Processing Invoices

This chapter provides an overview of invoice processing and discusses how to:

• Work with invoices.

• Process recurring invoices.

• Revise and post invoices.

Note. Country-specific functionality for processing invoices exists for Argentina, Chile, Poland, Peru, Russia, and Venezuela.

See Also

(CHL) Changing Invoice Dates for Chile

(CHL and PER) Processing Invoices for Chile and Peru

Processing Invoices with Legal Numbers for Argentina

(POL and RUS) Working with Invoices for Poland and Russia

Assigning Invoice Control Numbers

Understanding Invoice Processing

Effective management of invoice processing is fundamental to the accounts receivable department. Typically, you create an invoice before you receive payment from the customer. Most invoices are generated from other systems, such as the JD Edwards EnterpriseOne Sales Order Management system from Oracle. However, at times you will need to enter and revise invoices for customers.

Invoice processing is one example of three-tier processing. All JD Edwards JD Edwards EnterpriseOne systems use three-tier processing to manage batches of transactions. The term three-tier refers to these standard steps:

1. Enter transactions, such as invoices, receipts, and drafts.

2. Review and approve transactions for posting.

3. Post transactions to the general ledger.

This diagram illustrates the concept of three-tier processing:

Three-tier processing

Invoice Entry

Depending on the needs of the organization, you can enter invoices using these methods:

• Standard invoice entry. This method provides the most flexibility and options.

• Speed invoice entry. This method provides less flexibility and fewer options than standard invoice entry. However, it provides a quicker way of entering invoice and general ledger information.

To help determine which method of invoice entry you should use, consider these advantages and limitations of standard and speed invoice entry:

Invoice Batches

After you enter invoices, you can review and approve invoice batches, as well as revise individual invoices prior to posting them to the general ledger. You use the Invoice Journal Review program (P0011) to:

• Review and approve invoice batches.

• Add invoices to existing batches.

• Review and revise individual invoices.

• Review and revise associated journal entries.

General Ledger Posting

After you review and approve invoices, you post them to the general ledger. When you submit a batch of invoices for posting, the system:

• Selects unposted, approved invoices and validates each transaction.

• Creates automatic offsets to the A/R trade and tax accounts.

• Posts accepted transactions to the Account Balances table (F0902).

• Marks the invoices as posted in the Customer Ledger (F03B11), Invoice Revisions (F03B112), and Account Ledger (F0911) tables.

• Sends workflow messages to the work center.

• Prints a general ledger post report, a post detail error report, or both.

Working with Standard Invoices

This section provides overviews of standard invoices, the invoice entry master business function, out-of-balance invoices, credit memos, speed invoices, and revisions to unposted invoices, lists prerequisites, and discusses how to:

• Set processing options for Standard Invoice Entry (P03B11).

• Set processing options for Speed Invoice Entry (P03B11SI).

• Set processing options for Invoice Entry MBF Processing Options (P03B0011).

• Locate invoices.

• Enter standard invoices.

• Select a model for the G/L distribution entry.

• Enter invoices out of balance.

• Enter credit memos.

• Enter invoices with discounts.

• Enter speed invoices.

See Also

Entering and Processing Foreign Currency Invoices

Entering Tax Information on Invoices and Vouchers

Understanding Rounding Versus Soft Rounding

Understanding Standard Invoices

You must create an invoice record to bill a customer for goods or services. Although most invoices are generated from other systems, such as JD Edwards EnterpriseOne Sales Order Management, JD Edwards EnterpriseOne Real Estate Management, and JD Edwards EnterpriseOne Contract and Service Billing, you can enter miscellaneous invoices. The system uses default information that you set up in the customer record when you enter an invoice.

After you enter information that is specific to the invoice, you enter the G/L distribution information. You typically enter a credit to a revenue account. When you post the invoice, the system debits the offset to an A/R Trade account that you specify in the automatic accounting instructions (AAIs).

If you routinely distribute invoices to multiple G/L accounts, you can set up a journal entry to use as a model. In addition to entering basic information for a standard invoice, you can enter and revise other types of information. For example, you might want to enter an invoice for multiple line items with different due dates or tax information, or you might want to enter a recurring invoice.

Note. You cannot enter partially paid invoices into the system.

The system assigns a batch type of IB to invoices. When you enter a standard invoice, the system adds it to the Customer Ledger and Account Ledger tables. When you post an invoice batch, the system updates the F0902 table and marks the invoice as posted in these tables:

• F03B11.

• Invoice Revisions (F03B112), if revisions exist.

• F0911.

• Batch Control Records (F0011).

The system assigns document types to invoices and credit memos that you specify in the processing options for the Invoice Entry MBF Processing Options program (P03B0011). You specify the version of the MBF program that you want the system to use in the processing options for Standard Invoice Entry (P03B11), and then specify the version of Standard Invoice Entry processing options that you want to use in the processing options for Customer Ledger Inquiry (P03B2002). Generally, an invoice is assigned a document type of RI and a credit memo is assigned a document type of RM.

Category Codes

When you enter an invoice, the system automatically updates category code fields (AR01 through AR10) on the invoice record (F03B11) with values from the Customer Master by Line of Business table (F03012) based on the company number. If you do not have category code values established for the company that you enter on the invoice, the system does not use values that are established for company 00000.

If you do not use line of business processing, the system always uses values for company 00000.

Default Information

If you specify a default revenue account or a model journal entry in the customer record, the system uses this information as the default revenue account in the detail area of the G/L Distribution form. The total invoice amount appears as a credit in the Amount field. If necessary, you can override any of this information.

