Invoice Entry (ARE110)

Use this program to enter and correct customer invoices and credit memos in the Accounts Receivable system without using the Sales Orders or Inventory packages.

The Invoice Entry screen consists of two sections. The upper portion of the screen is called the header, where you enter the customer, invoice date, etc. The lower portion is called the line-item entry section, where you enter items, pricing information, etc.

At any time, you have the option of changing or deleting the invoice as well as adding and removing line items. Deleted invoices are not removed from the file. A deleted invoice’s line-item records are removed and the header record status is changed to deleted. The invoice appears on the next Sales Register as a deleted invoice and is removed in the register update. This procedure provides a complete audit trail of all invoice numbers used.

You can print invoices in the Invoice Print program. Invoices may be corrected prior to the Sales Register update through the Invoice Entry program. Invoices will post to the open documents file during the optional update of the Sales Register.

A number of additional features are available in the Invoice Entry program:

A customer search may be performed.

A new customer record may be added to the AR Customer File.

Invoice discounts may be entered.

Applicable taxes may be computed and charged.

Freight charges may be entered.

An invoice memo may be included.

Costing and pricing information may be entered.

GL departments may be entered.

Calculating Commissions

Use Company Control F/M to setup the proper prioritization of the contract price’s commission % and to set the commission flag for use highest/lowest/priority commission.

As a line is being entered/edited in the Sales Order module, the default commission % values for customer, salesperson, item, and price are saved and used in commission calculation processing.

Even though price data is not necessary for the AR Invoice Entry (ARE110) or AR Recurring Invoice Entry (ARE130) programs, the system reads the salesperson’s commission % and recalculates the invoice’s commission % each time the header is modified.

Processing Details

Throughout FACTS, commission percentage processing is as follows when the price selected has a commission % assigned:

There are five commission percent sources: customer, salesperson, item, price and current line commission. The system maintains a user override flag and a price type to designate if the user overrode the line’s commission during order entry.

When calculating commissions, the system first checks the value of the Commission Flag. If the Commission Flag is set to H- always choose the Highest commission in the hierarchy, the system returns the highest commission %, excluding the line’s commission %, after replacing the item’s commission with the price’s commission if necessary. If the Commission flag is set to "L- always choose the Lowest commission in the hierarchy", it returns the lowest, non-blank, commission %, excluding the line’s commission %, after replacing the item’s commission with the price’s commission if necessary.

If the value of the Commission Flag is set to X-calculate (always choose the commission that the hierarchy determines), the system checks the Commission Basis for the first priority to determine which commission percentage to use. As the system navigates the priority string, it returns the first entry that has a commission other than "No Priority" (or blank) as the correct commission %.

For example: If the commission hierarchy is set to SCIP the system would calculate the commission using the percentage assigned to the salesman who sold the merchandise. If no priority is assigned to the salesman, the second priority is checked. The system would then calculate the commission using the percentage assigned to the customer the merchandise was sold to. If no priority is assigned to the customer, the third priority is checked. The system would then calculate the commission using the percentage assigned to the item that was sold.

If the price type is not a contract price, the position of the Price’s Commission % in the hierarchy will be ignored, and if a Price Commission is present, it will replace the Item’s Commission % (regardless of whether the Item’s Commission was "No Priority").

If the user override flag is set for the line-item during order entry processing, the system returns the Line’s Commission as the correct commission %.

Customer Credit Check Processing

This program does all the calculations and gives the appropriate messages for customer credit check. This routine is called from various entry programs and only the results are returned.

The system performs a customer credit check for each customer during Invoice Entry if the number of Credit Check Days entered on the Accounting tab of Customer F/M is less than 999. The Credit hold option for a customer is based on the Credit Check prompt on the Accounting view of Customer Maintenance. The current balance figure use for processing comes from the customer’s existing balance in AR Customer F/M.

The password for the credit check override resides in the AR Static Control F/M.

The credit check routine also checks the Disputed Invoice setting in AR Document Change F/M for each open AR document record. If it finds a disputed invoice record, the credit check processing checks the invoice’s Exclude from Credit Check setting in AR Document Change F/M to determine if the disputed invoice is to be considered in the credit check past due processing. Documents marked as excluded from credit checking are skipped from the total amount past due. All invoices total into the customer’s balance and aging figures. Any disputed invoices that are excluded from the credit check are accumulated into a new total. The check for over credit limit is calculated as the customer’s balance minus disputed invoices not to be included plus document totals. Then, if the customer is past due, the excluded total displays on the optional Customer Aging window that displays in AR Invoice Entry and Sales Orders Entry programs: Quote Entry, Sales Order Entry, Direct Invoice Entry, Counter Sale Entry, Credit Memo Entry, Customer Returns Entry, and Blanket Sales Order Release Register and Post Recurring Documents.

