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Supplier Invoice to Payment

Contents

Introduction

In Openbravo ERP, when generating an invoice, the payments details, such as the form of payment and payments terms (date and amount) are also created. In this chapter we will explain the supplier payment management, from the pending purchase invoice review to the final payment.

Abstract Business Process

The abstract supplier payment management process is defined by the following diagram:

[[Image:]]

These are the main sub-processes for it:

Roles Involved

The following roles are involved with this process:

Configuration

Some configuration needs to be done before performing this process. Please refer to the Configuration Manual.

Step-by-Step

The Finance Role should be used.

Manage Pending Invoices

There is currently no support in Openbravo ERP to review purchase orders and goods receipts pending to be invoiced.

Issue the Purchase Invoice

The Finance role should be used.

There are four ways of creating a Purchase Invoice:

1. Creating a Purchase Invoice Directly from a Goods Receipt

Use the Warehouse Management || Transactions || Goods Receipt window and find the receipt in question. See the Generate Invoice from Shipment button:

Supplier01.png

Click the button and confirm the dialog:

Supplier02.png

Note: You can also change the price list used for the pricing at this point.After confirming the dialog, the success message should be shown, indicating the number of the invoice that has been generated:

Supplier03.png

Navigate to the Procurement Management || Transactions || Purchase Invoice and find the invoice that has been generated. Make any corrections or add more lines if necessary and complete it since it will be left in Draft status otherwise:

Notice the payment plan that has been generated by the Purchase Invoice inside the [Payment Plan]:

Supplier04.png

This scheduled payment will be outstanding, indicating that you owe money to the vendor.

2. Creating an Invoice from Pending Lines to be Invoiced

Go to Procurement Management || Transactions || Purchase Invoice window create a new record:

Supplier05.png

Fields to note:

Save the record. Click the Create Lines From button:

Select a purchase order or a goods receipt that is pending to be invoiced from that supplier.

Once a pending document to be invoiced is selected, its pending lines (products) will automatically be displayed to be selected. Select the ones that were invoiced in the supplier's invoice and click OK.

Supplier06.png

Selected lines will be entered automatically into the [Lines] tab where they can still be modified or new lines added:

Supplier07.png

Complete the document. You will see that each line has been linked to the original purchase order and the goods receipt lines. This way, the whole flow of documents connected and navigable.

Supplier08.png

3. Creating an Invoice Manually

Sometimes there is no purchase order or a goods recept available from which to create the invoice, for example when purchasing services. In this case, the purchase invoice needs to be created manually from scratch. To  do so use the Procurement Management || Transactions || Purchase invoice window again and create a new record. When you´re done with the header, switch to [Lines]. Create as many records here as there are products invoiced:

Supplier09.png

Fields to note:

Save the record. Create new lines if needed. When finished, go to [Header] and Complete the document.

4. Copy lines from an existing Purchase Invoice

When you order the same or similar items from a Vendor, you can copy lines from a previous Purchase Invoice. First of all you enter the Header and select the Vendor as the Business Partner.

Then you click the button Copy Lines. In the popup you can click the invoice selector:

Supplier10.png

Which takes you to another selector, where you can filter for the specific Vendor:

Supplier11.png

Once you have found the invoice that you want to copy from, you select it and click Ok. The invoice is now selected and you can indicate if the price should be taken from the Pricelist:

Supplier12.png

After clicking the Ok button, the line(s) from the selected invoice get added.

Back at the [Header] complete the document using the Complete button.

Attach Supplier Invoice Information

A scan of the original supplier's invoice document can be attached to the purchase invoice inside Openbravo ERP using the paper clip icon in the toolbar.

Linking of documents

When the first two methods are used, the Purchase Invoice will be linked to the document it was created from. For example, each receipt line will be linked to the Purchase order line it delivers for. Within the [Lines] of the Goods receipt window the user can click on the links to drill down.

Supplier13.png

Each Purchase Invoice line will also be linked both to the Purchase order line and the Goods Receipt line it invoices. Within the [Lines] of the Purchase Invoice window the user can click on the links to navigate to either of them.

Supplier14.png

From the Purchase Order Header or Lines by clicking 'Linked Items', the connected Purchase Invoice and Goods Receipt information is displayed and by clicking the links, the user can navigate to these documents.

Supplier15.png

Payment Plan

When completing an invoice, a payment plan will be created related to the invoice. Revise it inside [Payment Plan]:

Supplier16.png

These are the relevant fields:

A brief summary of the payment plan information of each invoice appears in the invoice header. These are the relevant fields:

At this point the payment status is Awaiting Payment

Review Payments Due

Payments due to be paid can be reviewed using the Purchase Invoice window (Grid View) using a column filter criterion "No" for the column Payment Complete.

Supplier17.png

The Financial Management || Receivables and Payables || Analysis Tools || Payment Report displays payments and their statuses:

Supplier18.png

Supplier19.png

To see which invoices need to be paid, you can filter by Status selecting the Awaiting Payment option.

There are 3 ways to pay vendor bills:

1. Payment Proposal

The easiest way to pay existing bills is through Payment Proposal Window. Create a new payment proposal for a payment method and a financial account and select the due payments. A payment proposal can be created to pay one or multiple vendors/suppliers. When processing the document all payment events will be created at once.

Navigate to Financial Management || Receivables & Payables || Transactions || Payment Proposal  ||  Header window.

Supplier20.png

These are the relevant fields:

Click On Select Expected Payments button to select payments planned till Due Date.