Updating the Account ID Field

When you enter an invoice, the system updates the Account ID (AID) field on the invoice record (F03B11) with the short account ID of the A/R trade account that it will use for the automatic offset. The system locates the account number from AAI item RC for the G/L offset and company that are specified on the invoice. If the AAI does not contain a business unit, the system uses the business unit that is specified on the invoice pay item.

Creating Multiple G/L Distributions as a Percent

To create multiple G/L distribution amounts as a percent, select the Percent option in the header area of the G/L Distribution form. Then, specify the percentage that you want to distribute in the % (percentage) field in the detail area. The system calculates the amount. The total of all distribution lines must equal 100 percent.

Enter the percent as a whole number. For example, 25 percent should be entered as 25.0, not .25.

Entering G/L Distribution Based on a Model

To simplify the entry process, you can set up and use model journal entries. You set up model journal entries when you have vouchers and invoices that use the same account distribution. You can select the model at the time you enter the G/L distribution for the transaction, or you can set up a default model for the system to use on the supplier or customer record.

Discounts

You can enter invoices with discounts as incentive to issue and receive payments early. When you enter an invoice with a discount, the system calculates the discount and net due dates according to the payment terms that are assigned to the transaction.

Three methods are available for entering discounts:

• Using payment terms. You enter an invoice, specifying the payment terms. The system calculates the discount available and due dates from the payment terms. If you want to override the discount amount to zero, you must establish a payment term that does not calculate a discount, then use that payment term on the Standard Invoice Entry form.

  If you change a payment term to recalculate a new discount amount or due date, remove the system-calculated information by clearing these fields:

  • Discount Available

  • Discount Due Date

  • Net Due Date

• If you change the payment terms but not the other discount fields, the system will not recalculate the discount information.

• Entering a discount amount. You enter an invoice, specifying the discount available and, optionally, discount and net due dates.

• Entering a discount percentage. You enter an invoice, specifying the discount percentage and, optionally, discount and net due dates.

Attachments

You can add comments to invoices and general ledger account information by entering attachments. Attachments are for internal reference only and do not appear on reports, invoices, or statements. For example, you might enter customer instructions that regard invoice revisions or voids.

You can add attachments to invoice pay items on the Work with Customer Ledger Inquiry form or on the Standard Invoice Entry form. You cannot add attachments to invoice pay items while you are entering the invoice because the invoice record does not exist until you click OK. Additionally, you cannot add attachments to invoice pay items that are summarized on Work with Customer Ledger Inquiry.

Unlike invoice pay items, you can add attachments to general ledger accounts as you enter that information on the G/L Distribution form because the system has assigned the document number, type, and company to the record by the time you enter general ledger information.

The types of attachments that you can add are:

• Text

• Image

• OLE

• Shortcut

• URL/File

After you add the attachment, the system displays a paper-clip button next to the invoice pay item or G/L distribution line. The procedure to enter attachments is the same regardless of the program or system that you use.

Understanding the Invoice Entry Master Business Function

The purpose of a master business function (MBF) is to provide a central location for standard business rules about entering documents, such as invoices, vouchers, and journal entries. Master business functions have processing options. You complete the MBF processing options, and then specify the version of the MBF that you want the system to use in the processing options of the entry program.

The system uses the Invoice Entry MBF Processing Options (P03B0011) when invoices are created using these programs:

• Standard Invoice Entry (P03B11)

• Speed Invoice Entry (P03B11SI)

• Batch Invoice Processor (R03B11Z1A)

Additionally, invoices are generated from applications in these systems:

• Sales Order Management

• Contract and Service Billing

• Real Estate Management

It is the responsibility of the program that uses the Invoice MBF to state which version of the MBF will be used. If no version is explicitly specified, the system uses version ZJDE0001.

Understanding Out-of-Balance Invoices

Under normal circumstances, when you enter an invoice, you enter two sides of the transaction: the invoice, and the G/L distribution. The system requires that the amounts of both sides equal each other before you can complete transaction entry. If you quit the G/L distribution form before completing the entry, you lose the information in the invoice and must re-enter the transaction in its entirety.

To save work that you have completed, you can exit an invoice out of balance, and then complete the G/L distribution entry at a later date. Because the post program requires every transaction in the batch to be in balance, you have a safeguard against accidentally posting a transaction that is out of balance.

Important! Although you can enable the system to post transactions that are out of balance, you should not use this procedure. If you post a transaction that is out of balance, the system does not update all the appropriate accounts, and you will encounter an integrity issue.

See Revising Batches to Post Out of Balance.

Understanding Credit Memos

When a customer is overcharged and you want the customer's statement to reflect the correction, you enter a credit memo. You follow the same steps that you do when you enter an invoice, except that you enter the gross amount as a credit.

The system uses the Invoice Entry MBF Processing Options program to retrieve the value for the document type that it assigns to the credit memo. Generally, a credit memo is assigned a document type of RM. The system uses a different next number to assign the document number for credit memos than it does for invoices. Additionally, the system assigns the G/L date as the due date for credit memos.

The system will calculate a discount for the credit memo if the payment term is set up appropriately. Because you enter the gross amount as a negative number (credit), the system calculates a negative discount in the Discount Available field. To remove the negative discount, override the Payment Terms field with a payment term that does not calculate a discount and clear the Discount Available field before you clickOK.

Note. You specify the version of the Invoice Entry MBF Processing Options program that you want the system to use in the processing options of the Standard Invoice Entry program, and then specify the version of the Standard Invoice Entry program that you want to use in the processing options of the Customer Ledger Inquiry program.

Understanding Speed Invoices

As an alternative to Standard Invoice Entry, you can use Speed Invoice Entry to enter high-volume, simple invoices. When you enter speed invoices, you enter invoice and G/L distribution information on one form. Consider using this method to enter invoices that have a single pay item, which includes a single due date and a single tax rate area, and to enter invoices that are not recurring.