Customer Aging Window

Customer aging information includes the customer name and number, credit limit, aging as of date, balances for aging columns set in AR Aging Control F/M, balance, aging open documents totals, amount excluded from credit check processing and a "Disputed Invoices’ indicator (based on the Disputed Invoice setting in AR Document Change F/M.

Access this program by choosing Accounts Receivable-->Invoice Processing-->Invoice Entry.

Invoice Entry Header Fields:

1. Invoice #

Enter the invoice number (1-999999). Press Enter (CR) to assign the next number on file. Make sure you use the auto assign feature when you enter a new invoice. NEXT displays in the invoice number prompt until you complete the header. The actual invoice number displays after that. Press F2 to perform an invoice search. Enter whether to search by Document or Customer.

2. Customer

Enter the customer number to indicate which customer should be invoiced. Press Enter (CR) to default to the customer used on the last invoice you entered. Press F2 to search of all customer numbers in the system. Refer to the Customer Search topic for details about searching for customers.

Once you enter a customer number, the customer number, price level (if price levels are used), name and address, the ship-to number, name and address, salesperson/territory, terms code, branch and department (if used) appear in the header. At the bottom of the entry screen, the customer’s balance, credit limit, last sale date, phone number, contact and message appear. The system performs the credit check on the customer.
Refer to the Credit Check Processing topic for detailed information.

If the customer is not on file in the system, press
F1 - Add to display the AR Quick Customer F/M program and add the customer. The feature is available if the Use Customer Creation flag is set to Y in the SO Static Control F/M, which you access by Sales Orders-->File Maintenances-->Infrequent File Maintenances-->SO Static Control F/M.

3. Ship-To

The system automatically displays the ship-to number assigned to the selected customer in Customer F/M. You can change the ship-to address by pressing F4. This alternate number must be set up in the Ship-to F/M.

This displays the ship-to number, name, address, and the salesperson/territory. Press Enter (CR) to default to the assigned ship-to number (i.e., normal ship-to in the customer file). SAME assigns the customer name and address. Press
F2 to search of existing ship-to addresses. Press F3 to enter a temporary ship-to name and address for this invoice.

4. Date

Enter the invoice date. Press Enter (CR) to default to the system date. Press F3 to automatically set fields 4-8 to their respective default values.

5. Slsp

Enter the salesperson/territory code for this ship-to customer number. The entry must be a valid in the system. Press Enter (CR) to default to the value already displayed, which should be the salesperson/territory code assigned to the ship-to number. Press F2 to search. Press F3 to automatically set fields 5-8 to their respective default values.

6. Terms

Enter the payment terms code. The entry must be a valid in the system. Press Enter (CR) to default to the value already displayed, which is the terms code assigned to the customer. Press F2 to search. Press F3 to automatically set fields 6-8 to their respective default values.

7. Branch

Enter the branch number. The entry must be a valid in the system. Press Enter (CR) to default to the value already displayed, which is the branch assigned to the customer. Press F2 to search. Press F3 to automatically set fields 7-8 to their respective default values.

8. Dept

Enter the GL department number. The number must be a valid in the system. Press Enter (CR) to default to the GL department assigned to the terminal. Press F2 to search. If you do not use departments, the system skips this field.

9. Reference

Enter the customer reference number if you have one. The reference number can be the customer’s PO number or any alternate reference, up to 15 characters. The information is required if the PO required flag in the customer file is set to Y.

This concludes the header portion of the Invoice Entry program. At this time the invoice document number is automatically assigned and displayed. After the header record is created, all the header fields except #1-2 are accessible through the change header routine. If the invoice number and customer needs to be changed by deleting and re-entering the invoice.

AR Invoice Line-Item Fields

The line-item portion of the program allows you to enter up to 999 line-items and memo lines to complete the invoice.

The system assigns line numbers automatically, beginning with 001 and incrementing by one for each additional line-item up to 999.

10. Item

Enter the item number to be invoiced (up to 20 characters). If an item number does not exit, use this field to indicate the number of items sold, or create a memo line by entering M as the item number. The program assumes a memo line is to be entered and advances to the description field. Press F3 to advance to the prompt-selection field. Press F4 to remove the line and backs up to the previous line number.

