Maintaining an accurate relationship between physical and financial inventory value is imperative for optimal system performance. Use this guide to understand the fields in A/P Invoice Entry screens.
Merchandise vendors have the Inventory G/L account set in the Expense G/L Field in Vendor Master. The Inventory G/L account has special properties as defined in the G/L Control Table.
Go to Accounting > General Ledger > G/L Control Table > Inventory field to view this setting. For multi-branch companies, the specification should use the main branch G/L suffix, as shown below.
Go to File > Vendor > Master > Setup (tab on left) > General (tab on bottom) to view the accounts in the Expense G/L and Liability G/L fields.
Go to Accounting>Accounts Payable>Invoice Entry,
- Enter or search for the vendor.
- Enter a unique Invoice Number. This establishes the A/P record and cannot be edited once the record is saved. If an existing invoice number is entered, the system will return a historical information screen.
- If payment will be sent to an entity other than the vendor providing the merchandise, use the Remit-To field to assign payment to the alternate vendor.
- Enter the Invoice Date. Please note that the date does not determine the accounting period.
- Verify that the Branch is correct. If you operate multiple branches the system will default the invoice to the selected branch.
- Choose the associated PO by clicking the drop down box. Only PO’s associated with the invoice branch will be offered. Verify that the PO is linked by looking at the value in Linked Receipts. Best practice : It is important that you select from the drop down box; the PO # should not be input manually
- Leave the Liability field set to the Accounts Payable G/L account.
- Accept or change the Terms. These are controlled in File > Vendor > Terms.
- Enter the vendor invoice amount (before discount) in the Gross Amount field.
- Enter any associated Freight. The value in the Merchandise Amount field will change accordingly.
- For Canadian users only: Enter the Tax amount. This field is linked to a specific G/L account.
- Use the Other Amount field to enter any additional adjustments. This example shows a small variance between the value of the PO and amount billed. More often than not there will be small rounding differences on large orders. Using this field to record small differences will prevent cost variances between the inventory value and G/L balance.
- The Discount Amount will populate based on the Vendor Terms.
- The Discount Date and Due Date will populate based on the Vendor Terms.
- Progress to the right side of the window. The invoice will default to the current Accounting Period, as controlled by the End of Month Close cycle. For systems set to allow accounting period changes in A/P, the period may be changed to any other period in the current fiscal year.
See Change period in accounts payable.
- The G/L Distribution will populate with the Inventory and Freight In accounts associated with the branch. If any additional amounts were entered, the G/L account must be manually added to the distribution by clicking the Add G/L Account button.
Refer to the example below. The highlighted areas indicate that the Merchandise Amount, Linked Receipts and Inventory G/L Distribution are exactly in agreement. Amounts entered in the Freight and Tax fields are routed to the appropriate G/L accounts.
When there is a difference between the value of a linked purchase order stock receipt and the amount posted to the Inventory G/L account, the system will post the variance to the A/P Receiving Variance G/L account, as specified in the G/L Control Table.
Due to rounding, a $1,000 linked PO does not match the vendor invoice amount of $1,001.
Refer to the sample merchandise invoice below. The value assigned to Inventory matches the Linked Receipt Value with the difference posting to the AP Receiving variance account from the G/L control table.