When using Speed Invoice Entry, you cannot revise or delete an invoice.

As with standard invoices, speed invoice information is stored in these tables:

• F03B11

• F0911

• F0011

  Note. When you use Speed Invoice Entry, the system does not display the G/L Offset field. The system retrieves the value, if one exists, from the customer master record. If you want to override the value, you must use the Standard Invoice Entry program.

Understanding Revisions to Unposted Invoices

After you enter an invoice, you might need to revise it. You revise invoices using the Standard Invoice Entry program, which you access from Customer Ledger Inquiry or Invoice Journal Review.

Note. Before you revise unposted invoices, you must verify that the Customer Self-Service processing option for Customer Ledger Inquiry is not selected. If the processing option is selected, you cannot revise invoices.

Although you cannot revise every field, you can make changes to these fields on unposted, unpaid invoices:

• Payment Term

  If you change the payment term, you must clear the Discount Amount, Discount Due Date, and Due Date fields for the system to automatically recalculate the values based on the new payment term.

• Gross Amount

  The system automatically recalculates the open amount.

  If you change the gross amount, you might need to revise the discount amount. The system does not automatically recalculate the discount when you change the gross amount. To recalculate the discount from the payment term, clear the Discount Available field.

  If you change the gross amount, you might need to revise taxable and tax amounts. The system does not automatically recalculate taxable and tax amounts when you change the gross amount. To recalculate taxable and tax amounts based on the tax rate area, clear the Taxable and Tax fields.

  If you change the gross amount, the system displays the G/L Distribution form automatically.

• Remark

• Discount Available

• Due Date

• Discount Due Date

• G/L Offset

• PS (pay status)

  You cannot change the pay status if the value is P (paid).

• Freq (frequency)

• No Pymts (number of payments)

If you need to revise information in any other field, you must delete the invoice and re-enter it.

To quickly change specific information for several invoices at the same time, such as discounts, use the Speed Status Change program (P03B114).

Important! When you revise invoices that are generated from other systems, such as Sales Order Management, the system returns a message that recommends that you make the revision in the originating system, and then reprocess the invoice. The system stores the originating system code in the OMOD (Originating Module) field.

When you revise an invoice, the system attempts to recalculate domestic and tax amounts, even if you do not attempt to revise an amount field. For example, if you revise the invoice remark on a foreign invoice with taxes, the system will:

Attempt to recalculate the tax and gross amount on the invoice. If the gross amount does not equal the taxable plus taxable amounts, within the tolerance ranges that are established in the Tax Rules by Company, the system returns a warning or error and the change will not be accepted.

Recalculate the domestic amounts. If the system calculates a different value for the domestic gross, taxable, or tax amounts, this might cause an out-of-balance condition between the invoice and G/L distribution, or an integrity issue between the two systems (for example Sales Order Management and Accounts Receivable).

See Also

Understanding Speed Status Change

Prerequisites

Before you complete the tasks in this section:

• Set up customer records.

• Set the appropriate processing options for the Customer Ledger Inquiry program.

• Set the appropriate processing options for these programs:

  • Standard Invoice Entry (P03B11)

  • Speed Invoice Entry (P03B11SI)

  • Invoice Entry MBF Processing Options (P03B0011)

  • Journal Entry MBF Processing Options (P0900049)

    To access the processing options for these programs, select Interactive Versions from the System Administration Tools menu (GH9011).

• Set up AAI item RC.

Forms Used to Work with Standard Invoices

Setting Processing Options for Standard Invoice Entry (P03B11)

Processing options enable you to specify the default processing for programs and reports.

Display

These processing options specify whether the system displays fields for purchase orders, taxes, and foreign amounts on the Standard Invoice Entry form.

Versions

Use these processing options to specify the version of the master business functions for the system to use to process invoices.

Setting Processing Options for Speed Invoice Entry (P03B11SI)

Processing options enable you to specify the default processing for programs and reports.

Display

These processing options specify whether the system displays the tax and purchase order fields on the form.

Versions

These processing options specify the version of the program to use when you add an invoice.

Defaults

This processing option specifies how the system displays credit amounts.

Setting Processing Options for Invoice Entry MBF Processing Options (P03B0011)

Processing options enable you to specify the default processing for programs and reports.

Defaults

These processing options specify the default values for the system to use for various fields.

Edits

These processing options specify the rules for entering the invoice date.

Taxes

This processing option specifies whether to allow the entry of value-added tax (VAT) (tax explanation code V) on foreign invoices.

Currency

These processing options specify the rules for using exchange rates.

Versions

This processing option specifies the version of the Invoice Interoperability Processing Options program (P03B0190) to run.

Locating Invoices

Access the Work with Customer Ledger Inquiry form.

Customer	Enter the address book number of the customer.
Parent	Enter the address book number of the customer's parent company. The system returns customer records for both the parent and children. The system does not return records for grandchildren and subsequent levels of parent/child relationships.
Batch Number	Enter the batch number for which you want to review invoices.
Invoice No From (invoice number from) and Thru (invoice number through)	Enter the range of invoice numbers that you want to review.
All, Paid, and Open	Select one of these options to display invoices as described: All: Display all invoices Paid: Display only paid invoices Open: Display only unpaid invoices Note. You must select the All option if you use the As Of Date feature.
Date From and Thru (date through)	Enter the date range for which you want to review invoices.
Invoice Date, Due Date, G/L Date, and Statement Date	Select one of these options to indicate the type of date that is used when you enter dates in the Date From and Thru fields.
As Of Date	Enter the date to review invoices for a specific time. The system compares the G/L date of the receipt to the As Of date that you enter to determine whether the invoice was open or paid on that date, and then displays the invoices. You must set the pay status option to All to use the as of feature correctly.
Recurring Invoice	Select to display recurring invoices. If you select this option, the system displays only invoices that have recurring information, such as the number of payments and frequency.
Summarize	Select to display invoices in summary mode. When this option is selected, invoices with multiple pay items appear as a summarized record, with an * in the Pay Item field. When the option is not selected, invoice pay items appear as separate records.

