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The Creditors function is used to create and maintain invoices received from Suppliers for goods and/or services rendered. The provision of goods or services could have been contracted via purchase orders or service requisitions (agreements).
Once the name of the Supplier is specified, the Invoice Header tab is used to add a new invoice by entering the static data specified on a Supplier invoice or to inquire on an existing invoice. To add a new invoice, the user must enter an invoice number, invoice date and the currency in which the Invoice was rendered.
An invoice can either be a debit invoice (invoice type = I) or a credit invoice (Invoice type = C - Credit Note).
The Invoice Lines tab requires the entry of the line number, invoiced quantity, unit price (or extended price) and tax amount. Comments can also be entered. Note that the entry of an invoice quantity greater than zero will only allow the linking of 'Purchase Order Receipts" on the "Invoice Links" tab. If the rendered invoice relates to advance payments, additional cost, credits or services, the quantity invoiced must be entered as zero.
Since the Purchasing function allows for both currency and unit of measure conversions, the Creditors function can accommodate such scenarios and no conversion is required when quantities or foreign currency amounts are entered for the invoice line.
The Invoice Links tab can only be accessed once an invoice line has been selected. An invoice line needs to be linked via this tab before it can be regarded as a valid invoice line, since the link contains the actual source as well as accounting detail.
A link can be referenced to a source document which can be either a Purchase order (which is mandatory if it is a receipt link), Service requisition (only for service links), Invoice or Credit Note ( meaning another invoice can be used as source document) or No reference ( meaning that a link do not need to be linked to an order, requisition or invoice)..
A delivery note and or Part number can also be specified as criteria to select the correct purchase order for receipt links.
A link can have a status of Active, On Hold or Deleted. If a link is On Hold then the system will not allow the link to be paid.
Where the type of link is specified as Purchase Orders, Additional Cost or Advance Payments, the selection of the Purchase Order and Purchase Order Line Number is mandatory. Where the type of link is specified as Services, the selection of a service requisition is mandatory.
Where unit of measure conversion applies to a selected purchase order line, the function will automatically convert the 'Invoiced Quantity' to a linked quantity in the ordered parts' base unit of measure. Where a currency conversion applies to a selected purchase order or service requisition, the function will automatically convert the invoiced amount in the foreign currency to an amount in the base currency. This will be done by applying either the currency conversion as stated on the purchase order line (if forward cover applies), or the buying conversion rate as defined on the Currency table.
The Journals Tab will display all the journals processed for the links applied according to the invoice, invoice line or invoice links. Settlement journals can also be viewed.
The Link Reference Tab will display all the source documents for a specific link and can also open the specific source document functions directly from this tab. (Purchase orders or Requisitions). The details of where the current invoice is also used as a source document reference can also be inquired on.
The Link History Tab will display all records for a specific link, specifically when the status was changed but also if any changes were made to the tax code on the link.
The Settlement tab is used to view settlements made for a selected invoice/line/ link. The function displays the detail of the bank transaction or the invoice link used to settle the link.
The user must have a security profile linked to the function Creditors with an access allowed of Inquire.
On this tab the following fields can be viewed:
Suppliers can sometimes be suspended and be made inactive but still have unsettled invoices on the system. It is necessary therefore to be able to view inactive suppliers together with active suppliers.
To select this option to view only active suppliers can shorten the list and accelerate response time.
When selected only Active Suppliers will populate in the Supplier combo, and when unselected ALL Suppliers will populate in the Supplier combo.
It is populated with the selected supplier's existing invoice numbers from the Invoice table, where the invoice type is either 'I' Invoice or 'C' Credit note as selected on the invoice type frame.
When a new invoice is captured then the invoice number is a user-defined number (as specified on the supplier's invoice).
The number of characters to be entered before the list is shown is governed by the value of "populate length".
The length has a maximum of 15 characters (mandatory).
An invoice can either be a type invoice 'I' or credit note 'C".
The default option is invoice.
This is the date on the supplier's invoice. It cannot be a future date and can be a non-working day.
It will default to today's date when a new invoice number is entered/added.
This is the supplier invoicing your company. It is populated with the supplier name, code, status, and clerk from the External Organisation table where:
The supplier has a valid creditor account.
The number of characters to be entered before the list is shown is governed by the value of "populate length" (mandatory).
RELATED TOPIC: External Organisation