Guidelines for Entering Invoice Lines

Use invoice lines to enter the goods or services to bill the customer on an invoice. You can create invoice lines in three ways: enter an inventory item; enter a memo line; or enter a free text line description.

Refer to these guidelines for entering and updating invoice line information:

• Inventory Items

• Unit Price

• Tax Inclusive Amounts

• Updates to Tax Lines

Inventory Items

If you enter an inventory item, you can enter a warehouse name to indicate the ship-from location for the item. If AutoAccounting is based on standard lines, you can use the inventory item and warehouse name to create accounting flexfield information. For example, you use multiple inventory organizations and set up AutoAccounting to create the revenue account based on standard lines. AutoAccounting uses the item and warehouse that you enter here to create the product segment of your revenue account.

Unit Price

Enter the unit price for the invoice line item. You can enter a positive or a negative number. The default value for the unit price is zero for tax and freight lines.

If you enter a memo line item, the default unit price is the unit list price defined for the memo line. You can accept this price or enter the actual selling price. If the currency of the invoice is different from the ledger currency, the formula for calculating the default unit price is (Standard Price / Currency Conversion Rate).

Tax Inclusive Amounts

The choices in the Amount Includes Tax field indicate whether the amount for this line includes the tax amounts. The default value is Use Tax Rate, in which case the display of inclusive amounts depends on the setting of the Inclusive Tax option on the tax rate code for this line. You can change this setting if the Allow Override option for this tax rate code is enabled. If you change this setting, the line amount is recalculated.

Updates to Tax Lines

You can change the tax rate code on the invoice if the Allow Override option for this tax rate code is enabled. You can also manually create new tax lines, either to correct the tax rate or to reflect other changes to the invoice, such as including a tax exemption.