Entering Standard Invoices

Access the Standard Invoice Entry form.

To enter standard invoices:

1. To assign the document number, document type, and document company, complete the Document No/Type/Co optional fields in the header area.

   You should let the system assign the document number from Next Numbers, the document type from the Invoice Entry MBF Processing Options program, and the document company from the company number that you assign to the invoice. The system assigns this information when you click OK at the end of this task.

2. Complete the Customer, Company, Invoice Date, and G/L Date fields in the header area.

3. (Optional) Override the value in the Payment Terms field, if necessary.

4. Select Additional Info from the Form menu to access the Additional Information form.

5. (Optional) Override the value for any of the fields on the Additional Information form, if necessary, and then click OK to return to the Standard Invoice Entry form.

6. In the detail area of the Standard Invoice Entry form, complete the Gross Amount field.

7. (Optional) In the detail area, complete the Remark, Pymt Terms, Business Unit, Due Date, and G/L Offset fields for each pay item.

   The system completes the Pymt Terms field with the value that is assigned in the header portion of the form, but you can override it for any or all invoice pay items.

   Note. If you change the payment terms code after you have entered the pay item, you must clear the values in the Discount Available, Due Date, and Discount Due Date fields so that the system can calculate new values.

8. Click OK to access the G/L Distribution form.

   If an error occurs during entry, the system highlights the first field that is in error. To view the error, select Display Errors from the Help menu.

   After you enter invoice information, enter the detail lines that distribute the invoice amount to the G/L accounts. You must distribute the entire amount of the invoice, or the system will issue an error message.

9. On the G/L Distribution form, complete the Account Number and Amount fields in the detail area for each G/L distribution.

10. (Optional) Complete the Explanation -Remark field, and click OK.

    Note. If you are using Advanced Cost Accounting, you might also need to complete the Cost Object and Object Type fields.

    See Understanding Cost Object Tracking.

Standard Invoice Entry

These fields are used on the Standard Invoice Entry form.

Additional Information

These fields are used on the Additional Information form.

G/L Distribution

These fields are used on the G/L Distribution form.

See Also

Working with Model Journal Entries

Setting Up Customer Master Information

Selecting a Model for the G/L Distribution Entry

Access the Model Journals Search & Select form.

On Model Journals Search & Select, select the appropriate model and click Select.

The system displays the model on Enter Voucher - G/L Distribution or G/L Distribution. You can now add or revise the actual journal entry based on the information from the model.

Entering Invoices Out of Balance

Access the Standard Invoice Entry form.

To enter an invoice out of balance:

1. Follow the steps to enter a standard invoice.

2. On the G/L Distribution form, complete the Account Number and Amount fields with available information.

3. To save the entry out-of-balance, select Features from the Form menu.

4. On Features, select the Allow Exit Out Of Balance option.

5. Click OK.

6. On the G/L Distribution form, click OK.

Entering Credit Memos

Access the Standard Invoice Entry form.

To enter credit memos:

1. Follow the steps to enter basic invoice information.

2. In the detail area of the form, enter a negative amount in the Gross Amount field, and click OK.

3. Complete the necessary G/L distribution information.

   You must enter the amount on the G/L Distribution form as a debit (positive amount) when you enter credit memos.

Entering Invoices with Discounts

Access the Standard Invoice Entry form.

To enter invoices with discounts:

1. Follow the steps to enter a basic invoice.

2. To specify a discount percent, verify that the Discount % option is selected.

   The system automatically selects the Discount % option when you enter an invoice. It calculates the discount available amount when you specify a percentage in the detail area. You enter the discount percentage as a decimal. For example, you enter .02 for a 2 percent discount.

   You can override the calculated amount by specifying a different amount in the Discount Available field.

   If you do not select this field, the system does not display the Disc Percent (discount percent) field in the detail area of the form.

3. To calculate the discount based on a payment term, complete the Payment Terms field.

   If a default value is set up in the customer master record, the system completes the field with the value. You can override the payment term, if desired, or override the discount percent or discount available in the detail area.

4. (Optional) In the detail area, override or complete the Pymt Terms (payment terms), Disc Percent, and Discount Available fields.

   The system assigns the payment term value from the header area to each corresponding pay item in the detail area. You can override the default value at the pay item level, if desired. The discount available field must be blank to recalculate a discount amount based on a new payment term.

   If you want to override the discount to zero, you must set up a payment term that does not calculate discounts.

   The system does not store the discount percent. Therefore, the system does not calculate or recalculate the discount percent based on the discount amount that you enter or change.

   If you override the discount amount, you do not need to change the Payment Term field or the Disc Percent field.

   Note. If you use a split or installment payment term, the system does not update the discount fields until you finish entering the invoice. You must reinquire on the invoice to view the gross, discount, and tax amounts divided among the multiple pay items.

5. (Optional) Complete the Due Date and Discount Due Date fields, and click OK.

6. Complete the necessary G/L distribution information.

   Discount %	Select to display the Disc Percent field in the detail area of the form, which enables you to specify the discount amount as a percentage of the gross amount.
   Disc Percent	Enter the percent of the total invoice that you will discount if it is paid within the discount period. You enter the discount percent as a decimal, for example, a 2 percent discount is entered as .02.
   Discount Available	Displays the amount of the invoice pay item that is eligible to be subtracted from the gross amount when the transaction is paid. The system calculates discount amounts based on the payment term that is entered on the transaction. Note. If the system calculates the discount, verify that it applies to the pay item that is specified. Usually, freight, sales tax, and labor charges that are included in the gross amount do not qualify for discounts.
   Discount Due Date	Displays the date that the invoice must be paid to receive the discount. The system calculates the discount due date based on the payment term. If the payment term does not specify a discount, the system completes this field with the net due date.

