Arrival Entry Supplier Invoice

Description of process

The Arrival Entry Supplier Invoice process is used to register supplier invoices which have arrived to your company into IFS/Applications. There are two separate windows where the registration of preliminary invoices is possible.

The Preliminary Supplier Invoice window is used for simultaneous and rapid entry of several preliminary supplier invoices.

The invoice is entered without cost postings. The invoice could either be entered with Preliminary Posted status wherein the supplier debt is posted and the invoice is created as an accounts payable ledger item, or with Preliminary status wherein no postings and no ledger item are created. When the invoice is saved, the received status depends on whether the Create Posting at Invoice Entry check box in Enterprise/Company/Invoice tab is selected or not. If the check box is selected, a voucher belonging to function group I is created when the invoice is saved. The voucher contains postings for supplier debt, tax, and the invoice net amount to a preliminary cost account. All postings are created automatically via posting control. If the check box is cleared, no voucher is created when you save the invoice. Preliminarily entered supplier invoices are finally posted when cost postings are known and are entered on the invoice.

For a preliminary entry, all postings are created automatically as follows:

• Invoice amount: Posted to the account defined for the posting type IP1, supplier debts, in Accounting Rules/Rules/Posting Control.
• Tax amount: The tax method defined in the Tax Codes window determines whether the tax is posted on preliminary entry or final entry. If preliminary entry is used, the tax amount is posted to the account defined for the following posting types depending on tax type defined in Tax Codes window:

• Tax type is Tax, IP3, Tax Received, Invoice
• Tax type is Calculated Tax, IP9, Tax Received, Calculated and IP10, Tax Disbursed, Calculated
• Tax type is Use Tax, IP3, Tax Received, Invoice and IP11, Use Tax.

When Tax Method for the Tax Code is Invoice or Final Posting, IP26 is used for Tax Currency Loss and IP27 is used for Tax Currency Gain. 

If the Payment tax method is used, the account specified for posting types should be a preliminary account. Reallocation to the definitive account for Tax received occurs when the invoice is paid.

• Net amount: The invoice net amount is posted to a preliminary profit and loss or balance sheet account defined for posting type IP5, preliminary cost. If the connected tax code(s) has deductible % lesser than 100, amount of tax which is non-deductible is also posted to posting type IP5, preliminary cost.

The Manual Supplier Invoice window can also be used for preliminary entry but is mainly used for direct entry of supplier invoices when cost postings are known, and/or for final posting of preliminary entered invoices previously created. You can enter a gross amount of zero (0) for supplier invoices in the Manual Supplier Invoice window. These invoices will then automatically advance to the PaidPosted state and a zero payment will be created. These invoices will be automatically authorized regardless of the specific supplier setting.  

For a preliminary entry, an invoice is entered without cost postings. The invoice could either be entered with Preliminary Posted status wherein the supplier debt is posted and the invoice is created as an accounts payable ledger item, or with Preliminary status wherein no postings and no ledger item are created. When the invoice is saved, the received status depends on whether or not the Create Posting at Invoice Entry check box in Enterprise/Company/Invoice tab is selected. If the check box is selected, a voucher belonging to function group I is created when the invoice is saved. The voucher contains postings for supplier debt, tax and the invoice net amount to a preliminary cost account. All postings are created automatically via posting control. If the check box is cleared, no voucher is created when you save the invoice. Preliminarily entered supplier invoices are finally posted when cost postings are known and are entered on the invoice.

When an invoice is entered for the first time and the final cost postings are included on the same occasion, a voucher is created belonging to function group I. This voucher includes the final cost postings as well as the supplier debt and tax postings.

Vouchers connected to a preliminarily entered or directly entered invoice can be analyzed by right-clicking and then clicking View Vouchers after the invoice has been saved.

For a preliminary entry, all postings are created automatically as follows:

• Invoice amount: Posted to the account defined for the posting type IP1, supplier debts, in Accounting Rules/Rules/Posting Control.
• Tax amount: The tax method defined in Tax Codes  window determines whether the tax is posted on preliminary entry or final entry. If preliminary entry is used, the tax amount is posted to the account defined for the following posting types depending on tax type defined in Tax Codes window:

• If tax type is Tax, IP3, Tax Received, Invoice.
• If tax type is Calculated Tax, IP9, Tax Received, Calculated and IP10, Tax Disbursed, Calculated
• If tax type is Use Tax, IP3, Tax Received, Invoice and IP11, Use Tax.

When Tax Method for the Tax Code is Invoice or Final Posting, IP26 is used for Tax Currency Loss and IP27 is used for Tax Currency Gain. 

If the Payment tax method is used, the account specified for posting types should be a preliminary account. Reallocation to the definitive account for Tax received occurs when the invoice is paid.

• Net amount: The invoice net amount is posted to a preliminary profit and loss or balance sheet account defined for posting type IP5, preliminary cost. If the connected tax code(s) has deductible % less than 100, amount of tax which is non-deductible is also posted to posting type IP5, preliminary cost.

Before you start entering information, check whether Basic Data Required (BDR) has been set up as per instructions given in Define Financials Basics, for the Set up Basic Data Accounts Payable process.