Create Item Invoice – A summary of the activity
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This activity allows you to create an item invoice. An item invoice is a type of direct invoice that can be raised on a supplier for item purchased without a purchase order. A direct invoice can also be used for booking liabilities towards suppliers directly, for expenses incurred.
An item invoice is raised based on the invoice issued by the supplier for items that have been purchased without a purchase order. The items that are purchased must be valid in the inventory system. You can enter the tax, charge and discount details of the invoice. The system calculates the payment schedule based on the pay term that has been defined for the supplier. If an electronic payment is applicable for the login company, you can also record details of the electronic payment that must be made to the supplier.
If the item that has been purchased incurs any Value Added Taxes (VAT), the system calculates the VAT that is applicable based on the default VAT categories that have been set for the “Purchase” cycle. You can modify the calculated VAT amounts. You can also modify the VAT postings that have been made in the individual accounts. If the supplier is a one-time supplier, you can also record the details of the supplier who has supplied the items. You can also select debit documents against which the invoice must be adjusted. You can select the documents if you have opted for the manual adjustment type. The system adjusts the invoices against the selected debit documents when it is authorized.
This activity also allows you to authorize the invoice during the creation process. The system updates the status of the authorized item invoice as “Authorized”. The system also stores the login ID of the user and the system date along with the invoice details.
Getting familiar with the pages inside
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Go to page… |
For… |
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Create Item Invoice |
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Tax / Charge / Discount |
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Adjustment |
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Payment Schedule |
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Supplier Information |
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Payment Information |
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Edit Item Invoice |
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Invoice Summary |
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Accounting Information |
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Attach Notes |
Attaching notes |
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Tax Calculation - Summary |
Calculating Tax |
What you can do in this activity
Generate invoice numbers automatically
Enter Tax, Charge or Discount (TCD)
Update details for different types of electronic payments
Provision to authorize the invoice
Modify Value Added Tax (VAT) calculated
Item invoices are created based on invoices that have been received from suppliers. An item invoice is usually created to maintain the details of the invoice received from a supplier towards the supply of items without a purchase order reference. The items that are received must be items that are valid in the inventory. The supplier who has issued the invoice could be a regular supplier or a one-time supplier. The details of the newly created item invoice can be modified till it is authorized.
Go to “Create Item Invoice” page.
Enter the necessary information based on the invoice received from the supplier.
Create the item invoice.
An item invoice can be authorized on creation. The details of the authorized invoice cannot be modified. The payment schedule generated cannot be modified. The system updates the status of the invoice as “Authorized”.
Go to “Create Item Invoice” page.
Enter the necessary information based on the invoice received from the supplier.
Authorize the invoice.
An authorized item invoice can be adjusted against selected debit documents. The debit documents against which the item invoice must be adjusted can be selected if you have opted for manual adjustment. If you have opted for automatic adjustment, the system adjusts the authorized item invoice against the available debit documents.
Go to “Create Item Invoice” page.
Set the method of adjustment.
Go to “Adjustment” page.
Search and select the list of debit documents against which the invoice must be adjusted after authorization.
Generate invoice numbers automatically
Unique numbers are generated for the invoices. These numbers are generated based on the corresponding prefix and suffix of the selected numbering type and incremented from the last generated number.
Go to “Create Invoice” page.
Select the numbering type.
Create the invoice.
Enter Tax, Charge or Discount (TCD)
The TCD details that are available in the supplier invoice can be entered for the individual items. TCDs can be entered in two different levels for the invoice. TCD can be entered at the “Document Level” when the TCD has been calculated for the invoice as a whole, that is the TCD is common for all items in the invoice. TCD can also be entered at the “Line Level” when the TCD is applicable for the individual items of the invoice. The system generates a payment schedule for the invoice including the TCD details.
Go to “Tax / Charge / Discount” page.
Enter the TCD details.
A payment schedule gives you the pattern in which the payment must be made to the supplier. The system generates the payment schedule based on the pay term set for the invoice. The payment schedule can be modified based on the business requirements of the organization. The payment schedule can be modified provided the invoice is in the “Draft”, “Fresh” or “Returned” status. The payment schedule is frozen when the invoice is authorized.
Go to “Payment Schedule” page.
Make the required changes and generate a new payment schedule.
Update details for different types of electronic payments
An electronic payment can be made to the supplier if electronic payments are applicable for the company. Electronic payments can be made through the ESR or ESR+ methods, LSV method, through a specific bank or PTT. The banks and the accounts through which the transaction occurs will be based on the definitions made in the “Supplier” business component. These settings can be modified if required. The payment schedule that has been generated can also be modified.
Go to “Payment Information” page.
Modify the bank details and the payment schedule if required.
An invoice summary contains the details of the invoice along with the details of the payments and the adjustments made. The payment details can be viewed if a payment, full or partial, has been made. The details of the adjustments can be viewed when the invoice is adjusted after the invoice is authorized.
Go to “Invoice Summary” page.
View details of the invoice, payments and adjustments.
The invoice amount is posted into different accounts of a finance book. The various postings that occur for a transaction can be viewed account wise in both the base currency and the parallel base currency of the company.
Go to “Accounting Information” page.
View the account posting details.
Provision to authorize the invoice
This activity provides the facility to authorize an invoice. Authorization can also be done while saving the modifications made to the TCD, payment schedule or supplier information. Authorization can also be made while saving the calculated VAT and the VAT postings pages.
Go to “Tax / Charge / Discount” page.
Go to “Payment Schedule” page.
Go to “Payment Information” page.
Go to “Supplier Information” page.
Go to “VAT Calculation” page.
Go to “VAT Posting” page.
Modify Value Added Tax (VAT) calculated
If VAT is applicable for the items available in the invoice, the system calculates it automatically provided VAT is applicable for the company. This VAT amount can be modified if required. The VAT is recalculated based on the modifications made.
Go to “VAT Calculation” page.
Modify VAT details.
The VAT calculated for the items are posted in the relevant VAT account when the invoice is authorized. This posting amount can be modified if required. The corrected posting amounts are then posted in the relevant finance book.
Go to “VAT Postings” page.
Modify posting amounts.
If the supplier is a one-time supplier, the contact details of the supplier can be recorded. The complete mailing address and the contact details can also be recorded.
Go to “Supplier Information” page.
Enter supplier information.