Entering Speed Invoices

Access the Speed Invoice Entry form.

Depending on how you set the processing options, you enter the amount as a positive or negative number.

Processing Recurring Invoices

This section provides overviews of recurring invoices, revisions to recurring invoices, and the recycle process and discusses how to:

• Enter recurring invoices.

• Review recurring invoices online.

• Print the Recurring Invoice Report.

• Set data selection and data sequencing for Recurring Invoice Report (R03B305).

• Set processing options for Recurring Invoice Report (R03B305).

• Revise a recurring invoice.

• Recycle recurring invoices.

• Set processing options for Recycle Recurring Invoices (R03B8101).

Understanding Recurring Invoices

If you need to bill a customer for the same amount on a regular basis, such as monthly or quarterly, you can enter a recurring invoice. When you enter a recurring transaction, you indicate the total number of invoices that you want the system to create and the interval for them. For example, if you bill every month for one year, you can set up a recurring invoice for 12 payments with a monthly frequency. Then, instead of entering an invoice each month, you run a recycle program that creates a new transaction from the original. The system assigns a new document number and batch number to the new transaction and reduces the number of transactions by one. You continue to recycle and create new transactions until one invoice remains.

You use the Standard Invoice program to set up the recurring invoice by entering the number or payments and recurring frequency. You do this by using either the Recurring Invoice form, which you access from the Form menu, or by completing the frequency and number of payments fields in the detail area of the invoice.

When you enter a recurring invoice, the system assigns a document type of RR, The system stores recurring invoice information in the F03B11 table.

Before sending the invoice to the customer or recycling it next month, you might want to verify its accuracy. You can review recurring invoices online or print them on a report using these programs:

• Recurring Invoice Review (P03B120)

• Recurring Invoice Report (Invoice Journal) (R03B305)

Normally, you review invoices online. However, if you have numerous invoices to review, the report might be a more usable format. The Recurring Invoice Report program is the same as the Invoice Journal. The system provides a specific version (Recurring Invoice Review) that has the data selection set to limit the report to recurring invoices only and has processing options set to print recurring information, such as the frequency and number of payments. It prints transactions from the F03B11 table and related information from the F0911 table. You can use this report to determine which invoices have outstanding payments and when those payments are due.

Understanding Revisions to Recurring Invoices

Before recycling recurring invoices, you might need to revise them. For example, a customer might decide to extend or terminate a rental or service agreement, which would require you to change the number of payments; or you might need to increase the cost of the invoice to cover additional costs that you incur to maintain the property or equipment.

The system assigns a new document number to each new invoice that is recycled, ensuring that when you revise a recurring transaction, no conflicts exist with the old recurring transaction information. When you revise a recurring invoice, you can:

• Change selected fields.

• Cancel the recurring portion of the transaction.

• Delete or void the recurring transaction.

Canceling Recurring Invoices

You can cancel a recurring invoice by clearing the Recurring Frequency and Number of Payments fields. Removing values in these fields prevents the transaction from being recycled by the system. If you remove the recurring information in error, you can add it back on the transaction by using the standard entry program and entering the recurring information into the detail line.

Canceling a recurring transaction does not change the document type; however, you will not be able to locate the transaction by using the recurring option on the ledger inquiry programs.

Adding Recurring Information to an Existing Transaction

If you enter an invoice that is not recurring and want to add recurring information, use the standard entry program and enter the frequency and number of payments into the detail area. The system does not change the document type of the transaction when you add recurring information to it. The document type changes the next time the invoice is recycled.

See Also

Revising and Posting Invoices

Understanding the Recycle Process

After you enter, review, and revise recurring invoices, you recycle them to create a new batch of transactions for the next month, quarter, or year. The Recycle Recurring Invoices program (R03B8101) generates a new transaction based on the number of payments and the recurring frequency that you specified when you created the original recurring transaction. When you recycle an invoice, the system makes a copy of the previous transaction and updates the appropriate fields. It repeats this process every time you run the recycle program until the number of payments equals one. When one payment remains, the transaction no longer recycles. For example, to set up a recurring invoice for one year, you set the number of payments to 12. Because the original transaction is the first payment, the recycle program does not consider transactions that have one payment remaining.

You do not have to pay an existing invoice or voucher to generate the next cycle of recurring transactions.

This process updates information in these tables:

• F0011

• F03B11

• F0911

When you recycle recurring invoices, the system:

• Removes the recurring frequency and number of payments from either the original transaction or the most recent copy of the transaction.

• Creates a new invoice and updates the:

  • Document number with a new number.

  • Batch number with a new number.

  • Number of payments (decreases by one).

  • G/L date and net due date, using the recurring frequency to calculate the next date.

  • Invoice date according to the processing options.

  • Invoice number (vouchers only) according to the processing options

• Creates an exception report that lists the number of invoices that were successfully recycled, and the number of transactions that could not be recycled due to errors (exceptions). You can view error messages in the Work Center. These errors include:

  • No accounting distribution records created. This occurs when no records are found in the Account Ledger table for the recurring invoice or voucher.

  • G/L date is for a prior fiscal year (PYEB).

  • G/L date is for a prior period (PBCO), and Allow PBCO Postings is not selected in the General Accounting Constants program (P0000).

  • G/L date does not occur in a fiscal date pattern for the company.

