invoiced not goods receipt—item (invoice line net amount)		x
20	PP20–226	Received not invoiced—line charge (PO charge line price)	(x)
21	PP20–228	Price variance (difference PO charge and line price)	(x)
53	PP20–236	Invoiced not goods receipt—line charge (invoice charge net amount)		(x)
Account Entries Created If Invoice Line Is Manually Closed:
54	PP20–235	Invoiced not goods receipt-item (difference invoice cost amount and received cost amount)		x
56	PP20–227	Price difference (offset to PP20-235). For average cost items, PP20-910 is used if closed with the related option, 20. If closed with the 24 related option, then the PP20-270 accounting rule is used.	x
55	PP20–236	Invoiced not goods receipt-line charge (difference invoice cost amount and received cost amount)		(x)
57	PP20–228	Price difference (offset to PP20-236) For average cost items, PP20-910 is used if closed with the related option, 20. If closed with the related option, 24, then the PP20-270 accounting rule is used instead.	(x)

New Invoice Lines

An invoice line of type 4='Matched to goods receipt' is created. The line inherits all data except quantity (which is set as invoiced quantity or goods receipt quantity) from the invoice of type 2='Invoiced not goods received'.

If an invoice line was manually closed, an invoice line of type 5 is created, which represents the difference between the invoiced cost amount and the received cost amount.

Statuses

If matched, the invoice line of type 2 receives invoice matching status 9='Fully matched', invoice status '33334' and is updated with the receipt quantity and the receipt cost amount. The entire invoice may also receive invoice status '33334'.

Before You Start

• A supplier invoice must be matched to a purchase order before the goods arrived. This means that an invoice line of type 2='Invoiced before goods receipt' was created during invoice matching. A line of this type can be created in one of the following situations:

• When entering a supplier invoice together with a purchase order number in 'Supplier Invoice. Recode' (APS100) by using workflow (Next Manual Step) 5–8.
• When entering a supplier invoice and then selecting a purchase order number in 'Supplier Invoice. Select to Match' (APS350) by using sorting order 4.
• When entering a supplier invoice and manually selecting a purchase order line in 'Supplier Invoice. Select Trans to Match' (APS351) by using sorting order 01.

• The general ledger must be updated with account entries created for the invoice line of type 2; that is, status 4 is displayed in the 'Status – account entries' field in (APS360) for the line.
• The invoice line of type 2 must have status 0 in the 'Invoice matching status' field in (APS360), which indicates that the line is not matched to a goods receipt.
• The goods must be reported as received. The goods receipt must refer to the same purchase order, purchase order line and possibly purchase order sub-number as the invoice line of type 2.
• If the completed invoice matching is to be created automatically when account entries for the goods receipt updates the general ledger, alternative 1 or 2 must be selected in the 'Automatic approval condition' field for the supplier in 'Supplier. Define Purchase & Financial' (CRS624). If more than one shipment of goods is expected for items (purchase order lines), the alternative selected should be 1. If only one shipment is expected, the alternative selected should be 2.
• The 'Create account entries at goods receipt' check box in 'Settings – Cost Accounting' (CAS900) must be selected. The field determines at which stage account entries for the goods receipt update the General Ledger.

Follow These Steps

1. Report Goods Receipt

   When goods arrive they are reported in 'Purchase Order. Receive Goods' (PPS300). The goods receipt can be matched to the supplier invoices in the following ways:

   • Automatically Match to Goods Receipt

     Automatic matching is normally used in companies that handle large numbers of transactions, since it makes the processing of invoice matching faster and more effective. Depending on your settings, account entries are created when the reporter ends (PPS300) after reporting the goods receipt, or when running 'Internal Account Entry Create' (CAS950), for example, as a night job. (The latter alternative is often used in larger companies, since it increases the system's performance.)

     When the matching begins, a search is done for an invoice line that was matched to the purchase order line to which the goods receipt refers. If such a line is found, a match is done between the invoiced quantity (or goods receipt quantity) and the quantity reported as received (or reported as put away). If the matching is approved, account entries are created and the invoice may be approved for payment (if not already approved).

   • Manually Match to Goods Receipt

     If automatic matching is not used, you have to match the goods receipt manually to an invoice. This implies that you can identify the invoice to which to match the goods receipt. The advantage of manual matching is that you immediately see the result of the matching and can adjust the invoice if necessary. If the matching is approved, you create account entries, and the invoice may be approved for payment (if not already approved).

     The matching is begun in 'Supplier Invoice. Match to GR Line' (APS360), which is reached via 'Supplier Invoice. Recode' (APS110).

2. Check Unapproved Invoice Lines

   You can regularly trigger an automatic check for invoice lines that are not completely matched. If any such lines are found, their quantity is automatically matched once again and, if they are matched, they are approved and account entries are created. The invoice can also be approved for payment as a result, if it was not already approved.

   This activity is especially useful when the put-away quantity, and not the received quantity, is used in the automatic matching of goods receipt to invoices. The two main reasons for triggering this check manually are:

   • The put-away quantity is reported after the goods receipt is reported so the matching will not be approved before the put-away is reported.
   • When a quality check of received goods is included in the routine, the put-away quantity can differ from the received quantity.

   The check is begun in 'Supplier Invoice. Auto Match GL Line' (APS375), and a report displaying the result is printed.

3. Review and Adjust Invoice

   If the invoiced quantity is not equal to the received quantity and you do not expect to receive any more goods for the purchase order, you can manually adjust the invoice, for example, by creating a debit note or debit note request in (APS360). For details, see Verify and Adjust Invoice Lines for Invoice Matching.

4. Manually Close Invoice Line

   If the invoiced quantity is not equal to the received quantity, do not expect to receive goods for the purchase order. You can manually close the invoice line of type 2 by selecting the 20='Receipt completed' option for the line in (APS360).