Use the Bill screen to enter vendor invoices/bills.
Step 1: Input basic invoice information
Use the Profile tab on the New Bill screen to enter basic information about the invoice - for example, invoice number, payment terms, and invoice total. You also use the Profile tab to monitor any cost variance that exists on the invoice - for example, if the inventory items on the invoice do not match the total on the invoice.
- Open the New Bill screen (Administration > Accounting > Accounts Payable > Enter Bills).
- Vendor - Select vendor, or click Add New Vendor to add a new vendor.
- Input the beginning of the vendor name and the system will automatically select the vendor.
- Belongs To - Select the store.
- If the bill needs to be divided among several stores, you can do that using the Apply Accounts tab.
- Invoice Number - Enter the vendor invoice number.
- Invoice Date - Enter the invoice date on the invoice. The vendor due date is calculated based on the payment term of the vendor and the vendor invoice date.
- If you add inventory to the invoice, the invoice date affects the floor plan.
- Enter the invoice Subtotal.
- Enter the Tax, GST Tax, and PST Tax if applicable.
- Make sure the Invoice Subtotal does not include the tax amount! - When entering an amount in a tax field, make sure the Invoice Subtotal does not already include the tax amount.
- Tax, GST tax, and PST tax is posted based on the GL account set up using the Accounts Payable tab on the Accounting Defaults screen ( Administration > Accounting > General Setup > Accounting Defaults).
- Will the tax amount appear on the Sales Tax Due Report? - The tax entered in these fields will only appear on the Sales Tax Due Report if the GL accounts associated with the tax fields on the Accounts Payable tab on the Accounting Defaults screen are also associated with at least one tax authority. For example, the amount entered in the GST Tax field will only appear on the Sales Tax Due Report if the GL account selected in the GST Taxes Paid field on the Accounting Defaults screen is also selected in the Tax Liability Account field on the Tax Authority screen on at least one tax authority.
- GST Tax and PST Tax - If you are working in a Canadian or Australian database, generally you add tax using the Apply Accounts tab, not the Profile tab.
- Discounts are generally taken on the Pay Bills screen. If you enter a discount on the Vendor Invoice, then you will NOT want to enter the same discount on the Pay Bills screen.
- Freight - Input the freight amount, or leave this field blank and include the freight cost in the Subtotal field to allocate freight cost to inventory items or multiple stores.
- Allocate freight cost to inventory items - Leave the Freight field blank, and then use the Apply Inventory tab to input and allocate the freight cost to the inventory item. The freight cost will be included in the unit cost calculation.
- Allocate freight cost to different stores or GL accounts - Leave the Freight field blank, and then use the Apply Accounts tab to allocate the freight cost to different stores or GL accounts.
- Freight is posted based on the GL account set up using the Accounts Payable tab on the Accounting Defaults screen ( Administration > Accounting > General Setup > Accounting Defaults).
- Payment Terms - Populates with the payment terms set up on the selected vendor. You can change the terms if needed.
- Payments terms determine if and when a discount is applied. For example, if the payment terms are 1% 10 Net 30, you get a 1% discount if the invoice is paid up to 10 days after the invoice date, and the net amount is due 30 days after the invoice date.
- Payment terms are set up on a vendor using the Options tab on the Vendor screen (Administration > Accounting > Accounts Payable > Search Vendors > Open a Vendor).
- Payment terms are created and maintained using the Payment Terms tab on the Accounting Setup screen (Administration > Accounting > General Setup > Payment Methods).
- Due - Populates based on the Invoice Date and the Payment Terms. Change this field if necessary.
- For example, if the payment terms are 3% 10 Net 45, the Due field will be 45 days after the Invoice Date.
- Multiple Due Dates - Use this feature when you receive an invoice for items that you have received, but you will pay off in installments. For example, use this feature if you have an invoice where you pay a third of the total each month for the next three months. Each due date will display as a separate invoice on the Accounts Payable Aging Report, and Pay Bills screen.
- Discount - Populates based on the Invoice Date and the Payment Terms.
