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Baan Finance

Accounts Payable

Module Procedure UP035A US

Accounts Payable

Document�information

Document

Document code : UP035A USDocument group : User DocumentationDocument title : Accounts PayableApplication/Package : Baan FinanceEdition : ADate : August 1998

© Copyright 1998 Baan Development B.V. All rights reservedThe information in this document is subject to change without notice. No part of this documentmay be reproduced, stored or transmitted in any form or by any means, electronic or mechanical,for any purpose, without the express written permission of Baan Development B.V.Baan Development B.V. assumes no liability for any damages incurred, directly or indirectly, fromany errors, omissions or discrepancies between the software and the information contained in thisdocument.

Accounts Payablei

Table of contents

1. The Accounts Payable (ACP) module in BaanERP 1-11.1 The ACP concept as applied in BaanERP 1-11.2 ACP’s functional procedures 1-21.3 The modules related to ACP 1-31.4 The functionality of ACP’s business objects 1-4

2. The copying received purchases-invoices procedure 2-1

3. The manual purchase-invoice procedure 3-13.1 To enter manual purchase invoices 3-13.2 To create credit notes 3-53.3 To correct purchase invoices 3-53.4 The sessions that are related to the main procedure 3-6

4. The purchase-invoice matching procedure 4-14.1 Purchase-invoice matching 4-14.2 The sessions that are related to the main procedure 4-54.3 The self-billing procedure 4-6

5. The subcontracting procedure 5-15.1 Processing subcontracting invoices 5-1

Accounts Payableii

Accounts Payable1

About this document

Read this document to get an overview of the Accounts Payable module’sfunctionality and to learn more about the functional procedures that are relatedto ACP.

You need no detailed knowledge of the BaanERP software to read thisdocument. However, you are more likely to understand the contents if you arefamiliar with:

n The overall structure of packages, modules, and sessions within theBaanERP software

n The general business procedures used in everyday business practicen The basic concepts of enterprise resource planning

For detailed descriptions of the module’s sessions, refer to BaanERP’scomprehensive online Help.

To use this document

Read Chapter 1, The Accounts Payable (ACP) module in BaanERP, if you wantto know more about:

n The module’s functionalityn The relationship of the module with other modulesn The functionality of the module’s business objects

Read Chapter 2, The copying received purchase-invoices procedure, if you wantto know more about:

n The sessions in the proceduren The results of the procedure

Read Chapter 3, The manual purchase-invoice procedure, if you want to knowmore about:

n The sessions in the proceduren The results of the proceduren The sessions that are related to the proceduren The related procedures for creating credit notes and invoice corrections

Read Chapter 4, The purchase-invoice matching procedure, if you want to knowmore about:

n The sessions in the proceduren The results of the proceduren The sessions that are related to the proceduren The related procedure for self-billing

Accounts Payable2

Read Chapter 5, The subcontracting procedure, if you want to know moreabout:

n The sessions in the proceduren The results of the procedure

Acronyms used in this document

ACP Accounts Payable

ACR Accounts Receivable

CI Central Invoicing

COM General Data

EMM Enterprise Modeling Management

FAS Fixed Assets System

GLD General Ledger

IAB Industrial Assurance Board

IBD Item Base Data

MCS Tables

PIN Project Invoicing

PUR Purchase Control

SLI Sales Invoicing

SLS Sales Control

TC Baan Common

TD Baan Order Management

TF Baan Finance

TI Baan Manufacturing

TP Baan Project

TS Baan Service

WH Baan Warehousing

Legend

Mandatorysession

Indicates a mandatory session

Optionalsession

Indicates an optional session

Mandatorybusiness object

Indicates a mandatory business object

Optionalbusiness object

Indicates an optional business object

CFIndicates a package

PCSIndicates a module

PCSIndicates a module that is described in the module procedure

Accounts Payable1-1

n The ACP concept as applied in BaanERPn ACP’s functional proceduresn The modules related to ACPn The functionality of ACP business objects

1.1 The ACP concept as applied in BaanERP

The Accounts Payable (ACP) module provides the functionality to enter,monitor, maintain, and process the company’s purchase invoices, which are theinvoices sent by business partners for goods they sold you. In ACP you canautomatically or manually match purchase invoices with purchase orders.

Most purchase invoices are entered manually for goods you bought as well asfor general expenses or for fixed assets you purchased. Purchase invoices areonly generated by BaanERP if you use the self-billing procedure.

In ACP, you can monitor all these purchase invoices and their transactions, aswell as business-partner totals. The functionality for monitoring is centered inthe Open Entries business object, which has extensive display and reportingcapabilities. Also, you can modify purchase-invoice details and handle currencydifferences and payment differences.

Additional functionality is available in the Subcontracting business process tohandle subcontracting invoices and data related to subcontracting invoices, suchas remittance agreements.

The ACP module uses several master-data items from the General Ledger(GLD) module, such as ledger accounts, transaction types, and periods.

In the ACP master data, a ledger-account schedule is defined by financialbusiness partner group. A ledger account and dimensions are defined for allkinds of transaction that are generated in ACP. For example, the kinds oftransactions are:

n Control accountn Advance paymentsn Unrealized currency profitn Payment differencesn Discount

For all these transactions in the ACP master data, different ledger accounts canbe indicated for each business partner group. All invoice-from business partnersare part of a financial business partner group.

