Managing Advance Invoice

Outcome

The customer has paid the advance invoice. This means that the amount on the final invoice has been reconciled with the amount paid in advance. The final invoice can be monitored in 'Customer Order Invoice. Display' (OIS350).

The payments processed affect your customer credit and risk management as well as your cash flow management.

When an advance invoice proposal is created in 'Customer Order. Invoice in advance' (OIS105), it receives status 20. The status is then raised to 70 after processing the advance invoice in 'CO Invoice. Print' (OIS180) or after interactive invoicing.

These files are updated:

• Pre-payment invoice (OOPINV)
• Customer order head (OOHEAD).

These files are updated after cash payment:

• Payments (OPAYMH)
• Payments Details (OPAYMD)
• Sales ledger (FSLEDG)
• General ledger (FGLEDG)
• Check number master file (FCHKMA).

For handling other payments, see .

Before you start

• Select Advance Invoice on 'Customer Order Type. Open' (OIS010/K) to allow advance invoicing for the order type used for customer order (including the item you want to get paid in advance for).
• Complete these steps to allow automatic creation of an advance invoice:

  1. On (OIS010/E):

     • Set the customer order type category to 1 (normal order).
     • Set the next manual function on (OIS010/E) to one of these alternatives:
       • 1 - Printout picking list/create delivery order
       • 2 - Delivery reporting. Picking list is printed immediately.

  2. On 'CO Type. Update Field Selection' (OIS014/N), set the default values per order type for these fields:

     • VAT code
     • Percentage (required condition only for automatic creation of an advance invoice)
     • Payment terms
     • Text lines 1 and 2.

  3. On 'Advance invoice for ECI' on 'Customer. Open' (CRS610/F), set the parameter to one of these alternatives:

     • 1 - An advance invoice is created automatically if a customer order line is linked to a reference order
     • 2 - An advance invoice is created automatically if a customer order line is linked to a reference order, and if the item is an extended catalog item or a non-coded item).
     Note: At least one order line must be linked with a reference order, or at least one order line has to contain an extended catalog item or a non-coded item. Extended catalog items (ECI) are items which are not kept in stock and need to be bought before being delivered to the customer.
• Complete these steps to enable cash payment after interactive invoicing:
  • On 'Customer order. Open' (OIS100/P) set Cash desk active to 1.
  • On 'Payment term. Open' (CRS075/E) set Cash payment to 1.
• Select the 'Early settlemnt' check box on 'Settings - Customer Order Invoicing' (CRS722/F) to consume the advance payment already on the first invoice instead of saving it to cover the last invoice. If the advance payment is greater than the invoice amount, the To pay amount is 0.00 and the remainder is consumed on future invoices.
• Define an advance invoice item on (CRS722/F) to present advance invoice amounts as item lines in the invoice BOD. The advance invoice item is represented by a customs statistics number set up in 'Customs Statistics Number. Open' (CRS128).
• Complete these steps to enable advance amounts to be offset as credit notes:
  • Define 'FAM function credit note' (CRFF) and 'Accounting option credit note' (CRAO) in 'Settings - Accounts Receivable' (ARS905).
  • Set 'Deduct method' to 1-'Offset as credit note', on (CRS722/F).
  • Optionally, specify 'CN no. ser' on (CRS722/F) if the regular advance invoice number series is not to be used for the credit note.

Follow these steps

1. Create advance invoice proposal

   • Create/update advance invoice proposal automatically
     Note: The advance invoice proposal is created automatically during order entry after automatic creation of advance invoice is enabled (see settings in Before you start). This means that at the end of the customer order creation (OIS105) will be called automatically.

     Create an order in 'Customer Order. Open (OIS100). Check that the values for the created proposal are correct on 'Customer order. Invoice in advance' (OIS105/B).

   • Create advance invoice proposal manually

     Enter default values on 'Customer Order Type. Update field selection' (OIS014/N).

     Select the order number for the advance invoice in (OIS100) or in 'Customer Order. Open Toolbox' (OIS300).

     Specify the amount to be invoiced in advance and check that the values which are set as defaults are correct on (OIS105/B).

2. Print advance invoice

   • Print advance invoice immediately (interactive)

     Select option 14='Interactive invoicing' on (OIS105/B). The invoice is printed on paper or sent through electronic media.

     Note:  Printing advance invoice immediately is only required when you handle cash payment.
   • Print advance invoice in batch

     Print a selection of advance invoices manually in (OIS180). All advance invoices belonging to the specified advance invoices dates are printed, and the final invoice is automatically reconciled against the total amount invoiced in advance.

3. Register payment - cash desk or account receivable

   If a customer wants to pay an invoice in cash, you initiate the cash payment in 'Cash Payment. Open' (OIS215) by specifying this information: cash desk, payer, currency, payment method, invoice number(s), and payment amount in foreign currency.

   Cash payments for invoices are carried out if a customer wants to pay the invoice immediately after customer order and invoicing, or at a common cash desk.

   If there are other payment methods to be used (manual bank transfer, draft, or check), you specify the received amount together with the relevant payment values in 'Payment Received. Record' (ARS110). The payment is then ready to be allocated to invoice records in the same program.

4. Final invoicing

   If 'Deduct method' is set to 0 - 'Deducted on final invoice' on (CRS722/F), the advanced invoiced amount will be deducted from the final invoice when the items have been delivered and the final invoicing is performed. The status in (OIS105) is set to 80 = 'Invoiced and settled'. In the case of partial delivery, deduction is only carried out if the remaining advance invoiced amount is greater than what remains to be invoiced on a future invoice, unless the 'Early settlement' check box on (CRS722/F) is selected.

   If 'Deduct method' is set to 1 - 'Offset as credit note' on (CRS722/F), the advance amount will be offset as a credit note that is created in conjunction with the invoice. This is represented be a credit record created in (OIS105). The invoice will be the full amount without deduction of the advance amount. The credit note will populate the Invoice BOD tables with 'Information type' (IVTP) 02 - Credit note. The final invoice number will be sent as 'Reference - extended invoice number' (RXIN).

   The credit note needs to be manually transferred to FIM through 'CO Invoice. Post-Process' (OIS196). It will only be included in the transfer if the invoice that triggered its creation is successfully transferred to FIM. Once transferred, the credit note will be automatically deducted from the invoice in accounts receivable.

5. Closing the order when there is an advance invoiced amount remaining

   When closing the order where there is an advance invoiced amount remaining, a credit 'advance invoice' can be created manually in (OIS105) to credit the customer with the remaining amount. After doing so, both the original advance invoice and the credit still have status 70 = 'Adv invoiced'. You can use 'Correction ID' OI04 - 'Update status for completed advance invoice in (OIS105)' in 'Program Problem. Solve' (CRS418) to update the status to 80 = 'Inv and settled' to indicate that the advance invoice is settled.