Manually Enter Supplier Invoice for Payment

Outcome

• The supplier invoice is posted. See Overview of basic entry flows. This list shows an overview:
  • Approved invoices are manually posted.
  • Unapproved invoices are posted either automatically or manually, depending on the clearing account code specified for the FAM function detail record used.
  • Invoices may be connected to a future rate agreement. Unapproved invoices are posted either automatically or manually, depending on the clearing account code specified for the FAM function detail record used.
• An accounting journal and a supplier invoice journal are printed. A distribution note may be printed as well, depending on your settings. See Before you start.
• Authorize any posted unapproved invoices in 'Supplier Invoice. Repost' (APS110) before payment.
• Pay posted and approved invoices by creating payment documents based on a payment proposal in 'Payment Proposal. Open' (APS120).
• Follow up invoices with or without a specific future rate agreement in 'Future Rate Agreement. Open' (RMS120).

Posted invoices are assigned a voucher number each. Accounts payable and the general ledger are updated when the program is exited.

This table shows the basic transactions created:

Since the cost account for approved invoices that are not matched to purchase order is manually entered, no accounting rule is used for this account entry.

When the accounting string for quick entry is used for entering unapproved invoices, the business account and any other accounting identities entered overrule the clearing account.

Before you start

Before you can start, you must meet these prerequisites:

• You must meet the starting conditions listed in Manually Entering Supplier Invoices.
• If you use a standard voucher as a record template when coding the invoice on (APS100/J), you must create this voucher in 'Standard Voucher. Open' (GSL015).
• You must define the accounting rules for accounting event AP10 in 'Accounting Rule. Set' (CRS395).
• You must select the 'Distribution note' check box on 'Settings – General Ledger' (CRS750/E) if a distribution note should always be printed for you to use as a basis for approval or recoding after entry in 'Supplier Invoice. Record' (APS100).

Settings for FAM function AP10

Follow these settings for FAM function AP10:

• For unapproved invoices, one of these clearing account codes must be selected for a detail record under FAM function AP10:
  • 0: Manually posted using the coding panel.
  • 1: Automatically posted to a clearing account without using the coding panel.
  • 2: Automatically posted to a clearing account but displaying the coding panel for entry of additional accounting identities, when necessary.
    Note: The accounting string for quick entry on (APS100/E) overrules the clearing account code selected.
  • If you want to enter an extended invoice reference number to use as a reference instead of the invoice number when paying the invoice later by EDI, the number of fields to use must be selected in the 'Invoice reference number' field. Up to three extra fields are then opened for this purpose on (APS100/E).
  • If you want to use another value, such as bank account number or telephone number, than the supplier number to identify the supplier when you enter invoices in (APS100), select the 'Alternative search key' check box. If you select the check box, you can enter an alternative search key with up to 36 positions in the supplier number field on (APS100/E). The search key itself is defined in (CRS627) by selecting a combination of a table that has a reference to the supplier and a field in that table that contains the value to use. In (CRS627), you can also define table CIDMAS together with the field ID 'BUSINESSID' to generate a concatenation of the fields 'Organization number 1' and 'Organization number 2' as a single search key. When you exit (CRS627), the CIDALL table is populated in the background with the values in the selected field. If the field ID 'BUSINESSID' is selected, the CIDALL table is populated with a concatenated organization number record for all suppliers. When pressing Enter or clicking Next on (APS100/E), M3 uses the CIDALL table to retrieve the supplier number based on the alternative search key. You might need help from Technical Support to identify which tables and fields would be relevant in your case. For an example, see the field help text for the 'Alternative search key' check box.
  • If the F panel with proposed details retrieved from 'Supplier. Define Purchase & Financial' (CRS624) should be displayed during entry, you must select alternative 1 in the 'Display supplier invoice details' field. If alternative 2 is selected, the values are automatically accepted and the panel is not displayed.
  • If the G panel with proposed cash discount details retrieved from (CRS624) should be displayed, you must select alternative 1 in the 'Display cash discount details' field. If alternative 2 is selected, the cash discount is automatically calculated based on the cash discount terms defined for the supplier on (CRS624/F).
  • If you want to adjust the voucher text during entry, you must select alternative 1 or 2 in the 'General voucher text' field. The text is then proposed on 'Supplier Invoice. Record' (APS100/F).
  • If fields for VAT codes and VAT amounts should be displayed during entry on 'VAT. Record' (TXS150/B), you must select 0 or 3 in 'Auto VAT acctg'. With this, you can change the VAT amount if rounding has been applied to the invoice, for example, on 'VAT. Record' (TXS150/B).