1. The Accounts Payable (ACP) module in BaanERP

Link with general ledger

The Accounts Payable (ACP) module in BaanERP

Accounts Payable1-2

Figure 1 shows how the ACP module is positioned in BaanERP.

Logistics

EMM

Finance

ACPFAS

SLI

Central Invoicing

MCS

IBD

GLD

Basic data

COM

TI

TDWH

Service

Project

TP

TS

CMG ACR

GLD

Figure 1, The ACP module in BaanERP

The ACP module is an execution module, where all purchase invoices arecreated, stored, processed, and finalized. The purchase transactions to theGeneral Ledger (GLD) module are posted from the ACP module.

1.2 ACP’s functional procedures

n To copy received purchase invoicesn To enter a manual-purchase invoice, which includes

− Credit notes− Purchase corrections

n Purchase invoice matching, which includes self-billingn Subcontracting invoicing

In the Transaction Processing business procedure, you can enter a manualpurchase invoice. This invoice can be related to orders or related to generalcosts (a cost invoice). The procedure to enter a manual purchase invoice mustalso be used to enter credit notes and to correct invoice amounts.


Accounts Payable1-3

You can enter an invoice for a fixed asset with the manual purchase-invoicingprocedure. A link between ACP and the Fixed Asset System (FAS) moduleexists for this procedure. See the fixed asset investment procedure in the FixedAssets System module procedure, (document number UP039AUS) for details.

The most important ACP procedure is the purchase invoice matching procedure.In this procedure, purchase orders from BaanERP Distribution are matched withpurchase invoices in the ACP module. Matching invoices to orders can be doneeither manually or automatically.

The subcontracting invoicing procedure lets you manage the extra data relatedto income tax and social security premiums that are required when you processinvoices from labor subcontractors. This procedure ensures that each part of asubcontracting invoice amounts is paid to the right party.

1.3 The modules related to ACP

Figure 2 shows the modules that are related to ACP

ACP CMG

FAS

GLD

WH

Figure 2, The modules related to ACP

Three BaanERP Finance modules exist that have a link with the ACP module:

n The General Ledger (GLD) module, in which ledger accounts andtransaction types are defined for posting all accounts-payable transactions.ACP is a subledger of the GLD module. Consequently, all ACP-relatedpostings are made in the GLD module.

n The Cash Management (CMG) module, in which the payments for the openpurchase invoices are performed. BaanERP keeps track of all paymentsmade for all open purchase-invoice entries in ACP.

n The Fixed Assets (FAS) module, which exists to handle the entry of a fixedasset in the FAS module (investment). The entry of a fixed-asset investmentis started in the ACP module by registering an investment transaction.

A link with Baan Warehousing (WH) exists to create ACP purchase invoicesthrough the self-billing procedure.


Accounts Payable1-4

1.4 The functionality of ACP’s business objects

ACP contains the following business objects:

n Master Datan Transaction Processingn Open Entriesn Subcontracting

Figure 3 shows the main flow between the business objects.

Master Data

Transaction Processing

Open Entries

Subcontracting

GLD

FAS

CMG

Figure 3, The main flow between the business objects in the ACP module

Master Data

The ACP master data contains:

n The ACP parametersn A ledger account schedule, which forms a link between ACP and GLDn Blocking codes, which enable you to block invoices for paymentn Aging analysis data, which enables you to analyze the periods of time open

amounts exist for specific business partnersn Tolerated price-difference limits for approving invoices

In the ACP Parameters (tfacp0100s000) session you can set several defaults thatconcern issues such as the following:

n The tax calculation on the invoicesn Whether or not you use automatic matchingn The transaction types used for approval, currency differences, and other

ACP transactions


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Two links exist between the ACP and GLD modules. One link with GLD existsin the master data and is defined by financial business-partner group. You mustdefine the financial business partner groups for accounts payable in the ACPmaster data. All invoice-from business partners and pay-by business partnersmust be linked to a financial business partner group (in the Business Partners(tccom4500m000) session).

A second link between ACP and GLD exists in the transaction processingbusiness object. The transactions in the ACP module are posted to ledgeraccounts during the transaction processing, which takes place in this businessobject.

For each financial business partner group, you can define a schedule thatindicates the ledger accounts and dimensions to which the various ACPtransactions must be posted. For example, you can define ledger accounts for:

n Control account postingsn Payment differencesn Invoice receiptsn Anticipated paymentsn Price differencesn Invoice accrual

If a purchase invoice is related to orders, it is first posted to the Invoice Receiptsaccount and the Control Account for the business partner. This transactionhappens when the invoice is registered (entered). If the invoice is approved, it isposted to the Invoice Accrual account.

Transaction Processing

The ACP transaction processing functionality enables you to create transactionsrelated to purchases:

n Purchase invoicesn Purchase credit notesn Purchase corrections

Received invoices can be entered, authorized, and confirmed before anyfinancial transactions are processed.

The entire procedure for matching purchase orders with the open purchaseinvoices and approving purchase invoices is also centered in TransactionProcessing.

Most of ACP’s functional procedures are centered in Transaction Processingand are described in detail in the following chapters.


Accounts Payable1-6

Open Entries

In the Open Entries business object you can maintain the unpaid purchaseinvoices and the data related to them, such as:

n Terms of paymentn Payment schedulesn One-time business partner addressesn Purchase invoice details, which include the due date, blocking code, and so

on

In addition, you can write off currency differences and payment differences forthe open entries.

