Invoicing methods

Each company might have their own procedures for handling invoicing. AX has a variety of ways to manage incoming invoices depends on company’s needs. I would like to show you these ways.

1. Invoice register → Invoice approval

2. Invoice pool excluding posting → Invoice journal

3. Invoice journal

4. Vendor invoice

Let’s take a look on each method.

First option…

High level process will be:

  1. Appropriate user generates invoice by posting into Invoice register.
  2. Post Invoice register. With this AX will post the information with the amount into GL.
  3. Appropriate user generates Invoice approval where he will pull initially generated invoice register.
  4. Post Invoice approval. With this AX will reverse the postings made during the invoice register and post them into the final expense account.

Second option…

High level process will be:

  1. Appropriate user enters invoice details into the invoice pool excluding posting.
  2. Appropriate user pulls those invoices into the invoice journal where they will code them to the correct ledger accounts and then post the journal.

Third option…

Using the Invoice journal directly to generate the invoices.

Fourth option…

Using the Vendor invoice form.

Let’s walk through each way in AX

I. INVOICE REGISTER – > INVOICE APPROVAL

In an ideal world you would probably use this way of handling incoming invoices to encompass the typical process, which is:

When supplier invoice arrives, AP clerk performs three way matching (quantity, unit price, total) between invoice being paid and the goods originally ordered. In AX he creates Invoice register. Next, he posts it. With posting he forwarded to the department for authorization prior to processing. Responsible department creates an invoice approval journal and finds the invoices waiting for approval. If the amount invoiced exceeds a certain amount that is limited by the organization, the AP supervisor of that department may have to approve the invoice as well. Once it’s approved – meaning that this invoice can be paid, AX reverses the accrual that was posted in the register and moves the amounts into the expense accounts that were coded in the approval journal.

Navigate to Accounts payable > Journals > Invoices > Invoice register.

Create new journal by clicking New button.

Select the journal name (Make sure that journal name with Journal type = Invoice register exists).

Click on Lines button.

Select a vendor account.

Type the number of the invoice that has been provided by vendor.

Enter the amount of the invoice into the Credit field (If you need to create a Credit note received from the vendor instead of Invoice, then you will need to type the amount into the Debit field).

At the bottom of the form select an approver.

You can go through remaining tabs and enter additional information. Let’s leave it alone so far.

Click on Post button.

invoice_register

Once you post the journal and look at Voucher you will notice that GL is updated with the main accounts that are specified in the vendor posting profile per the arrival and the arrival offset.

voucher_after_invoice_register

vendor-posting-profile-for-invoice-register

Navigate to Accounts payable > Journals > Invoices > Invoice approval journal.

Create new journal by clicking New button.

Select the journal name (Make sure that journal name with Journal type = Approval exists).

Click on Lines button.

Find the vouchers by clicking Find vouchers button. On the Find vouchers form you can see all the vouchers that are available for approval.

find-vouchers

Click on Select button.

Click on OK button.

journal_vouchers_invoice-approval2

On the lower screen, you can see the breakdown of the voucher.

Line4: AX has automatically reversed the posting to the 200130 (the invoice pending approval account.

Line2: AX has automatically reversed the posting to the and 200125 account (the invoice pending approval offset account).

Line3: AX has automatically created line for the accounts payable domestic account, which will be used to record the vendor balance (Note: Account to record vendor balance is specified in the vendor posting profile.

Line 1: AX has automatically created line to specify where and what to offset vendor balance to.

Once you put offset account you should click Post button.

journal_vouchers_invoice-approval3

You can break this line into two lines using Function -> Breakdown of voucher.

breakdown-of-voucher

You can split line against different financial dimensions. Amount should be divided accordingly. After that you should click Update button.

journal_vouchers_invoice-approval4

Next, you can go to Inquiries -> Voucher and notice voucher transactions.

voucher-transactions-after-posting-invoice-approval

II. INVOICE POOL EXCLUDING POSTING – > INVOICE JOURNAL

The second way is using Invoice pool excluding posting → Invoice journal process. This way looks like previous one with only one difference that vendor invoice pool excluding posting has no effect on the GL.

Navigate to Accounts payable > Journals > Invoices > Vendor invoice pool excluding posting details.

Select a vendor account.

Type the description.

Enter the amount of the invoice into the Credit field (If you need to create a Credit note received from the vendor instead of Invoice, then you will need to type the amount into the Debit field).

Type the number of the invoice that has been provided by vendor.

You can go through remaining tabs and enter additional information. Let’s leave it alone so far.

