Accounting Finance:EDI Inventory Invoices and Purchase Orders

EDI Ownership

• EDI Business Process Owner = John
• ASW Names File Administrator = Nancy
• EDI Technical Owner = Pat

Typical EDI/EFT Transaction Cycle

• Here is a typical EDI/EFT business transaction cycle:

-UWD sends a purchase order (EDI 850)

-Supplier sends an acknowledgement notice (EDI 855)

-Supplier sends an advance shipping notice (EDI 856)

-Supplier sends an electronic invoice (EDI 810)

-UWD sends an Electronic Funds Transfer (EFT)

-UWD sends a remittance advice (EDI 820)

• We may not receive all of the EDI transaction documents from every vendor
• EDI communication with vendors handled by SPS Commerce

Process

• Standard ASW functionality is used
• Determine invoice(s) to be paid
• Match invoice to purchase order

PO Variances

• The system handles automatic creation of quantity, price and exchange rate differences.
• All three different kinds of variances can occur on the same invoice and the system can thus calculate a combination of these three postings.
• Variance postings will only be created if you do manual changes (other than exchange rate differences) for the value of the order line.
• Manual changes however are only performed if the variance is because of incorrect pricing on the PO and not a supplier error.

Supplier Debit Note

• If the variance is due to a supplier error, the supplier must be debited back for the variance.
• Do not change the manual price or quantity.
• Instead post the variance to general ledger #210625 and create a debit note to debit back the supplier for the variance.
• See Matching Purchase Order to Supplier invoice chart for the various scenarios (short shipments/over shipments/wrong items shipped).

Work with Manual Adjustments with G/L Postings

• Selection ASW Fastpath→Cash Management→A/P Cash Management Tasks→A/P Invoicing Tasks→Work with A/P Preliminary Invoices Matching

Work with A/P Invoice Matching

Select Preliminary Invoices

• View list of unmatched preliminary invoices
• Filter by supplier or invoice number
• Mark invoice and double-click

Select Goods

• Write down the PO# and Preliminary document #
• Click Purchase Orders (blue enquiries section)

Purchase Order Enquiry

Order Header

• Enter Purchase Order number
• If status is “60”, matching is permitted
• If status is not “60”, click enter to drill into line details

Order Lines

• If there are lines with status “60”, compare to invoice and check to ensure all items have been received.
• If all items are received, matching is permitted.

Incident Handling Tasks

• Click F12 until you get to the Splash Screen
• Click Incident handling to determine if there are any receiving discrepancies (short shipments/over shipments/wrong items shipped)

• Click Work with incidents

HotLine Maintenance - Incident List

• Enter Customer #
• Enter Customer PO
• Click enter
• Stamp inventory invoice with supplier #/hotline # stamp
• Write supplier #
• Write Hotline incident #

Work with Manual Adjustments with G/L Postings

• Open another ASW session and select Enter Financial Transactions

Financial system transaction entry

• Enter voucher type 30
• Enter batch amount
• Click enter

A/P invoice/credit note entry

• Click F12 to move back to previous panel

System currency

• Click Rotate (left side blue panel)
• Click Add

Entry step one

• Enter Document type EIN
• Enter Document number
• Click enter

Entry step two

• Document type changes to INV
• Change document number to PO#
• Change Invoice matching Y
• Enter Payment mode (if desired)
• Click enter

Default accounts entry

• If you wish to change discount terms or view address and terms of payment description, Click F12 to move back to previous panel.
• Click F8 and change discount due date, discount %, or discount base (if applicable).
• For net discount invoices (discounts calculated before taxes) enter the correct discount base as a positive.
• Note F8 will also give you details on address and payment terms description.
• If no changes are required:

-Enter GST

-Enter Freight (optional)

-Enter Volume Rebate (optional)

-Enter Discount from Supplier (optional)

-Enter Ecotax (optional)

-Click enter to confirm

A/P Invoice Matching

Select goods reception transactions

• Supplier and purchase order number are automatically filled in
• Click enter to confirm

• Received goods for this PO are displayed.
• Mark each line and click Select
• Investigate variance and determine if variance is a supplier error or incorrect pricing on the PO:

-If the pricing or quantity variance is because of incorrect pricing or quantity variance on the PO, mark item, click maintain, change price or quantity of item and click enter

-Send Hotline to Buyer notifying Buyer of price change – problem PRICHG and resolution VPRICE

-If the pricing or quantity variance is because of supplier error, mark items and click select

-Note – discrepancy between PO and inventory invoices will continue to exist if manual pricing or quantity has not been changed or because of rounding

• Click update

G/L Postings Entry for A/P Documents

• If the pricing or quantity variance is because of supplier error or rounding, the G/L posting table will appear.
• Post the discrepancy to general ledger #210625 for debit note discrepancy and #420525 (1120) for rounding.
• The amount posted to g/l# 210625 should match your debit note amount.
• If the supplier has invoiced an item not received or backordered, the buyer should zero out item and create a reference PO for the item or backordered item. A debit note should be created for the invoicing error.
• Click enter

A/P Invoice/Credit Note Entry

• Entry screen is redisplayed
• Continue to next invoice or click F12 when finished

Transaction currency

• List of invoices in the batch is displayed
• Click F3 when completed

Financial System Transaction Entry

• Click F3

• Mark close batch
• Enter N beside Print VAT journal
• Change printer queue (optional)
• Click enter

• A list of vouchers in this batch is displayed
• Click enter