When parts have been ordered, and receipted into stock, the stock holding and stock valuation will have changed.
Unless the accounting system is informed of this event, the 'Stock control' and 'Accounts' stock valuation will never match. It is therefore necessary to update the Accounts system and the Stock system by the same value.
If the stock management side of the business is kept totally separate from the accounts side, there is more likelihood of creating an imbalance between the two valuations.
The Verification of Received Invoice routine is designed to assist you in keeping the two values in step with one another. It is up to the individual dealership to decide whether the responsibility for verifying the invoices lies with the Accounts or Parts staff.
Tip: It is important to keep up-to-date with this task, as the purchase files will not be cleansed until the lines purchased are fully verified.
Verifying an invoice will allow the system to transfer the value from Goods in Suspense in the Nominal Ledger into Purchase Ledger Control indicating that the invoice has been accepted as being correct.
If the Purchase Ledger Invoice Register facility is not being used to register parts invoices prior to verification then the Accounts staff must take no further action to process the invoice onto the Purchase Ledger, as the successful verification will have transferred the invoice into the appropriate purchase ledger account.
If the Purchase Ledger Invoice Register is being used, and the parts invoice from the supplier has already been registered, then the verification process will link to the registered invoice, and then debit the Goods-in suspense account and credit the Invoice Register suspense account. In either way, any difference between the Goods-in suspense account and the invoice total will either have to be posted as an expense item, such as carriage, packing or in some cases VOR surcharges, or written off to a purchase price variance account (where the difference is acceptable).
Printing the system generated Goods Received Notes (Reports and Enquiries) may prove to be a useful aid when verifying the invoices received, as this gives a quick visual check against values and may highlight instantly any areas of difficulty.
To Verify an invoice:
The PURCHASE CONTROL Menu is displayed.
The Verify receive invoice form is displayed.
The Verify received invoice form is displayed when you select the Verify received invoice option from the PURCHASE CONTROL Menu.
The purpose of this program is to confirm the price at which goods have been brought in to stock in order to maintain both physical and 'Book' stock valuations at the same level. Using this facility, any variation in value will be recorded in the nominal ledger. (As set up in POS parameters.)
Push Buttons:
New Invoice: Select to create a new invoice.
Save: Select at any time to save this record for future action. This will allow an invoice which does not verify to be saved whilst the appropriate action is taken.
Post & Complete Post and complet the invoice verification.
Purchasing: Select to access directly into Purchase control.
Exit: Returns you to the PURCHASE CONTROL Menu.
Help: Displays help on the currently selected application in your company default browser.
Tabs:
Internal reference: This field allows you to continue with an existing invoice, as well as input a new reference number.
Tip: If you wish to continue with an existing invoice and are unaware of the number, a search option is available, activated by clicking Ellipsis button
.
A dialog box is invoked with three options:
Internal-reference
Supplier-reference
Supplier-account
Select the appropriate option and click the OK button.
Search for and select the correct invoice that you wish to continue with.
New Invoice...: Click the New Invoice... button to Start to verify a new invoice.
The fields which are displayed are:
Internal Reference: This is allocated by the system, and is transferred into both the Accounts system and into the reference details of the Purchase Transaction File.
Status: Select the drop down menu facility to view the available options:
New
Lines
Deleted
Completed
Reinstated
Retention period: This is the number of days the invoice verification header record will survive after being received and verified. The value will normally be set to one.
Invoice Details
Supplier account: The Purchase Ledger Account code for the supplier, which must match with the supplier code on the order header.
Tip: A search facility is available against the purchase ledger, click the Ellipsis button
Supplier's reference: This is copied into the reference field on the purchase ledger and should be used to quote the supplier's invoice number if the Purchase Ledger register is not in use, otherwise use the Purchase ledger register reference.
Tip: A search facility is available against the Purchase Ledger transaction file, click the Ellipsis button
Note: If the Purchase Ledger invoice register is used for parts invoices, then no invoice may be verified until it has been registered. If the invoice has been registered by the Accounts department, many of the remaining fields will be automatically completed on the Invoice Details form based on the registered information.
Document date: For systems without the purchase ledger Invoice Register switched on, the document date is either input or selected from the calendar using the ellipsis, and is controlled by three Purchase Ledger system parameters.