    If 'VAT printout' is set to 2 or 3 on (CRS750/F), you can adjust recorded VAT and VAT base amounts on 'VAT. Record' (TXS150/B). In that case, a currency variance occurs. The currency variance for the VAT is recorded on accounting type AP10/301 or 302, and the currency variance for the VAT base is recorded on AP10/301 or 302 with an offsetting amount on accounting type AP10/303.

  • If you want to enter additional accounting identities for the basic credit transaction on (APS100/F), you must select the 'Account supplementation' check box for the detail record on (CRS406/F).
  • If the ID of the person responsible for approving the invoice should always be specified on (APS100/F), you must select the Authorization check box. If you have selected not to display the F panel, it is still displayed if this information was found missing.
  • If you want to add an additional payment reference, you can add parallel invoice for invoices with payment class 0, 3, or 5.
  • If you want to use an invoice accounting template for posting recurring invoice records on (APS100/H), you must select such a template either for the detail record or for the supplier in (CRS624). Note that the template connected to the supplier overrides the template defined for the detail record.
  • If VAT should be calculated automatically when coding the invoice in 'Accounting. Open' (GLS120), 'Auto VAT acctg' must be set to 1.

Overview of basic entry flows

This diagram shows an overview of the basic entry flows that you can use for invoices that should not be matched to a purchase order:

Follow these steps

Enter basic invoice information

1. Start 'Supplier Invoice. Record' (APS100/B).

   The B panel contains the lists of all FAM function detail records defined for all types of manual entry. Information such as the accounting template used and whether account supplementation is used is also displayed.

2. Select option Select for a detailed record of unapproved or approved invoices.

3. On the E panel, specify the supplier, supplier invoice number, and amount in the invoice currency (required).

   The currency is automatically retrieved from the supplier master file and proposed if you press Enter after you specify the supplier. The base country code used for tax purposes is retrieved from 'Company. Connect Division' (MNS100) in the same way. The supplier country code and area or state, for the U.S. sales tax, are retrieved from the first address listed in 'Supplier. Connect Address' (CRS622).

4. When applicable, select one or both of these alternatives and press Enter:

   • If the invoice does not require any advance accounting processing, use the 'quick entry' accounting string for the invoice's debit transaction instead of activating the separate coding panel later.
     Note: The dimensions in the accounting string are displayed in the order 1 to 7, that is, they are not affected by any value entered into the 'Dimension order' in the selected FAM function detail record.
   • Enter additional invoice reference numbers to be used instead of the invoice number when paying the invoice.

Reviewing invoice details proposed from the supplier master file (F panel)

1. Review these information on the F panel:

   • Supplier information: Payee, supplier.
   • Currency information: Currency, exchange rate type, invoice exchange rate.
   • Payment processing details: The person to approve the invoice; payment method, payment terms, cash discount terms; future rate agreement; voucher text.
   • If parallel invoice number is used, a check digit method is defined for this payment method and the payee's country in 'Additional Payment Reference for AP. Open' (CMS091), an input control of the check digit is carried out. If the check digit is invalid, a warning message is displayed.

     The check digit method is used when calculating and controlling the check digit in a parallel invoice number.

     If an alternative check digit method is specified, which is optional, the input control of parallel invoice numbers uses this alternative check digit method instead if the check digit is invalid for the check digit method that was entered first. If the check digit is incorrect, a warning message is displayed.

     If the check digit is correct when using the first check digit method, no more controls are done. However, if the check digit is wrong and an alternative check digit method is specified, that check digit method is used instead, for controlling the check digit.

     If the check digit is incorrect for both of the check digit methods, the check digit is invalid and a warning message is displayed.

