Invoices are recorded against the creditors account using the Invoice Entry program. When entering an invoice, the most important details to be specified are the payment conditions and the General Ledger dissections. Another optional feature is the printing of authorisation sheets as part of the invoice approval process.
Credit Notes are recorded against the creditors account using the Credit Note Entry program. As an open item system, Iptor IP1 Accounts Payable module requires credit notes to be allocated against previously entered invoices. In order to achieve the above, the original invoice number is requested at the time of entry of each credit note. The system ensures the invoice exists on the system for the nominated creditor, and it is an approved invoice. The due date of the credit transaction is defaulted to that of the original invoice.
Invoice authorisation required prior to approval
If the invoice authorisation flag on the control file is set to Yes, an invoice authorisation code defaults. This can be overridden at the time of entering the invoice. If the invoice is entered as unapproved, which it would be if Authorisation Lists are being used, the invoice details print on an authorisation list. The authorisation sheet shows the invoice details, user IDs and names of the people responsible for approving it for payment. The order in which the user IDs or initials are printed is used to guide the sequence of the paperwork from one authorised person to the next. Up to ten people may be nominated for each authorisation code, which is defined on the system control file.
If an invoice is entered as Unapproved (status of U) the system will not check the General Ledger dissections against the total invoice value and the amounts will not be allocated to the expense subsidiary ledgers.
Once the required authorisation has been obtained the invoice can be approved via the Maintain Unapproved Invoices program. Invoices can also be approved immediately via Approve function from within Invoice Entry.
Immediate invoice approval no authorisation required
If the invoice authorisation flag is set to N the invoice is automatically approved when entered. Posting to the creditor balances occurs after all entries are validated, and the General Ledger update takes place during the end of the day processing.
AP expense amortization
When a major account that is registered for expense amortization is used in AP, the system will prompt for the number of months to fully amortize the expense and the actual expense account. Each month a pro-rated amount (based on the number of months) will be transferred to the expense provisional account until the expense is fully amortized. The amortization progress can be viewed by Expense Amortization Inquiry – GLI040.