Date variance (days) - Forwards: This is the number of days allowed after todays date
Date variance (days) - Backwards: This is the number of days allowed before todays date
Date variance override priority: This is the priority required to be able to override the date if outside the range date.
For systems with the purchase ledger Invoice Register switched on, the date field is populated from the purchase ledger automatically and cannot be changed by the operator.
Tip: A search is available for the date field, click the Ellipsis button
Note: Alternatively, enter T to load Today's date, by use of the up and down arrows on your keyboard you can advance (up arrow) or reverse (down arrow) the date.
Internal document number: If changed from zero, this will overwrite the internal reference in the Accounts system. If the invoice has been registered then the Internal document number will have been automatically allocated at the time that this was done, and under no circumstances should it be changed.
Nominal Department: This is the nominal Department code which will be applied to any expense costs on this invoice, and should not be left at 0.
The default cost centre will be taken from the value held against your login code in the User details record within the Management menu in System utilities. It can be over typed if necessary, where you are verifying an invoice on behalf of another department. Alternatively if the Mandatory Cost Centre field has been checked in the user details record a ? is displayed in this field and a cost centre must be selected.
Tip: A search is available for the nominal cost centre, click the Ellipsis button
Branch: Enter the Branch required.
Tip: A drop down menu facility is available for the branch, click to display and select the required branch.
Authorisation code: Normally used to denote the initials of the person verifying the invoice.
Variances
Variances: These fields are used for any extra charges on the invoice, i.e. carriage charge, VOR surcharge, Rebates.
Extras: These fields are used for any extra charges on the invoice, i.e. carriage charge, VOR surcharge, Rebates.
VAT: These fields are used for defining the VAST code to be used in relation to any identified extras.
The values posted through here will go to the Nominal code(s) nominated in POS parameters, and will use the cost centre quoted at the start of the invoice.
Each expense field should be given a title within POS Parameters to assist you at the time of invoice verification.
Any 'Extras' boxes with no title should not be used.
There are up to five extras slots where the Nominal Ledger postings and the associated description can be set up in the Point-of-Sale parameters, but underneath these there are a further two slots where, as well as the extras amount, you can also enter the Nominal Ledger cost centre and expense code. These two slots can be used for posting one-off type costs not covered by the normal parameter set-up. Additionally each of these fields may have an associated VAT rate assigned to it, click the drop down menu to select from a list of available VAT rates to apply.
The total value of the extras is transferred to the Carriage, etc., field.
Totals
Goods total: This must be the total parts value, excluding VAT, Extras and Exchange Surcharge. If the invoice has been registered in the Purchase Ledger first then this value will automatically have been calculated from the gross registered value, less VAT, less any extras already input. If any part of the invoice is for an exchange unit then this amount should not be removed from this pre-determined value, as the input in the next field will cause that to happen both automatically and retrospectively.
Surcharge total: The value of exchange surcharge shown on the invoice.
Carriage etc: The value of any extras including carriage.
VAT value: The VAT value charged on the invoice.
Grand total: The total invoice value.
Note: The other fields shown on the form will be completed by the system as the verification of the purchase lines takes place. These fields may not be edited by you.
Goods accepted: This is the value of goods accepted through the verification process.
Initially this will be zero until delivery notes or orders have been matched against this invoice.
Surcharge accepted: This is the value of exchange surcharge accepted through the verification process, again initially zero.
Lines accepted: The number of purchase lines attached via the GRN of order numbers which are included in the delivery note or order number page.
Goods remaining: This is the difference between Goods total and the Goods accepted. Initially this should match the goods total, until delivery notes or orders have been matched against this invoice.
Surcharge remaining: This is the difference between the Surcharge Total and the Surcharge Accepted.
Initially this should match the surcharge total, until delivery notes or orders have been matched against this invoice.
Most users set the Supplier's Account to be verified by 'D'elivery Note.
Note: Once the purchase invoice type has been set for a particular supplier, it should not be changed, as outstanding invoices may not be successfully verified.
The system will un-grey the Delivery notes or Purchase Orders tab depending on whether the document numbers to be entered are the Purchase Order Numbers or the Delivery Note Numbers.
The document numbers being validated against this invoice must be entered.
If a number is duplicated, the system warns that the document appears more than once when trying to exit the tab.
It is possible to enter up to 100 document numbers for each invoice to be verified.
Free Text: This field is available for your own memo information. It is contained within the Delivery notes section There is only one set of free text with up to 4 lines of up to 40 characters per line, but it can be accessed from any page of document numbers.