After recycling recurring invoices, you must post them to the general ledger.

A customer does not have to pay an existing invoice to generate the next cycle of recurring transactions.

Forms Used to Process Recurring Invoices

Entering Recurring Invoices

Access the Standard Invoice Entry form.

To enter recurring invoices:

1. Enter the necessary header information.

2. From the Form menu, select Recurring Invoice.

3. On Recurring Invoice, complete the Recur Frequency (recurring frequency) and Number of Payments fields, and click OK.

4. On Standard Invoice Entry, complete the necessary detail fields, and click OK.

   If you add an invoice with multiple pay items, the system adds the recurring information to each pay item. You can override the recurring information as necessary.

   Important! When a recurring invoice contains multiple pay items with different frequencies and number of payments, the transaction might become out of balance when you run the Recycle Recurring Invoices program (R03B8101). For example, you enter a recurring invoice with two pay items. The first pay item for 1,000.00 contains a recurring frequency of monthly (MO) and a number of payments of 12. The second pay item for 25.00 contains a recurring frequency of quarterly (QT) and a number of payments of 4. When you recycle the invoice pay item with the MO frequency, the system allocates the G/L distribution amount of both pay items (1,025.00) on the newly generated invoice amount causing the transaction to be out of balance by 25.00.

5. Complete the necessary G/L distribution information.

   Recur Frequency (recurring frequency)

   Enter the code to specify the time interval between which the system creates transactions. Valid recurring frequency values are: MO: Monthly AN: Annually WK: Weekly QT: Quarterly SA: Semiannually BW: Biweekly

   Number of Payments

   Enter the number of recurring invoices that the system processes. This number includes the original transaction that you enter. For example, if you enter 12, the system will process the transaction 11 additional times, reducing the value of the number of payments by 1 each time it creates a new transaction. When this field contains a value of 1, the system does not create a new transaction. Instead, the system clears the field.

Reviewing Recurring Invoices Online

Access the Work With Recurring Invoices History form.

To review recurring invoices online:

1. Display and review invoices in the detail area.

2. To review the invoice information on one form instead of in the detail area, select an invoice, and then select Detail from the Row menu.

   Note. You can also access recurring invoices on the Work with Customer Ledger Inquiry form. To do so, select the Recurring Invoices option, and then click Find.

Printing the Recurring Invoice Report

Select Other Invoice Entry Methods (G03B111), Recurring Invoice Report.

Setting data selection and data sequencing for Recurring Invoice Report (R03B305)

If the company creates additional versions of this report, you must use data sequence in the order listed:

• User ID (alphabetical order)

• Batch Date

• Batch Number (most recent date first)

• Document Company

• Document Type

• Document Number (ascending order)

• Pay Item

Setting Processing Options for Recurring Invoice Report (R03B305)

Processing options enable you to specify the default processing for programs and reports.

Print

This processing option specifies the format to use to print the account numbers on the report.

Revising a Recurring Invoice

Access the Revise Recurring Invoice Information form.

If an invoice is paid, you can update the Recur Frequency and # of Payments fields only.

Note. You can also revise other nonrecurring invoice information from the Work With Recurring Invoices History form. Select the invoice, and then select Invoice from the Row menu. On Standard Invoice Entry, revise the necessary fields.

Recycling Recurring Invoices

Before you recycle recurring invoices:

• Set up a separate version of the Recycling Recurring Invoices program (R03B8101) for each recurring frequency that you use, such as monthly, quarterly, or annually. Use data selection to select a specific frequency (optional).

• (Optional) Set up a next number series for recurring invoices.

To recycle invoices, select Recycle Recurring Invoices from the Other Invoice Entry Methods menu (G03B111).

Setting Processing Options for Recycle Recurring Invoices (R03B8101)

Processing options enable you to specify the default processing for programs and reports.

Process

This processing option specifies the invoice date to assign to invoices.

Revising and Posting Invoices

This section provides an overview of the deletion of invoices and invoice pay items, the invoice post process, revisions to posted invoices, invoice voids, and speed status change and discusses how to:

• Review or revise unposted invoices.

• Post invoices.

• Revise posted invoices.

• Void a posted invoice

• Void a posted invoice pay item

• Set processing options for Speed Status Change (P03B114).

• Update an individual invoice using speed status change.

• Update a group of invoices using speed status change.

See Also

Working with Batches

Posting Foreign Currency Invoices

Understanding the Financial Post Process

Understanding the Deletion of Invoices and Invoice Pay Items

You can delete an unpaid invoice before it is posted. When you delete an invoice, the system does not keep a record of the deletion; the record is removed from the system. The system removes deleted invoices from these tables:

• F03B11

• F03B112

• F0911

If the batch does not contain any other invoices, the system also deletes the Batch Control Record; otherwise, it updates the record.

Note. You cannot delete invoices with these document types: R1, RU, RB, and R5. These types of invoices are generated from the receipt system and have a batch type of RB, not IB. The system creates these documents with a posted code of D, regardless of whether the receipt batch is posted.

See Deleting and Voiding Receipt Information.

To delete an unposted invoice, locate the invoice that you want to delete on the Customer Ledger Inquiry form and click Delete, and then click OK to confirm the deletion.

Important! You must delete invoice pay items from Standard Invoice Entry. If you delete an invoice pay item from Customer Ledger Inquiry, the system deletes all associated invoice pay items. Therefore, use Customer Ledger Inquiry to select the invoice pay item, and then click Select. On Standard Invoice Entry, select the invoice pay item and click Delete, and then click OK to confirm the deletion.

Understanding the Invoice Post Process

When you post invoice batches, the system:

• Verifies that the batch has an approved status.

• Searches for invoices that do not have a posted code or that have a posted code of P.