The Open Entries business object provides extensive functionality to:

n Display the open invoicesn Display the total open amounts and aging analyses for business partnersn Print reports, such as listings of purchase invoices, a business partner’s

financial data, or a control account checklist

Subcontracting

Subcontracting is a process or a service that you purchase from a supplier. Thesubcontracting business object of ACP focuses on the purchase of labor. Thislabor is usually in the context of the construction industry, where labor issupplied by individuals and the invoice amount includes elements for tax andsocial security charges.

Therefore, purchase invoices are generated when you hire certain services fromanother party: for example, when a part of a project or an operation of aproduction order is carried out.

Subcontracting invoices are present as open entries in ACP. In theSubcontracting business procedure, you can maintain specific subcontractingdata for these invoices.

The Subcontracting business procedure can only be used if you selected theSubcontracting check box in the ACP Parameters (tfacp0100s000) session.

Accounts Payable2-1

This chapter describes the main (optional) procedure for copying receivedpurchase invoices. You can use this procedure to record invoices and confirmthem before they are registered. These functions are useful if the person whoenters the invoice is not authorized to approve it.

A registered invoice has an open entry in ACP, and its initial financialtransactions have been posted to the General Ledger (GLD) module.

The received invoices are first checked by an employee. A list of the employeeswho can authorize received invoices is maintained in the Blocking References(tfacp0130m000) session in the ACP master data. The blocking referencesauthorize the received invoices before they are copied and thereby registered.

Through the copy received purchases-invoices procedure, the invoices arereceived, authorized, and copied. After copying, the invoices are registered,which means open entries and financial transactions are created.

Figure 4 shows the steps in the copying received purchase-invoices procedure,and the steps involved in this procedure are explained after the figure.

Received Purchase Invoices(tfacp1500m000)

Authorization Data(tfacp1101m000)

Authorize Purchase Invoices(tfacp1104m000)

Transactions(tfgld1101m000)

Delete Copied/Canceled Purchase Invoices(tfacp1200m000)

Purchase Invoices(tfacp1110s000)

Copy ReceivedPurchase Invoices(tfacp1210m000)

1

2

3

4

5

6

7

Figure 4, The procedure for invoice copying

2. The copying received purchases-invoices procedure

Results of the procedure

The copying received purchases-invoices procedure

Accounts Payable2-2

Step 1 Received Purchase Invoices (tfacp1500m000)

Use this session to enter the invoice that was received from a business partner inthis session. At this point, no financial transactions are generated.

Click the New record button, which creates a new record. The ReceivedPurchase Invoices (tfacp1100s000) details session is also started. The invoice isgiven a document number to identify it. You can enter the business partner,invoice amount, and data to calculate the invoice amount in home currency.

When you save your invoice and exit the details session, the invoice is given theinvoice status Received.

To remove an invoice from the ACP module without copying it, set the invoicestatus to Canceled. You can then delete the invoice with the DeleteCopied/Canceled Purchase Invoices (tfacp1200m000) session.

Step 2 Authorization Data (tfacp1101m000)

Use this session if you want to indicate that an invoice must be authorizedbefore it can be processed further. If a blocking code is linked to the invoice, ora default blocking code is defined in the ACP Parameters (tfacp0100s000)session, the invoice must be authorized.

Select the invoice in the Received Purchase Invoices (tfacp1500m000) sessionand choose Authorization Data on the Specific menu. The Authorization Data(tfacp1101m000) session is started.

Indicate the person(s) who must authorize the invoice before it is registered.The persons who can authorize invoices are called blocking references and aredefined in the ACP master data. You can list one or more blocking referencesand enter the date before which the invoice must be authorized by each blockingreference.

Step 3 Authorize Purchase Invoices (tfacp1104m000)

Use this session to allow the blocking reference(s) to authorize the furtherprocessing of the invoice. The invoices are displayed by blocking reference.Invoices for which no blocking reference is defined are not displayed.

Select your invoice record. Click the Confirmed check box and click Save. Theinvoice is now authorized.

Step 4 Transactions (tfgld1101m000)

You must now enter a transaction to which you can copy the received purchaseinvoice.

Use this session to indicate what type of transaction you want to create. Also,you must select the appropriate batch in which the transaction must be created.Transactions of the same batch are always finalized and posted to the GLDmodule together within a certain financial period.

Note


Accounts Payable2-3

Create a new record and select a transaction type of the Purchase Invoicestransaction category. Save the record and click Enter Transactions. ThePurchase Invoices session is started.

Step 5 Purchase Invoices (tfacp1110s000)

Use this session to copy the received and approved purchase invoice that youwill use to create a registered invoice. Choose Copy Received PurchaseInvoice from the Specific menu.

Step 6 Copy Received Purchase Invoices (tfacp1210m000)

Use this session to display a list of all received purchase invoices. Select yourinvoice and click OK. The invoice details are copied to a new, registeredinvoice with a new document number in the Purchase Invoices (tfacp1110s000)session.

As you tab through the fields, BaanERP enters the values copied from thereceived invoice to the registered invoice.

The Invoice Type field of the Purchase Invoices (tfacp1110s000) sessionindicates if your purchase invoice is related to general costs or to one or morepurchase orders. If you select Cost Invoice as your invoice type, your invoicewill not go through the matching procedure. If you select Invoice Related toOrders, your invoice must be matched with purchase orders.