11. Description

Enter the item description or memo (up to 30 characters). Memo lines skip the remaining fields in line-item section.

12. Cost

Enter the item’s cost (+/-99999999.99). If the item number is used as the quantity, be sure to include the cost of all the items in this line number. If this field is not available, check the Enter cost flag in the Invoice Processing Control F/M. Make sure the flag is set to Y.

13. Price

Enter the item’s price (+/-9999999.99). If the item number is used as the quantity, be sure to include the price of all items in the particular line number.

14. Charge Tax

Through the Charge tax flag in the invoice processing control record, you establish whether tax is charged for each line-item. If Y, tax will be charged automatically or if N, no tax will be charged and this field is skipped. If L-line by line or O-override, enter Y or N to determine whether tax should be charged on the line-item. Press Enter (CR) to default to Y.

This is the end of the line-entry system Invoice Entry program. The system updates the running total and displays it in the header. The line number is incremented by one, displayed, and the program returns to the item field for the next line-item entry.

Press F3 to end entries of line-items and go to the prompt-selection field to perform a number of functions:

# - Changes a line-item

L - Lists line-items

A - Adds a line-item

D - Deletes the invoice

F2 - Changes header

F3 - Accesses the ending routine

Invoice Entry Footer Fields

The ending routine consists of the final fields prior to completion of the invoice. The ending routine is not accessible if line-items have not been entered. Ending routine information is displayed in the bottom portion of the screen and a new total is displayed at the bottom of the screen. The new total is initially equal to the invoice amount total (merchandise amount) but is redisplayed when an adjustment (invoice discount, freight, tax) is made in the ending routine. At the end of the ending routine, the new total represents the total amount of the invoice.

15. Memo

Depending on information in the Invoice Processing Control F/M, an invoice memo may be entered. The maximum allowable length in the control record is 50 characters and a standard memo may be entered. The memo may include special instructions, goodwill messages, etc., and print on the bottom of the invoice. Press Enter (CR) to default to the displayed value, initially the standard memo. If no memo is needed, press the space bar before pressing Enter (CR).

16. Discount

Through the Discount flag in the invoice processing control record, you can establish invoice discounts based on either a percentage of the merchandise total or a dollar amount subtracted from the merchandise total. If the flag is set to N, no invoice discount is allowed and this field is skipped.

Enter the
discount percent (maximum of 100) of the merchandise total. Press Enter (CR) to initially default to the invoice discount set in the customer file. The dollar amount is calculated and displayed automatically.

Enter the dollar discount (maximum equals merchandise total). Press Enter (CR) to default to 0. The percentage of discount is calculated and displayed automatically.

17. Freight

Through the Charge freight flag in the invoice processing control record, you can establish whether freight is charged. If this flag is set to N, no freight charge is allowed and the field is skipped. If freight is charged, enter the freight amount (+/-9999.99). Press Enter (CR) to default to 0.

18. Tax Code

Through the charge tax flag in the invoice processing control record, you can establish whether tax is charged. If this flag is set to N, no tax is charged and this field is skipped. If tax is charged, enter the tax code for this ship-to customer. The entry must be a valid tax code. Press Enter (CR) to default to the currently displayed value, initially the customer’s ship-to tax code. Through the Tax freight flag in the tax table file, the system determines whether to charge sales tax on freight. Taxes are calculated accordingly. The sum total of all taxes (state, county, city) is calculated and displayed.

After entering the tax code, you can back up by pressing
F4 to the following:

If the
Charge tax flag in the invoice processing control record is set to Y, enter whether the tax rate is H-high, L-low or X-exempt. Press Enter (CR) to initially default to the customer’s ship-to tax code rate. F4 backs up to the tax code field.

If the
Charge tax flag in the invoice processing control record is set to O, enter the tax amount (+/-99999.99). Press Enter (CR) to default to the calculated tax amount. Press Enter (CR) to initially default to the customer’s calculated tax amount. F4 backs up to the tax rate field.

19. Print invoice now?

Through the Use invoice print flag in the invoice processing control record, you can establish whether invoices are to be printed. If the flag is set to N, invoices are not printed and this field is skipped. If set to Y, enter N or Y to indicate whether to print the invoice immediately. If N is entered the invoice is saved for batch printing and may be printed through the Invoice Print program.

This concludes the ending routine of the Invoice Entry program. Upon completion, the screen is cleared of
field information and the program returns to the invoice number field to await further entries.

See Also

How to enter AR invoice header information

How to enter AR invoice line items

How to enter AP invoice footer information