Supplier Direct Invoice – An overview

Introduction

Direct invoice (DI) is used for entering details of supplier invoices and has no reference to a purchase order. It is the point of time where a business organization commits liability to an outside agency i.e., a supplier. It is required in the case of purchase of items which are regularly consumed and in respect of which no stocks are maintained either due to their negligible value or because they do not directly contribute to the production process.  Likewise, (DI) is also used for expenses where liability for payment can be deferred i.e., credit period is available. Examples of such items are stationery items, consumable items, office maintenance items, service charges like traveling, courier, etc.  

Direct invoice may also be required whenever there is an immediate necessity for stock able materials to be used because of unprecedented increase in demand for the goods in the market or an immediate production demand.  In such a scenario, a business organization cannot afford to go through the entire cycle of purchase request, receiving quotations, raising purchase order, etc., because of paucity of time.  Organizations in such cases may prefer to buy the materials directly from the supplier. Hence the need for a direct invoice arises.  Direct invoicing process enables the user to keep track of such emergency and adhoc purchases. This enables and ensures that all payables are accurately recorded and clearly tracked. 

Feature Highlights

• Provision to raise invoice for inventory items/services

• Provision to raise expense invoice for items/services not maintained in inventory

• Provision to link an invoice to a payment schedule with multiple pay dates.

• Provision to specify a unique number identifying the payment terms in a pay schedule

• Provision to modify system computed Pay Schedule

• Provision to default Supplier priority as payment priority for the invoice and modify it

• Provision to specify amount due either as a percentage or a flat amount.

• Provision to specify discount available as on the date of liability, recorded either as a percentage or a flat amount.

• Provision to specify penalty to be paid for overdue payments recorded as a percentage.

List of Activities