You can record vendor invoices as you receive them, record
debit and credit notes from vendors, and match invoice details against
purchase orders and receipts. You can also create invoices for which
there are no purchase order numbers.
Purchasing process
The steps in the purchasing process include creating purchase
requisitions, creating purchase orders, receiving services and items,
and recording vendor invoices.
Invoice statuses
After an invoice is created, you use the invoice status
to indicate where it is in the processing cycle. Changing statuses
on invoices has implications, depending on the status being changed.
Quantity field and automatic matches
On invoices for materials, when you enter a number in the Quantity field
of the Invoice Lines tab, a search is performed
for matching material receipts. In seeking a match between an invoice
quantity and a receipt quantity, a match is made to either a single
quantity in a receipt line item or to the total quantity for a receipt.
Receipt tolerances and invoice lines
A receipt tolerance sets a limit for the quantity or the
amount that can be invoiced for a service line item or a standard
service line item. The receipt tolerance is set for an item in the
Item Master application. The receipt tolerance can be modified in
the purchase order.
Consignment payment invoices
Consignment payment invoices can be generated, either manually
or automatically, for financial transactions that occur when consignment
items are used.
Reversal of invoices
When an original invoice contains errors, such as unit
cost mistakes, you can replace the original invoice by reversing it.
The replacement for the original invoice contains the updated information.
You can reverse an invoice without creating a return transaction.
Tax-exempt status
The tax-exempt option indicates whether an item, a tool,
or a service is taxable. You might want to set the tax-exempt status,
depending on where an item or a service is acquired, and how an item
or a service is used.
Terms and conditions
You can create and maintain a library of terms and conditions
that your company and your vendors must follow on purchase order and
contract transactions. Terms and conditions can contain information
such as: liability concerns, shipping and handling details, and delivery
time expectations.
Automatic allocation of standard service costs
If your site does not use the Invoices application,
services are prorated upon purchase order approval in the Purchase
Orders application. If your site uses the Invoices application to
manage invoices, services are prorated or allocated in Invoices.
How invoice variances affect the average costs of items
When calculating the average cost of an inventory item,
the cost and currency variances are used to update inventory costs.
This action occurs when the Update Cost/Currency Variances
on Inventory Costs check box is selected. If the check
box is cleared, the variance costs are not used to update inventory
costs but are written to variance accounts instead.
Records related to invoices
If you have records that are associated with invoices,
such as purchase orders, contracts, and requests for quotations, you
can view these records. You can obtain a comprehensive look at all
of the data that are related to invoices.