See Chapters 3 and 4 for information on entering financial transactions for costinvoices and invoices related to orders.

Step 7 Delete Copied/Canceled Purchase Invoices (tfacp1200m000)

When the invoice is copied, you can delete the copied invoice from the ACPmodule. Start the Delete Copied/Canceled Purchase Invoices (tfacp1200m000)session on the Specific menu in the Received Purchase Invoices(tfacp1500m000) session.

After you have registered (copied) the received invoice, its status is set toCopied. You can delete this invoice (or a range of copied/canceled invoices) inthis session.


Accounts Payable2-4

Accounts Payable3-1

This chapter describes:

n The main manual purchase invoice procedure for cost invoices, whichinclude− Credit notes− Purchase corrections

n Sessions related to the main procedure

3.1 To enter manual purchase invoices

Purchase invoices can be entered into BaanERP in three different ways:

n Manually, in Accounts Payable in the Transaction Processing businessobject

n Electronically, via Electronic Commercen Automatically, when self-billing receipts are entered in Warehouse

Management

The manual purchase invoice procedure in ACP allows you to create:

n A purchase invoice for general costs or for a fixed assetn A purchase invoice that is related to one or more purchase ordersn A purchase credit noten A correction on a purchase invoice

The purchase invoices entered manually in ACP are often related to purchaseorders created in logistic packages in BaanERP, such as Order Management orProject. The posting data for these invoices is derived from the details alreadycontained on the order except for additional amounts charged by the supplierthat were not included on the original order, such as insurance or postal charges.

However, you can also enter a purchase invoice in ACP that does not relate to apurchase order at all. These invoices are referred to as Cost Invoices, which arepurchase invoices that are related to general costs but not to purchase orders inBaanERP.

The manual purchase invoice procedure that is described below is for enteringcost invoices. The cost invoice will not be matched with orders. The procedurefor manually entering invoices related to an order and matching them topurchase orders is described in Chapter 4.

Entering a manual purchase invoice results in the creation of an open entry inACP. The invoice amount is posted to the business partner’s control account(defined in the Ledger Accounts by Financial Business Partner Group(tfacp0111m000) session).

3. The manual purchase-invoice procedure

The procedure’s result s

The manual purchase-invoice procedure

Accounts Payable3-2

Figure 5 shows the steps in the manual purchase-invoice procedure, and thesteps involved in this procedure are explained after the figure.

Transactions (tfgld1101m000)

Purchase Invoice Transactions

(tfacp1120s000)

TransactionError Log

(tfgld1106m000)

1

5

6

Finalization Run Numbers

(tfgld1110m000)7

Select Batches for Finalization(tfgld1111s000)

8

Authorization Data(tfacp1101m000)

Authorize Purchase Invoices(tfacp1104m000)

3

4

Purchase Invoices (tfacp1110s000)2

Figure 5, The manual purchase invoice procedure


Use this session to indicate what type of transaction you want to create. Also,you must select the appropriate batch in which the transaction must be created.Transactions of the same batch are always finalized and posted together to theGLD module according to certain financial period.

Create a new record and select a transaction type of the Purchase Invoicestransaction category. Save the record and click Enter Transactions. ThePurchase Invoices (tfacp1110s000) session is started.


Accounts Payable3-3


Use this session to create the purchase invoice header. First, BaanERP assigns adocument number to the invoice, based on the transaction type. This number isnow the invoice’s identification, together with the transaction type. Whether ornot you can manually change this number depends on the settings for thetransaction type in the GLD master data.

A lot of data is defined in the purchase invoice header, such as:

n The invoice-from business partnern The document (creation) date and due daten The total invoice amountn Currency datan The level of tax calculation and other tax datan Terms of payment

In the Invoice Type field, you must indicate if your purchase invoice is relatedto general costs or to one or more purchase orders. Select Cost Invoice as yourinvoice type. Your invoice will not go through the matching procedure. Instead,you must enter purchase invoice transaction lines in the next step.

Step 3 Authorization Data (tfacp1101m000)

Use this session to indicate that the invoice must be authorized before it can beprocessed further. Choose Authorization Data on the Specific menu. TheAuthorization Data (tfacp1101m000) session is started.

Indicate the person(s) who must authorize the invoice before it is registered.The persons who can authorize invoices are called blocking references and aredefined in the ACP master data. You can list one or more blocking referencesand enter the date before which the invoice must be authorized by each blockingreference.

Step 4 Authorize Purchase Invoices (tfacp1104m000)

In this session, use the blocking reference(s) to authorize the further processingof the invoice. The invoices are displayed by blocking reference. Invoices forwhich no blocking reference is defined are not displayed.

Select your invoice record. Click the Confirmed check box and click Save. Theinvoice is now authorized.

Step 5 Purchase Invoice Transactions (tfacp1120s000): General Costs

Use this session to create a purchase invoice that is related to general costs,which is referred to as a cost invoice. The purchase invoice has no link withpurchase orders and is posted to the General Ledger (GLD) module withoutbeing matched to orders.

You can enter transaction lines for the invoice costs in the Purchase InvoiceTransactions (tfacp1120s000) session. For one purchase invoice header, you canenter one or more transactions. Each cost transaction receives a line number thatidentifies it within the invoice's document number.