It may be useful to use this field if the invoice cannot be fully verified to note what the area of difficulty has been and why the invoice is not yet completed, before exiting from the invoice.
Supplier: The Purchase Ledger Account code for the supplier, which must match with the supplier code on the order header.
Supplier's reference: This is copied into the reference field on the purchase ledger and should be used to quote the supplier's invoice number if the Purchase Ledger register is not in use, otherwise use the Purchase ledger register reference.
Goods: This is the difference between Goods total and the Goods accepted. Initially this should match the goods total, until delivery notes or orders have been matched against this invoice.
Accept all: When the Documents page (or pages) is completed, click the Accept all button. The system will scan through all the purchase lines relating to the documents entered on the Documents page and accept the values relating to those lines.
Select GRN's: This button is an alternative method to load the delivery note numbers or order numbers into the delivery notes/order numbers grid. Click this button to display all the GRN lines at R status for the selected Supplier on the Invoice header. GRN's can be selected by clicking on the first column. A running total will be shown for the selected GRN's. If you have selected several lines, and wish to start again with a zero value, tick the Select All check box twice, and the value will return to zero and the lines will be de-selected. If there is more than one part number against the same GRN, then the Product column gives the total number of lines against the GRN printed in red. The lines displayed are in the same order as they were created in purchase control.
You will be advised if the transaction has been successfully verified and posted. If the verification failed and there is any difference between the accepted value and the invoice value, the amount will show in the Goods/Surcharge Remaining fields.
If the variance is unacceptable then the lines creating the value difference must be identified and appropriate action taken before the invoice can be verified.
It may be necessary to:
Accept a price variance against the purchase line.
Reject the line from the invoice and go back to the Purchase Lines programs to solve the problem.
Having solved the problem, the line must be re-accepted onto the invoice before continuing with the verification.
When the invoice verifies against the receipt, it is possible to click the Post and Complete button on the header tab to process the transaction through to the Nominal Ledger.
This tab displays order lines for editing. The information displayed includes PO number, GRN number, Part Number, Quantity required, Quantity received, Total goods value at cost, Surcharge value, Order type, Lines accepted and Parts Status. It is contained within the Purchase Control option.
Initially, all invoiced lines accepted on the GRN/Purchase Order will be displayed.
On this tab it is possible to:
Look at the detail of the purchase transactions.
Accept the line on the order.
Reject a line which has been accepted.
Split or partially accept a line.
Vary the price of a line.
Note: The options to reject a line may only be taken after the line has been accepted. Once a price has been changed, it may not be changed again unless the line is rejected and re-accepted.
Each time a line is accepted, the system checks the balance with that on the Header tab. If the value to be accepted is greater than the balance remaining on the Header tab, there is a warning.
It is possible to amend the Details screen, but this should not be done unless the invoice value was entered incorrectly at the outset.
If the difference in value exceeds the system parameter percentage, and is due to a line or lines being accepted at a price other than that on the invoice, the value of variance must be entered against the line(s).
Push Buttons:
The following button options are provided once the Order lines tab has been selected.
Accept: If this line has not been accepted yet, or was accepted previously but subsequently rejected, click the Accept button to accept it as part of the total goods to be verified against the invoice concerned.
Reject: If this line has been accepted previously, click the Reject button to reject it as part of the total goods to be verified against the invoice concerned.
Detail...: Click the Detail... button to show the details of the goods received note, so far as the individual parts line selected is concerned, including the quantity received and the individual and extended received costs. This is a display-only option, and none of these values can be edited at this point.
Split: Click the Split button to allow you to split the total received goods into two quantities, the first one being the quantity on this invoice, and the second one being the quantity that will follow on a subsequent invoice (or invoices).
Price: Click the Price button to enter a differing invoice price to the goods booked-in value and in that way generate a purchase price variance.
Note: It is important to understand that this value will not be posted to the Nominal Ledger parts stock account, but to a purchase price variance account (as defined in the Point-of-Sale parameters). The reason for this is that the goods may no longer be in stock, but may have been supplied in part or in total to a customer already.
The invoiced value can be entered one of two ways, either as a price each, or as a total (Net) price for the quantity involved, in which case the system will re-calculate the cost of each item. These two options are available on both the GOODS value and the SURCHARGE value (where relevant). The default values will be those at which the parts were booked-in and you should correct them to the invoiced value where appropriate.