- For example, if the payment terms are 3% 10 Net 45, the Discount field is 10 days after the Invoice Date.
- (optional) Bill of Lading - Enter a Bill of Lading number, if applicable.
- Bill of Lading: The tracking number used by a manufacturer that lists the merchandise they are shipping. The number also includes any additional information that applies to the transportation of these items.
- (optional) Comment - Comments do not print on the invoice.
- (optional) Pop Up Alert - This message will appear each time the invoice is opened.
Step 2: Add inventory items to the invoice
Use the Apply Inventory tab to add item receipts to the invoice. Item receipts are created when inventory is received on a purchase order. When the vendor invoice is recorded, you add the item receipts to the invoice. This ensures the correct purchase cost is recorded on the items and the correct GL accounts are used.
|When inventory items are received...||Inventory Asset Account||Purchases Accrued Not Due Account|
This account holds the cost of the received items until you associate the receipt to a vendor invoice.
|When inventory items are invoiced...||Purchase Accrued Not Due Account|
Any cost changes that you record on the vendor invoice will impact this account.
|Accounts Payable Account|
- Open the Apply Inventory tab. This tab displays all inventory items that have been received but not applied to a vendor invoice.
- Inventory Vendor - Select the inventory vendor and then click Refresh. Only packing slips for the selected vendor appear in the screen.
- If this invoice is for inventory you are flooring, then select the vendor you received inventory from. This allows you to pay the vendor selected on the Profile Tab, but associate the inventory you received from the vendor selected on the Items Tab.
- Select the item receipts associated with the vendor invoice.
- You can pay for multiple shipments with one invoice.
- Click Select By Packing Slip to select the inventory items by packing slip - for example, if the invoice includes all of the items on a specific packing slip.
- The Purchases Accrued Not Due account is increased when the inventory is received on the PO. This account is reduced when the items are paid on the invoice.
- Update Cost - Click the Update Cost button to distribute a cost to the inventory items on the invoice, or update the purchase cost on the items.
- Distribute cost to inventory items - Enter the freight cost in the Amount field, select how the cost should be applied to the items on the invoice, and click Apply. For example, to distribute freight cost to the inventory items on the invoice, enter the freight cost in the Amount field, select an option in the Apply Method field, and click Apply. The freight cost will then be included in the unit cost calculation.
- Update the purchase cost - Update the values in the Purchase Cost column on the Item Receipt Cost Change screen. For example, if the purchase cost of an item does not match the amount on the vendor invoice, update the values in the Purchase Cost column. You can also check the Update Default box if the updated value should be used as the default cost.
- Updating the purchase cost of item not sold - The Adjustments to Inventory Asset account and Purchases Accrued Not Due account will both be adjusted by the change in cost. The unit cost is also updated according to the cost change.
- Updating the purchase cost on item that was sold - The change in cost is posted to the appropriate COGS account and Purchase Accrued Not Due account. The unit cost is not adjusted for the difference.
Step 3: Use the Apply Accounts tab to allocate the invoice
Use the Apply Accounts tab to split up the invoice and apply it to jobs, and/or general ledger accounts and stores.
Apply the invoice to a GL account
Follow the steps below to allocate an invoice to different GL accounts and stores - for example, to allocate a single utility bill to several stores.
- GL Account - Select the GL account to apply the invoice to.
- Account: Formal record that represents money or other unit of measurement, certain resources, claims to such resources, transactions or other events that result in changes to those resources and claims.
- Store - Select a store to expense the invoice to. For those with multiple departments (stores) you may wish to select a department to expense the invoice to so that store will receive credit for that expense.
- Amount - Enter the amount.
- (optional) Comment - Enter a comment.
- Click Save. The allocation appears in the lower portion of the screen. Repeat the steps above to create additional allocations.
*To switch to apply to a job, on the mid-right side you will see a link titled "switch to job", this will allow you to pull up the form to apply this invoice (or part of this invoice) to a Job.
Apply the invoice to a job
Each account allocation can be associated to a specific Job. These allocations will appear on the Vendor Invoice Tab of the Job.
