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  11. Supplier invoice matching

Supplier invoice matching

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The transactions described are created when you match a supplier invoice in Financials to a purchase order in Distribution.

Invoice matching can be performed either manually or automatically. For a detailed description of automatic matching, see About working with automatic invoice matching. The related topics for this area refer to the related topics in About matching A/P invoices and purchase orders manually in Financials.

Prerequisites
The following prerequisites apply if you want to use the function to match a supplier invoice with a purchase order in Distribution:

  • The Inv manual matching field in the A/P control file must be set to YES for manual matching, or
  • The Inv autom matching field in the A/P control file must be set to YES for automatic matching.
  • The purchase order must belong to a purchase order type with the Add to rec trans field set to YES in the Purchase order type table.
  • The purchase order in Distribution must have reached either status 42 or 60.

The following transaction types in the Transaction type table in Distribution are associated with the matching routine:

Transaction type Description Debit/Credit Additional info
809 Price difference within tolerance limit on invoice line level D/C Transaction type used in the A/P invoice automatic matching routine.
810 Purchase accounts D/C Contra account to 814. In addition, if an order line has been pre-accounted in Distribution, the account(s) entered on the order line will override the account(s) defined for this transaction type.
811 Exchange rate difference invoices D/C If there are any differences between the exchange rate on the supplier invoice and the purchase order.
812 Quantity difference invoices D/C If there are any quantity differences between the supplier invoice and the purchase order.
813 Price difference invoices D/C If there are any price differences between the supplier invoice and the purchase order, used in the manual matching routine.
814 Invoiced purchases D/C Contra account to 810.
930 Reception from supplier D Used to reverse the account credited by this transaction type when the goods were received in Distribution.
931 Return to supplier C Used to reverse the account debited by this transaction type when the goods were received in Distribution.
932 Landed cost D Used to reverse the account credited by this transaction type when the goods were received in Distribution.

Description

When you enter a final A/P invoice in Financials, you can match the invoice with a purchase order in Distribution. The accounting of the transaction types, described above, is done solely within Financials, but the system retrieves the account numbers according to the accounting rules you have set up in Distribution, except for the accounts of creditor postings (supplier control account) and VAT.

Note: No accounting transactions will update the Bookkeeping transaction file (SROBTR), since the accounting is done in Financials. This means that you do not have to transfer any transactions from Distribution to Financials.

All these transaction types are connected to trade accounts with the exception of 930, 931 and 932 (these are balance accounts of the same type as supplier control accounts). Transaction type 930 is used when matching an invoice for goods, 931 is used when matching a credit note and 932 when matching an invoice for landed costs. The posting on the accounts for 930, 931 and 932 are reversed from what was accounted for these transaction types in Distribution when the purchase order was received.

The actual amount of what is invoiced, (i.e. invoiced net price * invoiced quantity), is accounted on transaction type 810 (purchase account) and 814 (invoiced purchases). These transaction types create a double posting of the purchase value. These postings can be used for statistical VAT purposes. If they are not needed, the 810 and 814 can be linked to the same account in Financials, and if this account is summarised, then a zero posting will be made instead of one credit and one debit with the same amount.

The amount accounted on transaction type 810 could be a debit if it concerns a Reception from supplier (930) or a Landed cost (932), or a credit if it concerns a Return from supplier (931). The amount accounted on transaction type 814 could be a credit if it concerns a Reception from supplier (930) or a Landed cost, or a debit if it concerns a Return to supplier (931).

Note: If the quantity of the item on the invoice is greater than what was on the purchase order, this difference must be booked manually. If however, the quantity of the item on the invoice is less than what was on the purchase order, (i.e. you have received a quantity for free), this is accounted on transaction type 812 (Quantity difference invoiced) as a credit.

Pre-accounted order lines

If pre-accounting information is defined on the purchase order line in Distribution, the account(s) defined for transaction type 810 will be exchanged with the actual account(s) entered on the order line. This means that if the pre-accounting function is used in Distribution, transaction types 810 and 814 cannot be linked to the same accounts in Financials to create a zero balance. For more information about how to pre-account order lines, see About pre-accounting purchase orders.