     You must use numeric values to calculate and control the check digit. If the parallel invoice number is blank, no input control is done. If the check digit method is blank in (CMS901), no input control is done.

     If no rule can be found in (CMS901) for the payment method and the payee's country when carrying out the input control of a parallel invoice number, but there is a rule for this payment method and payee country is blank (catch all), this method is used instead.

     The input control is only carried out for invoices with AP payment methods that have payment class 0=Cash, 3=Bank transfer, and 5=Direct debiting.

   • Tax information: The country from which the company has bought goods or services, area or state for U.S. sales tax reporting, and base country; service code, trade code, and delivery date. VAT codes, VAT amounts, and VAT base amounts in local currency are specified on 'VAT. Record' (TXS150/B), which is displayed when pressing next on 'Supplier Invoice. Record' (APS100/F).

     The delivery date indicates the date when the invoiced goods are delivered. This is a mandatory value if delivery date is selected as VAT date type on 'Settings – General Ledger' (CRS750/F) and the VAT code on the supplier is set up with VAT date type 0. Otherwise, the delivery date is not required.

     When 'VAT. Record' (TXS150/B) manually changes to at least one VAT code setup with VAT date type 3 or 4 on 'VAT Code. Open' (CRS030/E), a panel is displayed after leaving the coding panel where the user is required to enter a delivery date for such VAT codes. If the invoice refers to several goods deliveries, enter the latest delivery date. If the invoice refers to services ordered without a purchase order, such as a training session, specify the date the service that is rendered, that is, the 'operation' date.

   • Supplementary accounting identities: Accounting string for account supplementation.

2. Adjust any values that you need to correct. Press Enter to continue to the next panel, G, H, J, K, or TXS150/B, depending on whether a cash discount, an invoice accounting template, tax withholding method 4, or manual VAT accounting is used.

   If the company is configured for trade statistic reporting and the supplier's country code is an EU country different than the division's country code, a warning message informing you that trade statistics are expected is displayed on the F panel. To review and complement the trade statistics values for the invoice, press F18 to activate'Trade Statistics. Open' (TXS300) E and F panels. When you return to (APS100/F), press Enter to continue.

   If the payment method of the invoice is class 0, 3, or 5, the parallel invoice number should be considered and can be changed or deleted. If the payment method is changed other than with payment class 0, 3, or 5, the parallel invoice number is removed.

Enter VAT information

On the VAT panel 'VAT. Record' (TXS150/B), specify the VAT codes and VAT amounts. If the invoice currency is not equal to the local currency of the division, fields for VAT and VAT base in local currency are also displayed and you need to complete it.

Reviewing cash discount information based on supplier master file or terms entered on the F panel (panel APS100/G)

1. Provided that this is in agreement with the supplier, also adjust the proposed discount dates and the connected percentages. Press Enter.

2. On the G panel, adjust the amount on which the cash discount is based in the 'Cash discount base' field, when necessary.

Enter amounts for recurring invoice records on predefined accounting strings (panel APS100/H)

1. On the H panel, check the up to nine record types with your predefined accounting strings included in the template.

2. For each relevant record, specify an amount and, when necessary, adjust the proposed VAT code. Press Enter.

   If the invoice is specified using a FAM function detail record with clearing account code 1 or the 'quick entry' accounting string was used, the invoice is automatically posted and you return to the B panel.

Reviewing withheld tax and enter amounts for deduction of on-account payments (panel APS100/K)

1. On the K panel, check the proposed VAT amount and adjust the amount if requested.

   Note: The VAT amount is only displayed when the service code used is defined with base amount = net amount in 'Supplier Service Code. Open' (CRS063). The VAT amount entered is only used for the calculation of the base amount for withheld tax; no account entries are created.

2. Deduct any open on-account payments for the supplier and the service code used by browsing the supplier invoice number and selecting the on-account payment to be deducted from the base amount. Select 'Create' to add the on-account payment.

   Other non-applicable costs can also be deducted from the base amount by specifying the amount and then selecting Create.

3. Check the withheld tax calculated and if requested, go back to panel F to change or remove the service code.

   Note: Any on-account payments and non-applicable costs are removed if you leave the panel K by selecting Previous or F12-Cancel. You must specify the information again when returning to panel K.

