Use of the automated invoicing function, i.e., two way matching (ERS, Evaluated Receipts), eliminates the need to have invoices. Receipts associated with certain suppliers can be automatically invoiced, instead of waiting for the invoice from the supplier. This function is best used when there is a close relationship between your company and the supplier.
When you and your supplier will use the automated invoicing function, mark the check box Self-billing on your supplier. When this check box is marked, the parameter is set as default on each purchase order line that is registered with this supplier.
The payment method and the payment priority must also be specified on your supplier.
When the purchase order is created the Self-Billing check box on the purchase order line is marked. If you for some reason, do not want to use this function on a particular purchase order line, you can unmark the check box.
It is recommended to use receive cases that do not require inspection, since the automated invoicing function does not work together with scraps and returns.
When registering the purchase order arrival you must enter a receipt reference if the Ownership Transfer Point list in the Company/Distribution/General tab is set to Receipt into Arrival, because the receipt reference is used when the system creates the invoice. The receipt reference must be unique for each arrival, however, an arrival can include several lines.
The supplier invoice is generated when the arrival is entered in the system where the ownership transfer point is set to Receipt into Arrival. The supplier invoice is based on the quantity received, i.e., the received quantity and the purchase price is used to calculate the invoice amount. A separate invoice line is created for each receipt line having the same receipt reference. The invoice is automatically matched and ready to be paid.
The creation of automatic invoices is dependent on the
setting of the Ownership Transfer Point list in the
Company/Distribution/General tab.
If the ownership transfer point is set to Receipt into Arrival, you must enter a
receipt reference when registering the purchase order arrival, because the
receipt reference is used when the system creates the invoice. The receipt
reference must be unique for each arrival. However an arrival can include
several lines.
The supplier invoice is generated when the arrival is entered
in the system. The supplier invoice is based on the quantity received, i.e., the
received quantity and the purchase price is used to calculate the invoice
amount. A separate invoice line is created for each receipt line having the same
receipt reference. The invoice is automatically matched
and made available for payment.
If the ownership transfer point is set to Receipt into Inventory a self-billing
invoice will not be created when the parts are received into an arrival or
quality assurance location. Instead, creation of the invoice will be initiated on
receiving the parts into stock, e.g., picking, floor
stock, shipment. The quantity received into stock will
be considered when creating and matching the self-billed invoice. Since it is possible to
move parts connected to one receipt into stock at different occasions, the same reference number cannot be used
as the invoice number. Instead an automatic sequence would be used as the invoice
number. It is possible to define such an invoice number series for the invoice
series used for self-billing supplier invoices.
If the delivery date has been specified as the supplier invoice tax liability date in the Tax Liability Date Control window for a tax code, the supplier invoice must be entered manually and the self billing invoice creation process will be stopped with an error.
NOTE: In self-billing, if purchasing calculation rounding is used, then there exists a possibility of the invoiced quantity being different to that of the arrived, purchased quantity. This discrepancy results from the fact that one instance uses rounding off to the nearest higher integer value while the other takes into consideration the nearest lower integer value.
All automatically created invoices can be viewed in Self-Billing Invoices Analysis. In this window you can study any error text.