• Verifies that a corresponding record exists in the F0911 table and that the amounts balance to the invoice amount.

• Creates automatic entries.

• Updates the F0902 table.

• Changes the posted code on invoices to D.

• Changes the posted code on corresponding records in the F0911 table to P.

• Changes the posted code on the batch control record to D.

If the system detects an error on one invoice transaction, the entire batch is in error and the system does not post any records. The system sends a workflow message and produces an error report.

This diagram illustrates the invoice post process:

Invoice post process

Automatic Entries Created by the Invoice Post

When you post invoice batches, the system creates automatic entries to the tax, intercompany settlement, and A/R trade accounts. The offset amount to the A/R trade account is controlled by the AAI item RC. The program uses the company number and the G/L offset from each invoice to locate the AAI item RC. This item contains the offset account to which you are posting.

During the post process, the system retrieves this information for the automatic entry record based on the offset method that you specify in the A/R Constants:

• Automatic offset amounts.

  • If the offset method is B, the system accumulates invoice amounts and creates one automatic entry for the entire batch of invoices.

  • If the offset method is S, the system accumulates pay item amounts and creates one automatic entry for each invoice.

  • If the offset method is Y, the system creates one automatic entry for each invoice pay item.

• Document number.

  • If the offset method is B, the system assigns the batch number as the document number of the AE entry.

  • If the offset method is Y or S, the system assigns the document number of the invoice as the document number of the automatic entry.

• Account number description.

  • If the offset method is B, the system writes Accounts Receivable - Trade/Offset by Batch IB (invoice batch number).

  • If the offset method is Y or S, the system writes Accounts Receivable - Trade/Offset by Document RI (invoice document number).

• G/L Date - The system always uses the G/L date of the invoice, regardless of the offset method.

If the invoice includes taxes, the system generates an automatic offset with the same characteristics, except that the account description is from the AAI item RT (receivables tax). It records the tax amount in the Taxes table (F0018), based on a processing option.

Note. Although posting out-of-balance batches prevents the system from creating intercompany settlements, posting out-of-balance does create AE entries to the A/R trade account.

Automatic Offset Method Y (Detailed)

If you use offset method Y, the posting process creates one offset for each document, even if the invoice document contains both positive and negative pay items.

Note. (FRA) Users in France should use offset method Y because it maintains the correct separate debit and credit balances, even if positive documents (invoices) and negative documents (credit memos) are included in the same batch.

In this example, the batch includes an invoice with two items: one for 10,000, and one for 5,000. The batch also includes a credit memo with two items: one for 3,000, and one for 1,000. The posting process created two automatic entries: a debit of 15,000 to offset both items on the invoice, and a credit of 4,000 to offset both items on the credit memo.

Automatic Offset Method S

If you use offset method S, the posting process creates one offset for each pay item, including discounts and tax. Method S creates multiple records in the General Ledger table, but maintains the correct debit and credit balances within the French legal system. This offset method creates a large number of automatic entries, which considerably increases the size of the General Ledger table.

In this example, the batch includes an invoice with two items: one for 10,000, and one for 5,000. The batch also includes a credit memo with two items: one for 3,000, and one for 1,000. The posting process created four automatic entries: debits of 10,000 and 5,000 to offset both items on the invoice, and credits of 3,000 and 1,000 to offset both items on the credit memo.

Automatic Offset Method B

When you use offset method B, the system creates a cumulative automatic entry that does not include separate debit and credit totals.

Note. (FRA) If offset method B is used to post transactions in France, procedures should be established to control the entry of different types of transactions, such as invoices and debit notes, in the same batch for posting.

Although it is a common business practice, businesses in France are not legally required to provide a detailed journal to justify the offset to the bank account for each payment or receipt. If multiple payments and receipts are made on the same bank account, printing one cumulative entry for the bank account is acceptable.

If you use offset method B, you can use the Transaction Journal to justify the centralized automatic entries that the system creates when you run the General Journal Report.

In this example, the batch includes an invoice with two items: one for 10,000, and one for 5,000. The batch also includes a credit memo with two items: one for 3,000, and one for 1,000. The posting process created one automatic entry: a debit of 11,000 to offset all items. The system uses the batch number as the document number of the automatic offset.

Understanding Revisions to Posted Invoices

After you post an invoice, but before it is paid, you can revise it. For example, after entering, you might need to revise the gross amount or G/L account information. When you revise or void a posted invoice, the system:

• Removes the posted code on the invoice.

• Adds a record to the Invoice Revisions table (F03B112).

• Updates the A/R Post Status field (ISTR) to 1 on the invoice record.

  The system displays this field in the Revisions Made column on the Work with Customer Ledger Inquiry form. Regardless of the number of revisions you make to an invoice, the Revisions Made column always displays 1.

You can revise these fields on a posted, unpaid invoice:

• Gross Amount

  The system automatically recalculates the open amount.

• Remark

• Discount Available

  If you clear this field, the system automatically recalculates the discount amount based on the payment term.

• Due Date

• Discount Due Date

• PS (Pay Status)

  You cannot change the pay status if the value is P (paid).

Any revision that you make to an invoice on the Standard Invoice Entry form changes the status of the batch from posted to unposted and requires you to repost it. To eliminate the necessity of reposting the batch, use Speed Status Change to revise information that does not affect the invoice gross amount or G/L account information. If you need to change information in any other field, you must void and re-enter the invoice.

Understanding Invoice Voids

To remove a posted invoice or invoice pay item from the general ledger, you must void it and then post the batch again; you cannot delete a posted invoice.

When you void an invoice, you specify the G/L date to use to reverse the entries from the general ledger. You can void an invoice from either the Work with Customer Ledger Inquiry or Standard Invoice Entry form.