Supplier21.png

Select pending invoices or orders to be paid and modify the amount to be paid if needed.

If the amount paid is less than the outstanding amount, the system will offer the options to 'Write of the difference' or 'Leave this as an underpayment' (the remaining debt will have to be paid afterwards). In case that the amount paid is more than the outstanding amount, the system offers the option to 'Write off the difference'.

Once the selection is complete, click on the Process button:

Supplier22.png


and then on Generate Payments button.

Supplier23.png

Select the Action and click Process for the payments to be created.

Supplier24.png

The payment status has changed to Awaiting Execution (when an automatic Execution type is defined) or Payment Made (when a manual Execution Type is defined)

The finance staff can see the pending payables with the Payment Report and Payment Aging Balance report.

2. Payment against an invoice

It is also possible to make a payment directly against an existing invoice. Navigate to Procurement Management || Transactions || Purchase Invoice window.

Supplier25.png

Once a purchase invoice is processed, Add Payment button is displayed. Press the button to pay the invoice.

Supplier26.png

Modify the amount if needed and click on process to pay the selected amount. Additional pending invoices or orders can also be selected and paid.

If the amount paid is less than the outstanding amount, the system will offer the options to 'Write of the difference' or 'Leave this as an underpayment' (the remaining debt will have to be paid afterwards). In case that the amount paid is more than the outstanding amount, the system offers the option to 'Write off the difference'.

Once the selection is complete, click on the Process button

Supplier27.png

Fields to note:

NOTE: The payment amount can also be automatically reflected in the financial account (bank or cash) when processing the Make Payment document, in the case that the payment method is configured to do that step automatically. See Payment Method configuration.

The payment status has changed to Awaiting Execution (when an automatic Execution type is defined) or Payment Made (when a manual Execution Type is defined)

3. Payment Out window

Another way of paying existing bills is using the Financial Management || Receivables & Payables || Transactions || Payment Out window:

Supplier28.png

Fields to note:

Note that the amount is not editable, since it will be calculated as sum of the details selected. Press Add Payment Details button.

Supplier29.png

Fields to note:

               Supplier30.png             

Multiple GL Items can be added as part of the payment detail. The amount in the payment header will be automatically populated with the aggregated value.

If the amount paid is less than the outstanding amount, the system will offer the options to 'Write of the difference' or 'Leave this as an underpayment' (the remaining debt will have to be paid afterwards). In case that the amount paid is more than the outstanding amount, the system offers the option to 'Write off the difference'.

Once all the details are selected or added press the Process button.

Supplier31.png

Fields to note:

NOTE: The payment amount can also be automatically reflected in the financial account (bank or cash) when processing the Make Payment document, in the case that the payment method is configured to do that step automatically. See Payment Method configuration.

The payment status has changed to Awaiting Execution (when an automatic Execution type is defined) or Payment Made (when a manual Execution Type is defined)

Execution Process

Different ways of paying have different steps to be executed. For some payment types you might need some additional system steps. For example for payment with a check, you want to print the check on your local printer. Also, payment by credit card would require system steps.

For all these payment forms that require a seperate system activity, you choose the Execution Type 'Automatic' in the Payment method configuration. When selecting 'Automatic' the field 'Execution Process' appears. The execution process is a definition of the activity that the system has to execute.

An overview of all the Execution processes can be found in Financial Management || Receivables & Payables || Transactions || Payment Run screen.

In case of a cash payment, there is no system process and the execution type is set to 'manual'.

The execution process can be activated by clicking the 'Execute Payment' button on the Payment Out or Payment Proposal screen or by going to the Payment Execution process.

The Payment Status will change from Awaiting Execution to Payment Made.

Payment Transaction

Navigate to the Financial Management || Receivables & Payables || Transactions || Financial Account  || Account  window and select a defined Financial Account.

Financial Accounts are used in Openbravo to represent accounts at financial institutions, such as bank accounts, credit cards, electronic payment services, as well as cash and petty cash registers.

Go to the Transactions tab to see the transactions associated with this financial account.

Supplier32.png

Fields to note:

Grid:

Add Transaction

The user can add a Transaction (Payment, GL item or Bank Fee) to the account by clicking on the Add Transaction button.

Supplier33.png

In the grid all the completed payments will appear. Select them and press OK button. The user can also add a new payment clicking on the Add Payment button. In a new popup all the pending payments will be shown based on the selected filtering option.

Supplier34.png

After clicking on the Process button, the application will return to the previous popup and the recently added payment will be shown in the grid. This is the result of adding all the payments as transactions.

Supplier35.png

The payment status has changed from 'Payment Made' to 'Withdrawn not Cleared'.

Accounting

Posting of a Purchase Invoice

When a purchase invoice is posted the general ledger entry is the following:

Supplier36.png

The accounts of the post are retrieved according to this configuration:

Posting of a Payment

The accounts configured in Financial Management || Receivables & Payables || Transaction || Financial Account >> Accounting Configuration will be used when posting a payment.

Supplier37.png

In the example, as the In Transit Payment Account has been configured, when clicking on Post button on Financial Management || Receivables & Payables || Transactions || Payment Out || Header, a posting will be made to the In Transit Payment Account

Supplier38.png

The following journal entry will be created:

Supplier39.png

Cash & Bank

Please refer to the Financial Account to Reconciliation chapter of the user manual for more information on how to reconcile Financial Account transactions.

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This page has been accessed 10,446 times. This page was last modified on 28 March 2012, at 16:39. Content is available under Creative Commons Attribution-ShareAlike 2.5 Spain License.