Deciding how to continue

1. At this stage, one of these alternatives is automatically selected:

   • The invoice is automatically posted and assigned a voucher number. Panel (APS100/E) is displayed for further entries. These are the applicable situations:
     • The invoice is specified as unapproved using a FAM function detail record for immediate posting on a clearing account.
     • The invoice is specified using the accounting string for quick entry on (APS100/E). Repeat the activity until all invoices are specified.
   • The coding panel J is displayed. These are the applicable situations:
     • The invoice is specified as unapproved using a FAM function detail record with clearing account code 0 or 2.
     • The invoice is specified as approved.

2. Select one of these alternatives:

   • If the invoice is posted, continue with the steps under 'Adjust Entered Invoices and/or Create a Voucher' on (APS100/E).
   • If the invoice is not posted, continue with the steps under 'Manually Enter Accounting Information for Invoice '.

3. On the J panel, select one of these alternatives:

   • To specify or add accounting information manually, continue with the steps under 'Manually Enter Accounting Information for Invoice'.
   • If you specify an approved or unapproved invoice and want to use a standard voucher as a template with predefined records and amounts when entering accounting information, continue with the steps under 'Apply Standard Vouchers for Complex Recurring Invoice Records'.

Manually enter accounting information for invoice

1. On the J panel, specify the account and any other accounting identities together with the applicable amount for the debit transaction.

2. Adjust the VAT code, voucher text, and service code, when needed.

3. If applicable, specify a quantity with up to two decimals, service code, or bank operation code. Press Enter.

   Note that the service code is not available for suppliers with tax withholding method 4, as this method uses the invoice amount, excluding or including VAT, as base amount for the calculation.

4. To adjust a line you specified, select option Open to re-open it, or option 12='Change date value' to adjust the bank operation.

5. Repeat the above steps until the amount left to distribute is '0'. Press F3 to finish and return to the E panel.

   The only way to leave the panel before the amount is distributed is to cancel the entire voucher by selecting F18 = 'Cancel voucher'.

Apply standard vouchers for complex recurring invoice records (panel J)

1. On the J panel, select F16 = 'Standard voucher' to call 'Standard Voucher. Open' (GLS015).

2. Select a standard voucher, either a complete balancing voucher type 1, or a template voucher type 2. Press Enter.

   The records in the selected voucher are displayed on the J panel with these information: currency amount, currency, recorded amount, account, and VAT code.

3. Select one of these alternatives:

   • If the voucher selected is a template voucher, continue with the steps under 'Adjust Entered Invoices and/or Create a Voucher'.
   • If the voucher is a complete voucher, press F3 to exit the program.

4. Use option Open to change any incomplete lines in the template voucher by entering missing values or adjusting existing values. Press Enter.

5. When all lines are correct and the offset accounting string is defined, press F3 to return to (APS100/E).

Adjust entered invoices and/or create a voucher (panel E)

1. If you want to adjust any invoice records displayed on the E panel, select one of these alternatives:

   • To adjust a value previously entered, select option 'Open' for the invoice record displayed and repeat the applicable steps above.

     Invoices with withheld tax created using tax withholding method 4 cannot be changed, but must be deleted and re-entered.

   • To change status of an invoice displayed from unapproved to approved or vice versa, press F14 and confirm with Enter.

     You can also use F14 to change the type of invoice before entering an invoice, without having to exit and select another FAM function detail record.

2. To create a voucher and update the financial system, press F3 to exit the program.

Allow manual entry of invoice with zero amount

1. To manually enter a supplier invoice with zero amount, you must use these settings:
   • Select alternative '2=For (APS100) only' or '3=Both for (APS450) and (APS100)' for parameter 135 Allow invoices without amount on 'Settings - Accounts Payable' (APS905/E)
   • You must set the clearing account code parameter for AP10 FAM function to '0=No'.
2. On the B panel, a warning message is displayed when the invoice amount specified is zero. The user can then proceed with the transaction by selecting Next.
3. After completing the invoice transaction with zero amount, the accounts payable account entry of the voucher created is internally reconciled. Thus, the invoice cannot be processed further.