Click on Print button to print the details.

vendorinvoicepoolexcluding

Once you have done this part, close the window.

Navigate to Accounts payable > Journals > Invoices > Invoice journal.

Create new journal by clicking New button.

Select the journal name (Make sure that journal name with Journal type = Vendor invoice recording exists).

Click on Lines button.

Click on Functions > Invoice pool excl. posting. In this form you can see all of the invoices that need to be posted.

functionvendorinvoicepoolexcl

Mark the checkbox next to each one that you want to select.

Click on Accept button.

vendorinvoicepoolexcludingpostingform

Once you accept this invoice will be automatically transferred to Invoice journal.

invoicejournalafteraccepting

Specify the offset account and select any other additional information like financial dimensions.

Click on Post button.

III. INVOICE JOURNAL

The third way for processing incoming invoices is to enter them directly into the invoice journal.

Once AP clerk enters invoices he may post them. If additional approval process is required for the invoice journals, you may set up workflow approval process or use the simple approval process, but this is an optional step.

Navigate to Accounts payable > Journals > Invoices > Invoice journal.

Create new journal by clicking New button.

Select the journal name (Make sure that journal name with Journal type = Vendor invoice recording exists).

Click on Lines button.

Select a vendor account that you want to post the invoice to.

Type the number of the invoice that has been provided by vendor.

Enter the amount of the invoice into the Credit field (If you need to create a Credit note received from the vendor instead of Invoice, then you will need to type the amount into the Debit field).

Note: If you want to create a simple, one-line entry where the entire amount offsets to one account, you can do that by typing in the offset account information.  If you want to split amount offsets across financial dimensions, you can do that by using Functions – > Breakdown of voucher.

breakdownofvoucherinvoicejournal

Click on Post button.

IV. VENDOR INVOICE

The fourth way for processing incoming invoices is to enter them to the Vendor invoice form.

Navigate to Accounts payable > Common > Vendor invoices > Open vendor invoices.

On the Open vendor invoices list page on the Action pane in the New button group click on Invoice button.

open-vendor-invoices

The following menu items just opens up the forms described above:

  • Invoice pool excluding posting
  • Invoice register
  • Invoice approval journal
  • Invoice journal

The only one menu items that we are going to use in this case is Vendor invoice.

Through Vendor invoice menu item, you can create an invoice for couple different cases:

1# Invoice for purchase order

An idea is that you already have purchase order and you are retrieving that information to the vendor invoice.

2# Invoice that is not for purchase order

An idea is that you don’t have purchase order. Be aware that in this case you can select items that have a product type of Item or Service, and must not be stocked.

Let’s take a look on both cases.

Case number 1, when Invoice is not for purchase order.

Click on Vendor invoice menu item.

Select an Invoice account that you want to post the invoice to.

Type the number of the invoice that has been provided by vendor in the Number field.

On the Lines grid, click Add line button

Select non-stock item/service

Click Post button on the Action Pane to post the invoice and then click Post in the form that is displayed.

If you would like to postpone invoice posting you can close this form and find your invoice later on the Pending vendor invoices list page.

vendor-invoice-creation

Case number 2, when Invoice is for purchase order.

Click on Vendor invoice menu item.

Select an Invoice account that you want to post the invoice to.

Type the number of the invoice that has been provided by vendor in the Number field.

On the Action Pane, click Retrieve purchase orders button.

Click on the Include check box for specific purchase orders and/or purchase order lines that you want to include in invoice, and then click OK.

retrieve-purchase-orders

All retrieving lines will be transferred to the invoice. You can make any changes if needed.

In the Lines grid, select an invoice line and make changes, if needed.

Do not forget to change Default quantity for lines at the at the top of the form, if needed.

default-quantity-for-lines

Here is the explanation what each Quantity type mean:

Receive now quantity – Use for partial shipments. The default value in the Quantity field is from the Receive now quantity field on the purchase order.

Ordered quantity – Use for complete shipments. The default value in the Quantity field is from the Ordered quantity field on the purchase order.

Registered quantity – Use if the item requires registration, as specified in the Item model groups form. The default value in the Quantity field is the physical update quantity that has been registered.

Product receipt quantity – Use if a product receipt has already been received for the order. The default value in the Quantity field is from the total quantity of available product receipts.

Registered quantity and services – Use if quantities have been registered in arrival journals for stocked items or items that are not stocked. This option also includes services, regardless of whether they are registered.

Once you have done, click Post button to post the invoice and then click Post in the form that is displayed.

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