Projects:Financial Invoices/Functional Documentation

Contents 1 Overview & Justification 1.1 Purpose 1.2 Scope and Overview 1.2.1 In Scope: 1.2.2 Overview: 1.3 Justification 1.4 New definitions and acronyms 2 Functional Requirements 2.1 Invoices Booking

Overview & Justification

Purpose

The purpose of this document is to describe the Functional Specifications of Financial Invoice Lines in core enhancement.

Currently Openbravo allows any sales and purchase invoice posting through product. We have to configure goods in product configuration. Some company/customer don't want treat their assets as a product.They don't want posting to be happened in product account. They want directly posting in the asset account which is configured in general ledger. It is not only useful for assets. It is also useful for any posting directly on general ledger in sales and purchase invoices.

Scope and Overview

In Scope:

The Financial Invoice Lines is going to cover the following main areas:

• G/L Item Accounting Setup
  • Enable in Financial Invoices check box for flag purpose
  • Tax Category combo box
• Changes in the Invoice Line:
  • Financial Invoice Line check box for flag purpose
  • New combo/select box for G/L Item

Out of Scope:

It is not dealing any label changes or definition. It should be belong to template for specific customer. For example one of the customer wants to have Purpose instead of Description when we choose general ledger item in invoice line screen. It can be dealt in their specific templates , not through this enhancement.

Overview:

1. G/L Item Accounting Setup:

Enable in Financial Invoices - This new flag must be set to "Yes" which means that only those G/L items marked as "Enable in Financial Invoices" will be shown to be selected by the end-user while booking a Financial Invoice in the Invoice Line window. Besides and in case the end-user selects this new flag the fields "Tax" and "Withholding" will be automatically removed from the G/L window and only "Tax Category" new field will be shown there as described in the next sentence. It is important to remark that a new field needs to be created for the G/L item which is the Tax Category, therefore it can be later on used to get the appropriate Tax for each Invoice Line.

2.Changes in the Invoice Line:

We don't have any modification on header screens of purchase or sales invoices. We will have a flag in Lines screen that should be useful whether business user choosing product based or general ledger based posting in given line. We will also have mixed entries. one can be product and the other one can be general ledger item in the same invoice line.

For example say if financial invoice line is yes, he can choose appropriate general ledger item from account/gl item id combo box. if financial invoice line is no, it will be usual steps what we have before.

Justification

Some of the customers want to posting some of the expenses or revenue directly on general ledger item, but not through products in purchase or sales invoices. For example, one of the customer wants booking of additions and disposal of assets directly posting to assets account rather they don't want treat their assets as product and they don't want to configure assets in to product account. So this case we have to allow our invoice lines to accept general ledger item directly instead of product. If user choose general ledger item, we have to directly posting into chosen general ledger item and ignore product account. The same scenario will be fit enough for "Tax not deductible organization" where we will treat VAT as a expenses of general ledger item instead of product expenses account. It is same across globe. So we can for core enhancement rather specific module.

New definitions and acronyms

• Enable in Financial Invoices:

It is a new flag in gl item configuration to indicate the configured gl items will be shown in the purchase or sales invoice lines to book an account(alternate to product)

• Financial Invoice Line:

It is a new flag to distinguish between G/L item and product lines.

• Account Id:

It is general ledger item id. It should be configured at...It can be appeared in purchase or sales invoice lines for financial invoice line options.

Functional Requirements

Invoices Booking

• In case it is a valid asset and it is not damage - the corresponding Asset Invoice can be booked to an Asset Account (as a G/L item previously created). The same scenario will be very much fit enough to book any general ledger item as alternate to product in purchase invoice or sales invoice.

Besides, it is important to highlight that:

• A Draft Asset Invoice can be understood as Asset Invoice do not mark as accurate or approved.
• A Complete Asset Invoice can be understood as Asset Invoice mark as accurate or approved which therefore can be booked. However we don't have any changes in the existing flow because of these thumb rule.

Below Invoice Booking data must be entered while booking an Asset Invoice:

• Account - this will be a G/L item previously created once the asset account to be booked is know.
• Description - this is the product name (by example "Computer A") which do not match any OB "product" as such.

Every time an asset invoice needs to be booked a G/L item must be created previously and as soon as the asset account is known at the application path Financial Management || Accounting || Setup || G/L Item || G/L Item, with below information:

• G/L name = Asset Account
• Tax = (THIS FIELD SHOULD ALWAYS BE EMPTY) as Tax should be taken from the Invoice Line, based on the Tax Category selected as described below.
• Withholding = (THIS FIELD SHOULD ALWAYS BE EMPTY) as it can not be applicable for financial invoice line booking through gl item.
• It is important to remark that new fields need to be created for the G/L item which are the Tax Category and Enable in Financial Invoices, therefore it can be later on used to get the appropriate general ledger account for each Invoice Line.

• Debit/Credit accounts both fields must be filled-in with the asset account for the selected Accounting Schema

For booking an invoice the end-user must navigate to : Procurement Management || Transactions || Purchase Invoice || Header
Once there below information should be entered:

• Client
• Organization
• Transaction Document = AP Invoice
• Invoice Date
• Posting / Booking Date
• Business Partner (Vendor or Supplier)

Then end-user must navigate to : Procurement Management || Transactions || Purchase Invoice || Lines
Once there and for getting the above implemented in the system below new fields/ and tab must be created at Invoice line level:

• Financial Invoice Line (yes/no) flag - in case the invoice line is a financial invoice line which means not a product but an account is going to be entered, the end-user needs to get it selected as YES. If that is the case below changes will be implemented.
  • Account - end user must select here the G/L item for which the asset invoice is going to be booked.
  • Product field will be removed
  • Description - The end user to enter the asset name with Description

Besides end-user must also filled-in below information:

• Invoiced Quantity - Asset quantity to be booked
• Net / Gross Amount - Asset cost excluding or including tax
• Tax - tax rate setup for the G/L item

Once the Invoice is completed and posted below posting must be shown:

100.000,00 Asset Account (0730010) DEBIT[Note: Debit and credit account are configured in the path of Financial Management || Accounting || Setup || G/L Item || G/L Item >> Accounting]
19.000,00 VAT deductible (2600000) DEBIT
119.000,00 Vendor Liabilities(4400000) CREDIT

Tax As Expenses

VAT will be posted as an expenses in case of Not Tax Deductible Organization. If it is a product, it is a product expenses account. In our case it will take the account from general ledger accounting configuration. So VAT deductible entry will be differ for Not Tax Deductible organization, however there is no changes in the tax deductible organization.

Freight / other Asset Cost

In case of freight cost or any other additional cost an additional invoice or an additional invoice line must be entered. The end-user must filled in below information:

• Account - asset account to which freight cost must be booked.
• Description - text field for the end user to enter the freight cost description.

Besides end-user must also filled-in below information:

• Invoiced Quantity - freight or other cost quantity
• Net / Gross Amount - Freight Cost
• Tax - tax rate setup for the G/L item which could be changed.

Once the Invoice is completed and posted below posting must be shown:

500,00 Asset Account (0730010) DEBIT
95,00 VAT deductible (2600000) DEBIT
595,00 Vendor Liabilities (4400000) CREDIT