Deduct Customer Order Invoices during Grower Agreement Settlement

Main programs:

  • 'AR Payment Method. Open' (CRS076)
  • 'Supplier Invoice Batch. Open' (APS450)
  • 'Supplier Invoice Batch. Open Lines' (APS451/E)
  • 'Supplier. Define Purchase Financial' (CRS624/E)

Background

Where a company is engaged in a grower agreement with a farmer, the company often sell goods or services related to the fulfillment of the agreement. The value of these good and services can be deducted from the amount owed to the farmer during the invoicing and settlement process, as opposed to billing for these separately. To distinguish these customer invoices from invoices for goods not related to an agreement a dedicated payment method indicating 'paid by settlement' is available. If necessary these amounts can also be reversed and cancelled after they are invoiced by changing this payment method.

Purpose

This document explains the process by which:

  1. The amounts associated with the customer order for the sale of goods or services to the farmer are deducted from the total invoice amount during the grower agreement settlement process.

  2. Customer invoice amounts can be removed from a validated invoice.

  3. Customer invoice amounts can be excluded from the grower settlement process by changing the payment method on the customer order or invoice.

Before you start

  1. Payment method set up for customer order:

    Parameter 'paid by settlement' must be set on the customer's payment method. To do this follow these steps:

    • In 'AR Payment Method. Open' (CRS076/E) ensure that parameter 'paid by settlement' is selected.
    • The 'paid by settlement' parameter will be active if:
      • Payment class is '0-cash payment'
      • GCM module is activated in MNS100 for the company and division
    • When 'paid by settlement' parameter is set, the below parameters must be de-selected:
      • Upd coupon ledg
      • Letter of credit
      • Group due date

  2. Supplier number must be connected to customer number in 'Supplier. Define Purchase Financial' (CRS624/E)

Follow these steps

  • Create a customer order with a payment method that has the 'paid by settlement' parameter set. Deliver and invoice the order.
  • A check is performed to confirm that the supplier connected to the customer has a valid self billing agreement in 'Purchase Agreement. Open for Self Billing' (PPS112). If a valid agreement is found, the customer invoice details are stored for later use in the settlement process.
  • In 'Supplier Invoice Batch. Open' (APS450), highlight the required self-billing invoice and select related option 8='validation'.
  • 'Supplier Invoice Batch. Select Operation' (APS455) is displayed. Confirm selections and click next.
  • The customer invoice amounts previously stored are included in the settlement as deductions (type 07) if:
    • They are not yet invoiced.
    • They match the currency of the supplier invoice.
    • The currency is local currency.
  • The customer invoice amounts are then:
    • Deducted from the total supplier invoice amount.
    • Either partly or completely paid by the settlement process. If partly paid, the remaining amount is retrieved the next time the self-billing batch invoice is updated. The status on the type 07 invoice line indicates whether partly (status 20) or completely (status 30) paid by settlement.
  • (APS450) is then returned displaying an increase in invoice header status.
  • Print invoice using related option 6= 'print'.
  • Update invoice to AP using related option 9='update to AP ledger'.
  • Detailed information for the type 07, customer invoice amounts, can be viewed in 'Supplier Invoice Batch. Open Lines' (APS451/E).
Note: Customer invoices created in 'Customer Invoice. Enter' (ARS100) and 'Customer Invoice. Enter Manual' (ARS120) are also eligible for this process.

Remove customer invoice amounts from a validated invoice

If the invoice status has not yet reached '90-Updated In APL', the customer invoice amounts, invoiced and settled using the above process, can be reversed and removed from the self-bill invoice.

Note: Self-billing invoice must have a status of between 20 and 50

Action required

Highlight an invoice record in 'Supplier Invoice Batch. Open' (APS450) and select option 23='re-set to status new'.

Outcome

  • Invoice header is updated to status 10
  • Customer order lines of type 07 are permanently removed from the invoice and made available for use against other invoices for the supplier:customer connection
  • The total invoice amount is adjusted to reflect the removal of the customer invoice amounts.

Exclude customer invoice amounts from settlement

The above process explains the pre-requisite set up and workflow required to include applicable customer invoice amounts in the grower agreement settlement process as a deduction of the total supplier invoice amount.

Where required, the customer invoice amounts can be excluded from this settlement process, by ensuring that the customer order or invoice is not associated with a payment method where the 'paid by settlement' parameter is set.

Follow these steps

  • If not yet invoiced, update the 'Payment mtd AR' parameter in 'Customer Order. Open' (OIS100/H) to change the payment method on the customer order.
  • Through 'Acc Receivable. Display' (ARS200), update the 'Payment method' parameter in 'Customer Invoice. Change' (ARS201/E) to change the payment method on the invoice.

Limitations

  • Currency of the customer invoice must match the self billing invoice.
  • Currency must be in local currency.
  • It is not possible to attach a customer order invoice to a selected self-billing invoice through the user interface or API.
Related topics