The basic information for an invoice is the invoice number and amount. The amount must be distributed to at least one General Ledger account. It can be apportioned to many accounts. The invoices that are entered on-line are distributed as they are entered because the invoice detail is not being captured simultaneously. The General Ledger distribution is recorded on the Accounts Payable transaction file of current activities, separate from the permanent invoice record.
The standard Invoice Entry uses Distribution Codes to reduce keying. New invoices are assumed to default their service charge status from the supplier. They are all assigned to the current period with the original amount being the amount due. The invoice date, which may differ from the current date, is not used in aging. The due date is usually calculated to be one month from the current date. Aging begins with the first month-end after the original date.
Some users use the precision of the full G/L Account to distribute expenses. This form of invoice entry was created to meet this need. This form of invoice entry also lets you change the Invoice Due Date during entry. In addition, the invoice key is treated as one entry of nine characters with a numeric field exit.
Assigning Invoices to G/L Periods
Another feature of Invoice Entry with G/L Distributions is to assign invoices to particular G/L periods. In regular processing the distributions for an invoice are assigned to a G/L Period when the they are released to the General Ledger. This Invoice Entry assigns each invoice to a particular G/L Period during invoice entry. The distributions will then only be released to the General Ledger the next time there is a release to that particular G/L Period.
Every invoice entered through Invoice Entry with G/L Distributions is assigned to a Batch when it is first entered. The invoices can then be reported by batch for control purposes. At this time there are no other payables functions that use the Batch assignment.
A credit note may represent a general adjustment to the supplier account or a credit received without instructions for allocation. These must be recorded immediately in order to reflect the correct supplier balance. A credit invoice remains in the system until it is zero balanced by distribution to other unpaid invoices.