34 Set Up Invoice Cycles

This chapter contains these topics:

• Section 34.1, "Setting Up Invoice Cycles (ECS),"

• Section 34.2, "Setting Up Invoice Cycle Calculation Rules (ECS),"

• Section 34.3, "Creating Invoice Cycle Preferences (ECS)."

34.1 Setting Up Invoice Cycles (ECS)

You set up invoice cycles to control how the Cycle Billing program calculates scheduled invoice dates. When you set up invoice cycles, you apply different cycle calculation rules and schedules to different customer and item combinations. For example, one customer might prefer an invoice at the end of the month for all shipments made during that month, and another customer might want a weekly invoice for specific items.

You set up an invoice cycle calculation rule to define the type of calculation that the system uses to compute an invoice date. After you set up invoice cycles, you can assign them to customer and item combinations with the Invoice Cycle preference. You can later revise scheduled invoice dates, if necessary.

34.1.1 What You Should Know About

Topic	Description
AAIs for invoice cycles	You must set up the following AAIs when processing invoice cycle information: 4221 - deferred COGS 4231 - deferred revenue 4232 - unbilled accounts receivable See Section 43.1, "Setting Up Automatic Accounting Instructions (ECS)."
User defined codes for invoice cycles	You must set up the following code tables for use with invoice cycle processing: Invoice cycle - 40/CY Day of week - 42/DW Based on date name - 42/DN Calculation rule - 42/CR (hard-coded) See Work with User Defined Codes in the JD Edwards World Technical Foundation Guide.

34.2 Setting Up Invoice Cycle Calculation Rules (ECS)

Navigation

From ECS Sales Order Management (G4910), enter 29

From ECS Sales Order Management Setup (G491041), choose Invoice Cycle Calculation Rule

You set up an invoice cycle calculation rule to define the type of calculation that the system uses to compute an invoice date. For example, you can set up daily, bi-weekly, or based-on-date invoicing. You can then enter test dates to review the calculated invoice dates and ensure that you have set up the calculation correctly.

If the calculation rules are bi-weekly, semi-monthly, or at the end of each month, you must also set up scheduled invoice date ranges.

The following invoice cycle calculation rules are hard-coded and require specific settings:

Type	Requirements
Daily invoicing	Based On Date Name and Day of Week must be blank Days to Increment is optional
Weekly invoicing	Requires Based On Date Name and Day of Week Days to Increment is optional
Bi-weekly invoicing	Requires Based On Date Name Day of Week must be blank Days to Increment is optional
Semi-monthly invoicing	Requires Based On Date Name Day of Week must be blank Days of Increment is optional
End-of-month invoicing	Requires Based On Date Name Day of Week must be blank Days to Increment is optional
Based-on-date invoicing	Requires Based On Date Name Day of Week must be blank Days to Increment is optional

34.2.1 Example: Scheduled Invoice Date Calculation

This example illustrates how the Cycle Billing program calculates the scheduled invoice date and how the calculation affects the generation of invoices. The following values are entered for the invoice cycle calculation rule:

• Based On Date is Order/Transaction Date (9/27/98)

• Days to Increment is 0

• Calculation Rule is End of Month

• Scheduled Invoice Date Ranges are:

  • Start Dates = 9/1/98 and 10/1/98

  • End Dates = 9/30/98 and 10/31/98

  • Invoice Dates = 9/30/98 and 10/31/98

If the delivery confirmation occurs on 9/29/98, the following events occur:

Date	Action
On 9/29/98	The Cycle Billing program processes the order line and calculates the scheduled invoice date to be 9/30/98. Because the scheduled invoice date is greater than the system date (9/29/98), the Cycle Billing program creates deferred journal entries.
On 9/30/98	Because the scheduled invoice date is less than or equal to the system date, the Periodic Invoice program generates the invoice and the Update Customer Sales program reverses the deferred entries and completes the required G/L entries.

To set up invoice cycle calculation rules

On Invoice Cycle Calculation Rule

Figure 34-1 Invoice Cycle Calculation Rule screen

Description of "Figure 34-1 Invoice Cycle Calculation Rule screen"

1. Complete one or more of the following fields:

   • Invoice Cycle

   • Calculation Rule

   • Number of Days Increment

   • Based on Date Name

2. Complete the following field if you are setting up a calculation rule for a weekly invoice schedule:

   • Day of Week

3. If you enter a bi-weekly, semi-monthly, of end-of-month invoice cycle, access Scheduled Invoice Dates.

   Figure 34-2 Scheduled Invoice Dates screen

   
   Description of "Figure 34-2 Scheduled Invoice Dates screen"
   
   