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A purchase invoice transaction is posted to the General Ledger (GLD) module.You can either create one transaction for the total invoice amount or severaltransactions in which the invoice amount is split up. You can define a ledgeraccount and dimensions for each transaction.

After you enter the ledger account, transaction amount, and other data, save thetransaction and exit the Purchase Invoice Transactions (tfacp1120s000) sessionand then the Purchase Invoices (tfacp1110s000) session. In the Transactions(tfgld1101m000) session, the status of the transaction is set to Ready.

Step 6 Transaction Error Log (tfgld1106m000)

If an error occurred during the processing of the purchase invoice header or atransaction line, a description of the error is entered into a log file.

For example, if the remaining amount (which is displayed in the PurchaseInvoice Transactions (tfacp110s000session)) is not zero, the following error islogged:

Document balance is not zero

BaanERP displays the error log after you close the Transactions session. Usingthe error description, you can solve the error and try to process the purchaseinvoice again.

Step 7 Finalization Run Numbers (tfgld1519m000)

Use this session to select or create the run number for which you finalize thebatch in which you created the purchase invoice. Double-click the run numberto start the Finalization Run Numbers details (tfgld1519m000) session, whereyou can select the batch you want to finalize. Click Select Batches, which startsthe Select Batches for Finalization (tfgld1111s000) session.

Step 8 Select Batches for Finalization (tfgld1111s000)

A list of batches is displayed. Select the Select check box for the batch youwant to finalize and choose Finalize on the Specific menu. BaanERP willattempt to finalize all transactions in the batch by posting them to the GeneralLedger (GLD) module.

Depending on the default settings for finalization (which you can access fromthe Specific menu), an audit list is printed that gives information about thefinalized transactions. If transactions could not be finalized, the reason for theerror is also printed.


Accounts Payable3-5

3.2 To create credit notes

To correct the amount payable for a purchase invoice, you can use a credit noteor an invoice correction. The procedures for entering credit notes and invoicecorrections are very similar to entering a regular purchase invoice.

Credit notes are entered in the Purchase Invoices (tfacp1110s000) session. Forthe creation of a credit note, you can use a transaction type of transactioncategory Purchase Credit Notes or Purchase Invoices.

If you select a Purchase Credit Note transaction type, the amount in the invoiceheader must be positive. The amount entered in the transaction line can be apositive debit amount or a negative credit amount, depending on the definitionof the transaction type in the GLD module.

If you select a Purchase Invoices transaction type, the amount in the invoiceheader must be negative. You can only create a credit note in this way ifnegative amounts are allowed for the transaction type you selected. The amountentered in the transaction line is a negative credit amount.

You can link a credit note to one or more invoices. To link a credit note to oneinvoice, simply enter the invoice’s document number in the Original Invoicefield of the Purchase Invoices (tfacp1110s000) session.

To link a credit note to several invoices, you must create a transaction using atransaction type of the Purchase Corrections category, which is defined forassigning credit notes to invoices. The Assign Credit Notes to Invoices(tfacp2120m000) session is started, in which you can select a credit note. Then,start the Assign Invoices to Credit Notes (tfacp2121s000) session in which youcan assign the credit note to invoices and distribute the credit note amount overthem.

3.3 To correct purchase invoices

The Purchase Corrections category can also be used to enter simple invoicecorrections. This arrangement is essential if, after posting the batch used tocreate a purchase invoice, modifications in the invoice header must be madewhich have consequences for the financial accounting.

A transaction type with the Purchase Corrections category can be defined to usethe Purchase Invoice Corrections (tfacp2110s000) session. If you enter atransaction using this transaction type, the Purchase Invoice Corrections(tfacp2110s000) session is started. Here, you can correct an invoice’s businesspartner, amount, or tax details.

The correction is posted to ACP as an extra line of the purchase invoice header.

Credit notes

Invoice corrections


Accounts Payable3-6

3.4 The sessions that are related to the main procedure

Terms of Payment (tfacp1110s000)

Terms of Payment are defined in the Financial Tables in the BaanERP Common(TC) package. The Terms of Payment are linked to the Invoice-from BusinessPartners in the General Data (COM) module. If an invoice is entered in the ACPmodule, BaanERP generates payment terms from these defaults. The terms ofpayment include:

n The period within which invoices must be paidn The discount granted if an invoice is paid within a given periodn The payment periodn The discount periodn The discount amount

You can adapt the default values that BaanERP calculates in the Terms ofPayment (tfacp1111s000) session. You can start this session from the PurchaseInvoices (tfacp1110s000) session or the Purchase Invoice Details(tfacp2500m000) session.

Payment Schedules (tfacp1103m000)

A payment schedule can be linked to a business partner’s terms of payment inthe TC package. You can also create or maintain a payment schedule for aninvoice in the ACP module.

The payment schedule specifies what percentage of the invoice amount must bepaid on what date. BaanERP uses the payment schedule each time a paymentfor the invoice is made.

You can start the Payment Schedules (tfacp1103m000 session from thePurchase Invoices (tfacp1110s000) session or the Purchase Invoice Details(tfacp2500m000) session.

Remove Fully Paid Purchase Invoices (tfacp2250m000)

This session removes all the purchase invoices in the ACP module that are fullypaid. All the related transactions must be fully posted to the GLD module. If aninvoice is deleted, the related payment document, purchase corrections,payment schedules, and one-time business partner addresses are also deleted.