Important! If you void an invoice pay item using the Work with Customer Ledger Inquiry form, the system voids the entire invoice.

If you void an invoice pay item only, you must use the Standard Invoice Entry form, and you cannot specify a void G/L date; the system always uses the G/L date on the invoice.

When you void an invoice, the system:

• Updates the gross amount to zero.

• Removes the posted code from the invoice.

• Updates the payment status code to P (paid).

• Creates a record in the F03B112 table as an audit trail for the change in gross amount.

• Updates the A/R Post Status field (ISTR) in the Customer Ledger record (F03B11) to 1.

  The system displays the value of this field in the Revisions Made column in Customer Ledger Inquiry.

After you void an invoice, you must post the batch again.

To void a paid or partially paid invoice, you must first void the customer's payment.

Note. You cannot void invoices with these document types: R1, RU, RB, and R5. These types of invoices are generated from the receipt applications and have a batch type of RB, not IB. The system creates these documents with a posted code of D, regardless of whether the receipt batch is posted.

See Deleting and Voiding Receipt Information.

Understanding Speed Status Change

You use Speed Status Change when you want to revise invoice information that does not affect the general ledger, such as the due date, discount amount, remarks, and so on. You can revise invoices more quickly using Speed Status Change because you make the change on a single form, bypassing the general ledger information.

You also use Speed Status Change to determine whether an invoice is available for delinquency notification and fees. For example, you can prevent certain invoices from having delinquency fees generated for them, or invoices from appearing on a delinquency notice.

Speed Status Change enables you to update individual invoices, as well as make changes to a group of invoices globally. For example, you might want to extend the discount period for a preferred customer. The most efficient way to do this is to update the discount due date on all of the invoices for the customer globally.

When you update invoices using Speed Status Change, the system updates the F03B11 table only.

Forms Used to Revise and Post Invoices

Reviewing or Revising Unposted Invoices

Access the Invoice Journal Review form.

To review or revise unposted invoices:

1. To verify that the amount of the journal entry is equal to the amount of the invoice, review the J.E. Bal (journal entry balanced) field.

2. To review general ledger information, select G/L Distribution from the Row menu.

3. Click Cancel to return to Invoice Journal Review.

4. To revise invoice information, select Invoice Entry from the Row menu.

5. On Standard Invoice Entry, change the information in any field that the system allows.

6. Select G/L Distribution from the Form menu.

7. On G/L Distribution, revise the information in any available field and click OK.

   Note. If you revise an invoice that is posted, the system automatically changes the batch status from posted to the default entry status, either pending or approved, depending on the setting in the A/R constants.
   
   If you revise an amount, you must post the batch again to update the F0911 and F0902 tables. The post processes only the changed transaction.

Posting Invoices

Select Customer Invoice Entry (G03B11), Post Invoices to G/L.

Revising Posted Invoices

Access the Work with Customer Ledger Inquiry form.

To revise posted invoices:

1. Locate the invoice that you want to revise, and then click Select.

2. On Standard Invoice Entry, revise the information in any available field, and then click OK.

   If you change the gross amount, you might need to revise the discount amount. The system does not recalculate the discount when you change the gross amount.

   If you change the gross amount, the system displays the G/L Distribution form automatically.

3. On the G/L Distribution form, complete the Account Number and Amount fields on a new grid line to create a balancing entry.

   Enter the amount as a credit.

4. To revise general ledger information only, on Standard Invoice Entry, select G/L Distribution from the Form menu, revise the desired fields, and then click OK.

Voiding a Posted Invoice

Access the Work with Customer Ledger Inquiry form.

To void a posted invoice:

1. Locate the invoice that you want to void, and then click Delete.

   Important! If you select an invoice with multiple pay items, the system voids all pay items.

2. On Confirm Delete, click OK.

3. On Enter Void Information, complete the Void G/L Date and Invoice Revision Code fields, and then click OK.

4. On Void Confirmation, click OK to confirm the void.

5. To verify the void, locate the voided invoice on Work With Customer Ledger Inquiry, and click Select to access Standard Invoice Entry.

6. To review the amounts that the system reversed in the Customer Ledger, select Invoice Revisions from the Row menu on Standard Invoice Entry.

7. To review the reversing entries that the system creates in the F0911 table when you void an invoice, select G/L Distribution from the Form menu on Standard Invoice Entry.

   Void G/L Date	Enter the date to which the system posts voided transactions. Do not enter a G/L date for a previous or future period.
   Invoice Revision Code	Enter the code that identifies the reason that an invoice pay item was voided.

Voiding a Posted Invoice Pay Item

Access the Standard Invoice Entry form.

To void a posted invoice pay item:

1. Select the invoice pay item that you want to void, and click Delete.

2. On the Confirm Delete form, click OK.

3. On the Enter Void Information form, complete the Invoice Revision Code field, and click OK.

4. On the Void Confirmation form, click OK to confirm the void.

5. On the G/L Distribution form, complete the Account Number and Amount fields on a new detail line to create a balancing entry.

   Enter the amount as a credit.

Setting Processing Options for Speed Status Change (P03B114)

Processing options enable you to specify the default processing for programs and reports.

Display

These processing options specify whether to enable the Statement Number field for input and display the Override Payment Term and Business Unit fields.

Updating an Individual Invoice Using Speed Status Change

Access the Speed Status Change - Detail form.

Note. You can also update an invoice using Speed Status Change by selecting the Row menu from Work with Customer Ledger Inquiry.

Updating a Group of Invoices Using Speed Status Change

Access the Global Change Values form.

Note. If you change the value of the business unit, the system does not update the corresponding AID field of the invoice record (F03B11) based on the new value. For companies that use the business unit field for reporting purposes, this enables you to change the value of the field without altering the accounting