Accounting Finance:Inventory Invoices-Entering Inventory Invoices for Payment

Overview

Pre-checking inventory invoices are required before they are entered for payment.

The system handles automatic creation of quantity, price and exchange rate differences. Two different kinds of variances can occur on the same invoice: price and quantity. Manual price changes are only performed if the variance is because of incorrect pricing on the PO and not a supplier error. If the variance is due to a supplier error, the supplier must be debited back for the variance unless they are able to provide a credit note on the day we need to enter the invoice. Quantity variances occur when products are shorted or come in damaged. Whenever a product needs to be returned regardless if charged or not a debit note is generated. In general we follow the $50 rule: anything over $50 we debit back the supplier, anything less we post as profit/loss unless the buyer directs us otherwise.

Invoice Entry for Payment

Working from the screen above:

1. Type 1, press enter
2. Type 2, press enter
3. Type 3, press enter
4. Type 2, press enter
5. Type 1, press enter
6. Type '30' beside the voucher type, press enter

Using the information on the invoice, enter the following information:

1. Document type 'INV'
2. Document number = PO number
3. Supplier number
4. Supplier invoice number (entered exactly as shown on the invoice)
5. Invoice date (mm/dd/yy)
6. Invoice total
7. Invoice matching should be 'Y'
8. Text = Invoice number or anything relevant regarding the invoice

When done press enter and hit F12 to go back. Due date, Terms of payment and Payment mode is automatically populated. Make sure the terms match the payment terms on the invoice. Press enter.

Enter GST (we do not pay PST on inventory invoices) Enter Freight (optional) Enter Volume Rebate (optional) Enter Discount from Supplier (optional) Enter Ecotax (optional)