Run this session regularly to improve the performance of your system.

Write off Payment Differences (tfacp2230m000)

In this session you can write off small differences in open invoice amounts andpayment amounts to avoid the existence of very small open amounts. You canindicate the maximum amounts that you consider a payment difference. Thefound payment differences are posted in one transaction to the paymentdifferences account in the GLD module.


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Write off Currency Differences (tfacp2240m000)

If an invoice is raised in a foreign currency, a currency difference can occurbecause of exchange rate fluctuation. In this session, you can write offunrealized currency differences, which are currency differences that arecalculated for invoices that are not yet paid. You can calculate unrealizedcurrency profit or loss at any time between invoice registration and fullpayment. Currency losses are always posted to the GLD module, but currencyprofits are only posted if this configuration is indicated in the ACP Parameters(tfacp0100s000) session.

The currency differences are posted to the GLD module in one transaction, tothe Unrealized Currency Profits and the Unrealized Currency Losses accountsas defined in the Ledger Accounts by Financial Business Partner Group(tfacp0111m000) session.


Accounts Payable3-8

Accounts Payable4-1

This chapter describes:

n The main purchase invoice matching proceduren Sessions related to the main proceduren The self-billing procedure

4.1 Purchase-invoice matching

This procedure consists of entering, matching, and approving a purchaseinvoice. A purchase invoice goes through this procedure if it is related to orders,which means a logistic transaction (a purchase order) is matched with afinancial transaction (a purchase invoice). The logistic transaction (the purchaseorder), can only come from the Purchase Control (PUR) module in BaanERPDistribution (TD).

If the invoice is directly related to your business procedure, and a purchaseorder exists for that procedure, the invoice type is Invoice Related to Orders.The invoice will go through the invoice matching procedure.

The invoice can be matched manually or automatically. If you match manually,you find the orders that belong to your invoice and match the two against eachother. If you match automatically, you enter the order number or packing slipnumber of the related order when you create the invoice, and BaanERP attemptsto match the invoice for you. To enable automatic matching, you must select theAutomatic Matching check box in the ACP Parameters (tfacp0100s000)session.

In BaanERP, you match invoices against order lines. Therefore, invoices can bematched before the goods they relate to are received. However, the goods mustbe received before you can approve the invoices. You can periodically approveall eligible invoices in a batch.

A purchase invoice has been registered in the ACP module, has been matchedwith one or more purchase orders and has been approved. During the process,several purchase invoice transactions have been generated and posted to theGLD module:

Example of postings from ACP to GLD

Event Ledger account Debit Credit

Incoming goods Inventory $ 100.00

Invoice Accrual $ 100.00

Invoice entry Invoice Receipts $ 100.00

Accounts Payable $ 100.00

Invoice approval Invoice Accrual $ 100.00

Invoice Receipts $ 100.00

4. The purchase-invoice matching procedure


The purchase-invoice matching procedure

Accounts Payable4-2

The ledger account that is used as the Inventory account is indicated in themapping scheme in the GLD module. The ledger accounts for Invoice Accrual,Invoice Receipts, and Accounts Payable are indicated by financial businesspartner group in the ACP master data.

Figure 6 shows the steps in the purchase invoice matching procedure, and thesteps involved in this procedure are explained after the figure.

Transactions (tfgld1101m000)

Purchase Invoices (tfacp1110s000)

TransactionError Log

(tfgld1106m000)

1

2

3

Matched Purchase Invoice Transactions

(tfacp1133s000)4

Finalization Run Numbers

(tfgld1110m000)

5

Select Batches for Finalization(tfgld1111s000)

6

Match Receipts(tfacp2541m000)

7

Figure 6, The purchase invoice matching procedure


Use this session to indicate what type of transaction you want to create. Also,you must select the appropriate batch in which the transaction must be created.Transactions of the same batch are always finalized and posted together to theGLD module according to a certain financial period.

Create a new record and select a transaction type of the Purchase Invoicestransaction category. Save the record and click Enter Transactions. ThePurchase Invoices (tfacp1110s000) session is started.


Accounts Payable4-3


Use this session to create the purchase invoice header. First, BaanERP assigns adocument number to the invoice. This number is now the invoice’sidentification, together with the transaction type. Whether or not you canmanually change this number depends on the settings for the transaction type inthe GLD master data.

A lot of data is defined in the purchase invoice header, such as:

n The invoice-from business partnern The document (creation) date and due daten The total invoice amountn The currency datan The level of tax calculation and other tax datan Terms of payment

In the Invoice Type field, you must indicate if your purchase invoice is relatedto general costs or to one or more purchase orders. Select Invoice Related toOrders as your invoice type. Your invoice will go through the matchingprocedure.

Manual matching and approving can be performed entirely from the PurchaseInvoice (tfacp1110s000) session. You can also enter the invoice first and matchor approve it later using the Match/Approve Purchase Invoices(tfacp2507m000) session.

If the Automatic Matching check box in the ACP Parameters (tfacp0100s000)session is selected, BaanERP tries to match the invoice automatically. You mustenter the order number and/or the packing slip to which the invoice is related.BaanERP tries to match the invoice with the order lines of the purchase order.The price difference must fall within the tolerated limits.