Price difference

If there is a price difference between what was expected to pay in Distribution (i.e. 930/931) and what was invoiced in Financials (810/814), the difference is accounted on transaction type 813 (Price difference invoices) for manually matched invoices and transaction type 809 (Price difference within tolerance limit on invoice line level) for automatically matched invoices. The amount of the difference could be debited or credited depending on whether the price difference is an increase or decrease respectively.

Exchange rate difference

Transaction type 811 (Exchange rate difference invoices) accounts any exchange rate differences. This is accounted only when the currency on the purchase order in Distribution is the same as the currency on the invoice from the supplier in Financials. The amount could be debited/credited depending on whether or not the amount has increased/decreased respectively.

Note: If the invoiced quantity = 0 when you match the invoice in Financials, (i.e. all received goods are free), the only accounting that is created is for transaction types 930/931 (Reception from supplier/Return to supplier) and 812 (Quantity difference invoices).

View created postings

All postings automatically created during the matching will be displayed on the G/L entry panel for invoice postings when you have updated the matching, if the G/L postings panel field in the Document type table for the used document type is set to YES. These postings cannot be maintained on this panel. If there are errors, you will have to cancel the entire invoice and start all over again. The postings that are made to the G/L are only amount postings, no quantities are ever posted.

If the G/L postings panel field in the Document type table is set to NO for the document type used, the postings will not be displayed on any panel in the A/P invoice/credit note routine at all. They will only be displayed on the different printouts produced by the routine.

VAT handling

VAT calculations are postings that are handled differently in the matching routine depending on how the VAT is entered in the system, which is controlled by the VAT entry inv level and VAT entry G/L level fields in the G/L control file.

If VAT is entered on invoice level, VAT will be created before matching, and only net amounts will be posted in the matching routine. The following prerequisites must have been set up in the system:

  • A formula for the VAT calculation (VAT amount (BBB) field) must have been defined for the VAT handling code on the order line. This is done in the VAT handling code table. In addition, the VAT amount (BBB) field on the GDMD1314 panel in the VAT handling code table must be defined with the code for OPTIONAL.
  • A pseudo account for both debit and credit amounts must be defined for the VAT amount for the VAT handling code on the order line. You define the pseudo accounts in the Pseudo account file in Financials. Those pseudo accounts are then connected to the VAT handling code in the VAT handling code table.

If VAT is entered on G/L level, the matching routine will automatically generate VAT postings from the VAT handling code of the item. The following prerequisites must have been set up in the system:

  • The account retrieved by transaction type 810 must have a VAT catalogue defined, which includes the VAT handling code on the purchase order line. You define the VAT catalogue in the VAT catalogue table and this catalogue is then connected to the account in the Account file.
  • A formula for the VAT calculation (VAT amount (BBB) field) must have been defined for the VAT handling code on the order line. This is done in the VAT handling code table. In addition, the VAT amount (BBB) field on the GDMD1314 panel in the VAT handling code table must be defined with the code for OPTIONAL.
  • A pseudo account for both debit and credit amounts must be defined for the VAT amount for the VAT handling code on the order line. You define the pseudo accounts in the Pseudo account file in Financials. Those pseudo accounts are then connected to the VAT handling code in the VAT handling code table.

If the stipulations described above are fulfilled, the account for VAT is retrieved from the Pseudo accounts defined for the VAT handling code on the purchase order line.

The VAT handling code on the purchase order line is retrieved according to the following order:

  1. From the VAT handl code purch field (if the item is VAT based) or the VAT free purch code field (if the item is not VAT based) on the Country/Country VAT information panel in the Item file. If no record is found, it is retrieved from
  2. The Default prod purch field (if the item is VAT based) or the Default VAT free field (if the item is not VAT based) in the Country/Country VAT table. If no record is found, it is retrieved from
  3. The Default purchase field (if the item is VAT based) or the Default VAT free field (if the item is not VAT based) in DIS control file.

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