After the default values have been accepted or amended, you will be prompted via a further menu to Continue without accepting the variance entered or to confirm the new values by clicking the Accept button.
Once all variances have been validated and accounted for, you should be able to move through the Continue option, and the Exit option on the next menu, to the Post-and-complete option.
When all items balance, the invoice may be accepted and posted, and a report will be printed if any price variance has been entered during the verification.
Accepted Lines
The grid shows the following information in order to help you select the lines you require.
PO/GRN: Displays the Purchase order number or GRN ref entered on the Delivery note/Purchase orders tab.
Product reference: Displays the part number for the purchase transaction line
Total: Displays the total value of the transaction line.
The order in which the lines are displayed is as entered on the delivery notes tab. If you wish to group like for like together on the display and sort Alpha/Numerically click once on the PO/GRN heading, click again to display in reverse order.
Individual lines may be selected by clicking on the line.
Selected total: This total will reflect the value of the line(s) selected on the grid, it will update as lines are selected / deselected.
This value should be compared to the value in the header totals in order to gain a match.
Sub Totals
This displays valuation information from the accepted lines grid depending on the selection(s) that have been made as follows:
PO/GRN: The Purchase order or GRN number for each selected line.
Total type: The total type. This will read Sub total or Grand Total depending upon which is being displayed
Total: The total value of each line being displayed, the Grand total is displayed at the end of the list.
Tip: If the list is longer than a couple of lines, click the up and down arrows to cycle through the list.
Possible Matches
It is possible to use the Line Matcher function only if information has been entered into the Delivery notes/Purchase orders tab. Initially information is displayed as a grid under the Possible matches area of the form only. This displays all lines that match the Purchase order or GRN entered on the Delivery notes/Purchase orders tab.
The grid shows the following information based upon possible matches.
PO/GRN: Displays the Purchase order number or GRN ref entered on the Delivery note/Purchase orders tab.
Product reference: Displays the part number for the purchase transaction line
Total: Displays the total value of the transaction line.
Selected total: This total will reflect the value of the line(s) selected on the grid, it will update as lines are selected / deselected.
This value should be compared to the value in the header totals in order to gain a match.
Header totals
Goods: Displays the total value of goods for the document being verified in one of two ways:
- Accepted
The goods value that has been accepted for this document.- Remaining
The goods value that is remaining for this document.Surcharge: Displays the total value of surcharges for the document being verified in one of two ways.
- Accepted
The surcharge value that has been accepted for this document.- Remaining
The surcharge value that is remaining for this document.Once you are happy with the selection(s) you may proceed to transfer these lines to the Accepted lines area of the form.
This may be performed as follows:
Click either the,
- All <--
To select and transfer all the lines on the Possible matches grid to the Accepted lines grid.
- <--
To transfer only the selected lines to the Accepted lines grid.
When you are satisfied that the correct lines have been chosen you may accept and post the invoice.
This tab is for information purposes only .By entering selection criteria on this form it is possible to display the purchase lines that match the criteria entered. Making it possible to find information that will help identify the lines that make up the invoice you are trying to verify.
Supplier code: Enter the supplier code that you wish to display purchase lines for, this field will default to the supplier code entered on the header tab if one has been entered.
Tip: If you are unsure of the supplier code a search is available click the Ellipsis button
Purchase order number: Enter the purchase order for which you wish to display purchase lines from.
Tip: If you are unsure of the purchase order number you require a search by Account is available, click the Ellipsis button
Goods received no: Enter the GRN number required if known.
Product reference: Enter a specific Part number in order to further refine the display.
Tip: A search is available for the part number, click the Ellipsis button
WIP number : Enter the WIP no if known.
Purchase ctrl inv no: Enter the Purchase control invoice number if known.
The purchase lines that match the criteria entered is displayed as a grid. The information displayed will list the Order number, Line number, GRN, Part number, WIP line number, Supplier, Value, PC Number, State and Status for each line.
Each line displayed may be double clicked in order to display greater transaction details pertaining to that purchase line.
Check Box:
Auto refresh: Tick this check box to automatically refresh the display grid if the criteria entered is amended.
Push Buttons:
Point of Sale ParametersRefresh: If the Auto refresh check box is unticked this button may be used to manually refresh the display grid if the criteria entered is amended.