You can manually match the invoice only if one of the following conditionsexist:

n Automatic matching is disabledn The correct order number or packing slip is unknownn The attempt to match automatically failed

Step 3 Match Receipts (tfacp2541m000)

To start the manual matching procedure, click Match Invoice. The MatchReceipts (tfacp2541m000) session is started.

This session lists order lines. If a purchase order is already linked to thepurchase invoice, only the order lines with the same order number aredisplayed. If no purchase order is linked to the invoice, BaanERP shows allorder lines that have a buy-from business partner related to the invoice-frombusiness partner on the invoice.

Automatic matching


Accounts Payable4-4

You can match the invoice with one, several, or all order lines. When you finishmatching, close this session. The following fields are updated in the PurchaseInvoices (tfacp1110s000) session:

n The Price Difference fieldn The Matched Amount fieldn The Amount Unassigned field

Step 4 Matched Purchase Invoice Transactions (tfacp1133s000)

If necessary, enter cost-item transactions and booking variance transactions byclicking Add Costs in this session.

Cost items are used to post extra costs, such as accounting expenses, to anorder-related purchase invoice. Booking variances are used to post thedifference between the invoice amount and the goods received amount. Thisdifference is created by the charges that were added by the invoice-frombusiness partner: for example, freight costs.

For one purchase-invoice header, you can enter one or more cost items orbooking variance transactions. Each transaction receives a line number thatidentifies it within the invoice’s document number. Each purchase invoicetransaction is posted to the General Ledger (GLD) module. You can define aledger account and dimensions for each transaction.

After entering the ledger account, transaction amount, and other data, save thetransaction and exit the Matched Purchase Invoice Transactions(tfacp1133s000) session. In the Purchase Invoices (tfacp1110s000) session, theEntered Transactions field and the Amount Unassigned field are updated.

When the unassigned amount is zero, you can approve the invoice by clickingApprove Invoice. Note that you can only approve the invoice if the goods arereceived for the order to which you have matched the invoice. If the orders arenot yet received, you can approve the invoice at a later time. For example, youcan periodically approve a selection of invoices using the Match/ApproveInvoices by Range (tfacp2280m000) session.

Step 5 Transaction Error Log (tfgld1106m000)

If an error occurred during the processing of the purchase invoice header or atransaction line, a description of the error is entered into a log file.

For example, if the remaining amount (which is displayed in the PurchaseInvoice Transactions session) is not zero, the following error is logged:

Document balance is not zero

BaanERP displays the error log after you close the Transactions(tfgld1101m000) session. Using the error description, you can solve the errorand try to process the purchase invoice again.

Invoice approval


Accounts Payable4-5

Step 6 Finalization Run Numbers (tfgld1519m000)

Use this session to select the run number for which you finalize the batch inwhich you created the purchase invoice. Double-click the run number to startthe Finalization Run Numbers (tfgld1519m000) details session.

Here, you can select the batch you want to finalize. Click Select Batches. A listof batches is displayed.

Step 7 Select Batches for Finalization (tfgld1111s000)

Use this session to select the batch you want to finalize. Use the Selectcheckbox to choose the appropriate batches, and then click Finalize on theSpecific menu. BaanERP will attempt to finalize all transactions in the batch byposting them to the General Ledger (GLD) module.

Depending on the default settings for finalization (which you can access fromthe Specific menu), an audit list is printed that gives information about thefinalized transactions. If transactions could not be finalized, the reason for theerror is also printed.

4.2 The sessions that are related to the main procedure

Match/Approve Purchase Invoices (tfacp2507m000)

If you did not (fully) match and approve the invoice in the Purchase Invoices(tfacp1110s000) session because, for example, the price difference was toohigh, you can use the Match/Approve Purchase Invoices (tfacp2507m000)session to process the invoice. The Match/Approve Purchase Invoices(tfacp2507m000) overview session lists the purchase invoices in the ACPmodule. In the details session, you can match, add costs, approve, andunapprove invoices one by one.

Match/Approve Purchase Invoices by Range (tfacp2280m000)

Use this session to match and/or approve a whole selection of invoices at onetime. If you let BaanERP approve the selected invoices, the transactions thatresult from the approval are posted in a single batch to the GLD module.

Approve Price Differences (tfacp1142m000)

Price differences can result from matching orders and invoices. The maximumprice difference amounts are defined in the Tolerated Price Differences by User(tfacp0150m000) session in the ACP master data. If the price differencebetween an order and an invoice becomes too great for an employee to be ableto process the invoice, you must use the Approve Price Differences(tfacp1142m000) session.

A specific, authorized employee must first approve the price difference in thissession. After that, the invoice can be approved using the normal procedure.

To approve a price difference, select the Approval check box.


Accounts Payable4-6

4.3 The self-billing procedure

For each purchase-order header, you can define whether self-billing is used.Self-billing is typically used if you have:

n A contract with the supplier for the price of the goods you are buyingn An agreement with the supplier that you will pay for the goods without

receiving an invoice for them

The supplier does not need to send an invoice. Instead, you use the self-billingprocedure to automatically generate invoices for these goods.

When the self-billing procedure is used, BaanERP creates, matches, andapproves invoices automatically when goods are received. All of theseprocesses are performed in the ACP module.