4. On Scheduled Invoice Dates, complete the following fields:

   • Start Date

   • Ending Date

   • Invoice Date

5. Return to the Invoice Cycle Calculation Rule form.

6. Complete the following field:

   • Test Dates

7. Choose the option to calculate the test scheduled invoice date.

Field	Explanation
Invoice Cycle	A code that defines the method of invoicing used by the Cycle Billing program. For example, the invoice cycle could be daily, weekly, monthly, and so on. This is a user defined code field.
Calculation Rule	A code that defines the type of calculation the system uses to compute the Scheduled Invoice Date. This is a user defined code field.
Number of Days Increment	The number of days the system adds to the Based On Date. For example, you might enter several days to allow for time between the order date and the delivery date. The system adds the number in this field to the Based On Date when the Cycle Billing program calculates the Scheduled Invoice Date.
Based On Date Name	The name of the specific date field from either the sales order header or sales order detail that will be used to calculate the Scheduled Invoice Date. For example, if your customer requires invoices at a specific date after delivery, then you would select the Actual Delivery Date. This is a user defined code field.
Day of Week	A one digit code that is used to represent the day of the week. This field must be left blank unless you invoice your customer on the same day each week. That is, this field is only filled in for the Weekly Invoicing Calculation Rule. This is a user defined code field.
Date - Effective	The date that a transaction, text message, contract, obligation, or preference becomes effective.
Date - Expired	The date that a transaction, text message, agreement, obligation, or preference has expired or been completed.
Date - Invoice	The date the invoice was printed. The system updates this date when you run the invoice print program in the Sales Order Processing System.
Date - Invoice Cycle Test 1	A date the system uses to test the invoice cycle calculation during setup.

34.3 Creating Invoice Cycle Preferences (ECS)

Navigation

From ECS Sales Order Management (G4910), enter 27

From ECS Sales Order Advanced and Technical Ops (G491031), choose Preference Profiles

You use the Invoice Cycle preference to define a specific invoice cycle for a customer and item combination. The Cycle Billing program works in conjunction with the Invoice Cycle preference and the invoice cycle calculation rule to calculate scheduled invoice dates for a customer and item combination.

See Also:

• Section 30.1, "Understanding Preferences (ECS)" and Section 31.1, "Setting Up Preferences (ECS)."

To create Invoice Cycle preferences

On Preference Profiles

1. Access the Preference Inquiry for the Invoice Cycle preference.

   Figure 34-3 Invoice Cycle screen

   
   Description of "Figure 34-3 Invoice Cycle screen"
   
   

2. On the Invoice Cycle preference inquiry form, access the Preference Profile Revisions form.

   Figure 34-4 Invoice Cycle (Profile Revisions) screen

   
   Description of "Figure 34-4 Invoice Cycle (Profile Revisions) screen"
   
   

3. On the Invoice Cycle Preference Profile Revisions form, complete one or more of the following fields to define customer and item combinations:

   • Customer Number

   • Customer Group

   • Item Number

   • Item Group

4. Complete the following fields to define specific preference information:

   • Effective From

   • Effective Thru

   • Quantity From

   • Quantity Thru

   • Sequence Number

   • Branch/Plant

   • Invoice Cycle

Field	Explanation
Quantity From	The quantity at which a preference or price adjustment becomes valid. Form-specific information If you do not enter a quantity, the system uses 0. Use the Enable Effective Quantity (Y/N) field on Preference Master to activate or deactivate the display of this field.
Quantity Thru	The quantity at which a preference becomes invalid. Form-specific information If you do not enter a quantity, the system enters a number defined during system setup. Use the Enable Effective Quantity (Y/N) field on Preference Master to activate or deactivate the display of this field. You must also enter the unit of measure for the quantity in the unmarked field next to Quantity Thru. If the preference is in effect for all quantities, leave the Quantity From and Thru fields blank. The system supplies the default minimum and maximum quantities. You must enter a valid unit of measure for the quantities.
Sequence Number	A sequence or sort number that the system uses to process records in a user defined order. Form-specific information Use this field when you have multiple preferences for the same customer/item combination, effective period, and quantity range. The sequence determines the order that the system searches for preference records with otherwise identical fields. The system searches records in ascending numerical order, that is, from lowest to highest.
Invoice Cycle	A code that defines the method of invoicing used by the Cycle Billing program. For example, the invoice cycle could be daily, weekly, monthly, and so on. This is a user defined code field. Form-specific information For Invoice Cycle Preference: The system uses the value you enter in this field to load the Sales Order Detail Tag table (F49211). Do not use the Invoice Cycle preference if you want an invoice to accompany the delivery documents for a sales order.

34.3.1 What You Should Know About

Topic	Description
Document sets	When you set up the Invoice Cycle preference, verify that it does not conflict with the document set you assign to the customer and item combination in the Document Set (ECS) preference. See Section 30.3.4, "Understanding the Document Set (ECS) Preference."
Primary invoice	You must ensure that the document set printed before and during the load confirm process does not include a primary invoice. If it includes a primary invoice, the system will not apply the Invoice Cycle preference.