- Job - Select a job.
- Job are created using the Add Job screen (Administration > Job Costing > Add Job).
- Phase - Select a phase.
- Jobs can be broken up into phases using the Phases tab on the Job screen (Administration > Job Costing > Search Jobs > Open a Job > Phases tab).
- Cost Code - Every cost applied to a job is assigned a cost code. The cost code determines which expense account will be used when posting to the general ledger.
- Amount - Enter the amount.
- (optional) Comment - Enter a comment.
*To switch to apply to a GL Account, on the mid-right side you will see a link titled "switch to GL", this will allow you to pull up the form to apply this invoice (or part of this invoice) to a GL Account.
Use the Auto-Populate Accounts Per Previous Invoice button to save time and reduce data entry
If this invoice is similar to the last vendor invoice, click the Auto-populate accounts per previous invoice button. This distributes the invoice subtotal based on the allocation of the last invoice for the selected vendor. If the invoice amount is different, the system will allocate based on the percentage of the total applied to each account on the previous invoice.
Using this feature can save you time and reduce data entry.
Step 4: Complete the invoice
- Open the Profile tab and verify the Variance field is zero.
- Cost variances occur if the invoice amount does not match the total item receipts set up on the Apply Inventory tab, and the GL account allocations set up on the Apply Accounts tab. For example, if the purchase cost is incorrect, or the cost on the vendor invoice is incorrect.
- Apply Cost Variance - Click this button to apply the cost variance using the Inventory Cost Variance account set up on the Inventory tab of the Accounting Defaults screen (Administration > Accounting > General Setup > Accounting Defaults). You can see the generated entry using the Apply Accounts tab.
- The system automatically places the invoice on hold until the invoice has a variance of zero. To view invoices on hold, use the Pending Held Posting Transactions screen (Administration > Accounting > Accounting Desk > Pending Held Posting Transactions).
- Make Recurring - Click Make Recurring to create a recurring invoice.
- Hold Posting - Check this box to keep the invoice from posting to the General Ledger.
- For example, check this box if you are creating a “dummy invoice” until you receive the actual invoice from the vendor.
- You cannot close a month with held invoices. Holding the posting on an invoice will cause your Accounts Payable Aging to be overstated since these invoices have not posted to the General Ledger. These invoices are referenced by (HOLD) on the AP Aging to indicate which invoices might be overstating your aging.
- Next Invoice / Previous Invoice - Use these buttons to quickly move through invoices. This allows you to view past invoices without having to go to the Vendor Profile.
- Check the Same Vendor box to only view invoices for the selected vendor.
- The Next Invoice button saves the current invoice and opens a new one. This allows you to quickly create several invoices.
Security Permissions Required
|Admin-Accounting||*Can Access Accounting Tree Branch|
|AP - Vendor Invoice - Add|
|Invoice||Expense Account||Accounts Payable|
Accounting - if there is inventory on the invoice
|Inventory Invoice||Purchases Accrued not Due||Accounts Payable|
Flooring plan interest start dates and free days dates are based off of the Vendor Invoice date, the inventory received date or the notes payable date. If you are paying interest off of the Notes Payable date, make sure you enter that date into the Vendor Invoice in the area provided.
- Vendor Aging (Administration > Reports > Accounting > Accounts Payable > Vendor Aging) - View all outstanding balances due to vendors as of a specific date. Report shows days past due and amount owed.
- Accounts Payable Aging (Administration > Accounting > Accounts Payable > Accounts Payable Aging) - Once the invoice is created, you displays on the aging report.
- Accounts Payable Invoice Register (Administration > Reports > Accounting > Accounts Payable > Accounts Payable Invoice Register) - View all AP invoices for a selected time period.
- Cash Requirements (Administration > Reports > Accounting > Accounts Payable > Cash Requirements) - Detailed or Summary list of AP Invoices that are coming due and the cash required to pay them.
Unless explicitly stated, this topic documents the most recent version of Evosus Business Enterprise. If you're not using the latest version, go here to download it.
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