The entire self-billing procedure is carried out automatically by BaanERP:

The goods are received in Baan Warehousing (WH). In the ACP module,BaanERP generates a purchase-invoice document within the transaction type forself-billing, which is specified in the ACP Parameters (tfacp0100s000) session.BaanERP creates this document within the batch for self-billing that isgenerated each day. After the invoice is generated, BaanERP creates an openentry.

BaanERP matches and approves the document without any user interference.The matching and approving cannot be a problem because the invoice wasgenerated based on the order to which it is now matched. The postings to thegeneral ledger for the generated purchase invoice are created in the usual way(as described in Section 1.4).

You can also generate a range of self-billing invoices using the GenerateInvoice by Self-Billing (tfacp2290m000) session.

Accounts Payable5-1

This chapter describes the procedure for subcontracting invoicing.

5.1 Processing subcontracting invoices

This procedure can only be used if the Subcontracting check box in the ACPParameters (tfacp0100s000) session is selected.

Subcontracting occurs when a subcontracting item is purchased. If yourcompany hires certain services from another party (for example, when a part ofa project or an operation of a production order is carried out), subcontractinginvoices are created to pay for these services.

Part of each subcontracting invoice is not paid to the subcontractor but directlyto the tax authorities and to blocked accounts for the industrial assurance board(IAB), which collects the social security premiums. Subcontracting invoicestherefore need additional data that normal invoices do not have.

The additional data includes:

n A P.A.Y.E. tax authorities’ number for each subcontractor.

n A valid statement of account from the tax authorities for each subcontractor.The statement of account gives you the account status of the contractbetween you and the customer, the unpaid balance that is due, and thepayment history.

n The industrial assurance board (IAB) with which the subcontractor isaffiliated. The IAB is a public body responsible for collecting,administering, and making social security payments. From a subcontractinginvoice, a partial amount is transferred to an industrial assurance board.

n A remittance agreement, which contains agreements about how the paymentfor a project will take place. For example, the remittance agreement statesthe part of the invoice amount that must be paid to the subcontractor'sindustrial assurance board (IAB) and to the tax authorities.

You can print reminders and send them to subcontractors if statements ofaccount are missing or expired.

At the end of the procedure, all necessary data is present for the subcontractinginvoices in the ACP module. If necessary, reminders are printed for missing orexpired statements of account. The subcontracting invoices are processed in thesame way as other invoices in the ACP and CMG modules. Agreed parts of theinvoice amounts are directly paid to the IAB and the tax authorities linked to thesubcontractors.

5. The subcontracting procedure


The subcontracting procedure

Accounts Payable5-2

Figure 7 shows the steps in the subcontracting procedure, and the steps involvedin the procedure are explained after the figure.

Subcontracting Parameters(tfacp3100s000)

Industrial Assurance Boards(tfacp3520m000)

Subcontracting Invoices(tfacp3560m000)

1

2

3

Remittance Agreements(tfacp3530m000)

4

Print Remindersfor Missing Statements

(tfacp3440m000)

5

6

Subcontractors(tfacp3510m000)

Figure 7, The subcontracting procedure

Step 1 Subcontracting Parameters (tfacp3100s000)

Use in this session to indicate:

n The number of days a statement of account’s due date can be exceededbefore it becomes invalid. If a statement of account is invalid, the invoicesrelated to it are not selected for automatic payment, although you can stillselect them manually.

n The number of days between the sending of two reminders for missingdocuments. Reminders are generated for overdue or missing income taxstatements, IAB statements, and (possibly) safeguarding clauses from awarranty fund.

n The name and address of the tax collector.

Step 2 Industrial Assurance Boards (tfacp3520m000)

Use this session to enter the industrial assurance board(s) to which yoursubcontractors are affiliated and their addresses.


Accounts Payable5-3

Step 3 Subcontractors (tfacp3510m000)

Subcontractors are invoice-from business partners that have been indicated assubcontractors in the Invoice-from Business Partners (tccom4122s000) session.In the Subcontractors (tfacp3510m000) session, you must enter additional datafor the subcontracted business partners.

First, you must link an industrial assurance board to the subcontractor. Next,you must indicate the IAB number and the PAYE number, as well as the enddates for the statements for both these parties. You can also indicate if thesubcontractor is affiliated with a warranty fund.

Step 4 Remittance Agreements (tfacp3530m000)

The remittance agreement states how the total subcontracting invoice amount isdistributed and which part is paid either directly to the tax authorities and theIAB, or to a blocked account that belong to the subcontractor. When BaanERPprocesses the subcontracting invoice, the percentages defined here areautomatically deducted from the invoice amount before it is paid.

An end date is defined for the remittance agreement on the second tab of thesession. Here, you can also view the status of the agreement (its validity).

Step 5 Subcontracting Invoices (tfacp3560m000)

Use this session to display the division of the total invoice amount into:

n The wage partn The amount that is transferred to a blocked accountn The amount that is paid directly to the tax authoritiesn The amount that is paid directly to the associated IAB

If necessary, you can change the last three amounts in this session. You can alsolink an order number to the invoice.

Step 6 Print Reminders for Missing Statements (tfacp3440m000)

Certain valid documents are necessary for the subcontracting contract:

n A PAYE tax income statementn A IAB statement of accountn A safeguarding clause, if the subcontractor is affiliated with a warranty fund

Use this session to generate reminder letters for missing or overdue statements.


Accounts Payable5-4

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