Record a purchase invoice (POP)

Use this to record the details of your supplier invoices and match them to purchase orders and/or goods received notes (GRNs).

If you have chosen to use disputed invoice processing in the POP settings, you can record the supplier invoice and mark it as disputed. While the invoice is disputed it can be amended. Once an invoice is accepted and posted, it cannot be amended in the Purchase Order Processing. However you may be able to reverse the transaction in the Purchase Ledger.

Recording an invoice as received can be carried out by several people at the same time provided they are not entering invoices for the same supplier.

This is when a supplier invoice is matched to the purchase order to determine if it should be paid or queried before any payment is made.

All purchase order items regardless of type (stock, miscellaneous, service/labour and free text) are displayed when entering invoices or credit notes.

The supplier invoice is matched to the goods received note (GRN) and to the purchase order. When items are not matched to a GRN, a warning is displayed.

For invoices:

  • GRNs are always displayed for stock and miscellaneous item types.

  • GRNs are only displayed for service/labour and free text items if you have chosen to require these items be marked as received prior to being invoiced.

Discrepancies between the invoice and the purchase order or goods received record can occur. As you record an invoice, discrepancies are highlighted. In certain cases the discrepancies may prevent you from recording the invoice. If you have chosen to use disputed invoice processing on the Order Processing tab of the POP settings, then you can record such invoices and mark them as disputed.

While the invoice is marked as disputed no update to other modules is made. This means there will be no evidence of the invoice being received in either the Purchase Ledger or Nominal Ledger. The update only occurs once the disputed invoice is resolved.

When dealing with:

  • A price difference (increase or decrease), you can enter the invoice buying price and accept the discrepancy or mark the invoice as disputed (provided your system is set to process disputed invoices).

    If you are confirming the price of stock that was issued to a project at an unconfirmed cost, a Confirmed Price Adjustment transaction is created automatically in the project for any difference.

  • A quantity lower than the expected purchase quantity, indicating some or all of the goods or services have not been received, a warning is displayed. You can continue to submit the invoice.

    Note: Three-way match only (invoice matched to the GRN The Goods Received Note (GRN) number is assigned to a record when goods or services are confirmed as received. It is also applied to a record when goods are returned to a supplier during the Confirmed Goods Returned activity.): if you accept an invoice and you have not yet received the goods from your supplier, when the items are received the system will automatically mark the GRN as credited.

  • An invoice quantity that exceeds the expected quantity, you can enter the invoice quantity and accept the discrepancy or mark the invoice as disputed (provided your system is set to process disputed invoices).

    Note: If you are using a three-way match, the increased invoice quantity cannot exceed the quantity delivered for the item.

  • Invoiced goods not specified in the purchase order, then the purchase order must be amended before the invoice can be matched successfully.

  • An invoice total that doesn't match the order total, this can occur when using notional VAT rates, such as those used for reverse charges.

    This is because the Invoice total displayed will include the VAT value for notional VAT rates, but these are not included on the order total. For more information, see Notional VAT effects on order and invoice totals.

Provided an invoice is not marked as disputed, recording it as received results in an update to:

  • The invoiced quantities on the purchase order.

  • The supplier record to indicate the need to make payment.

  • The Nominal Ledger. The balance sheet nominal accounts for creditor control and VAT control are both updated.

    Postings are also made to a third nominal account to account for stock. The nominal account updated depends on the item type used to specify the goods or services in the original purchase order. For item types stock and miscellaneous the default nominal code setup on the item is used. For service/labour items or goods/services specified using free text items in the purchase order, the default nominal account setup on the supplier's account is used. However, if you amend the displayed default nominal account then the posting is made to the nominal account selected as the invoice is entered.

  • The VAT file.

  • The buying price of each item, which is marked as invoiced.

To record a purchase invoice

Open: Purchase Order Processing > Order Processing > Record Purchase Invoices.

  1. Enter the invoice details:

    • Supplier Account: Select the supplier account and the required purchase orders.

    • Invoice date: Enter an invoice date. The system date is displayed automatically.

    • Exchange Rate: If you are dealing with a foreign currency supplier, enter the required exchange rate. The exchange rate stored in the exchange rate table is displayed.

    • Reference (Optional): Enter a reference, if required.

      To check if the invoice has already been recorded, select Check. If the invoice date and reference are not unique a warning is displayed.

    • Goods Value and VAT Value (Optional): Enter the goods and VAT values from your invoice.

      This helps you to check that the values on the matched purchase order are the same as your invoice values.

      • If you enter goods and VAT values and your selected order items do not match these values, an Invoice Values Warning message is displayed when you select Post Invoice.

      • You can leave these values as 0 (zero) if you prefer not to include this check.

      Note: If you are entering the purchase invoice directly from the Confirm Goods Received screen using the Record Invoice option, you must enter these goods and VAT values. Otherwise you will see an Invoice value mismatch error when you try to post the invoice.

  2. Match to the required purchase order lines and GRNs:

    Use Find to search for an item in the displayed list and use View Order to display full details of a purchase order.

    1. Select the required purchase order lines from those displayed in the Select order items to match to invoice section of the window.

      Note: If an item has not been authorised and you have not chosen to allow processing of unauthorised purchase orders on the Order Processing tab of the POP settings, the order line will be displayed but you will not be able to select it.

    2. If required, you can change the invoice quantity in the Qty to be Invoiced column and the unit price in the Discounted Unit Price column.

      Note: The quantity will be modified if it is not an allowed amount (according to the unit's precision setting).

    Use Find to search for an item in the displayed list and use View Order to display full details of a purchase order.

    1. To display the associated GRNs, select the required purchase order lines from those displayed in the Select order items to match to invoice section of the window.

      Note: If an item has not been authorised and you have not chosen to allow processing of unauthorised purchase orders on the Order Processing tab of the POP settings, the order line will be displayed but you will not be able to select it.

    2. To match the deliveries and purchase order lines to the invoice, select the check box for the GRN and the check box for the purchase order line.

    3. If required, change the invoice quantity in the Qty to be Invoiced column and the unit price in the Discounted Unit Price column.

  3. If you are using disputed invoice processing and you want to put the invoice on hold, click Dispute Invoice.

  4. Check the information.

    To post the invoice click Post Invoice.

    The purchase ledger Enter Purchase Invoice screen appears showing the values you have entered. You can amend VAT values and take care of rounding discrepancies where required. The exchange rate cannot be amended.

    If you have system down time whilst posting purchase invoices, your invoices may not post correctly.

    The invoice details are saved, and you can post them using Purchase Ledger > Enter transactions > Batched transactions. These invoices will have a batch header title incorporating the date and time that the system down time occurred.

See also

Reference

Manage disputed invoices

Order processing (POP settings)

Correct posted supplier transactions

Manage standard cost variances

Purchase Invoices and Credits