Pay by Invoice

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Slide notes: In this tutorial we are working with AP Creditors, and we are going to demonstrate how to use the ad hoc "Pay by Invoice" function from the AP Master Account.

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Slide notes: So this is the Account we will be working with. There are of course other methods to pay many Creditors at the same time, i.e. in bulk, but this example is the one we may use for ad hoc Payment arrangement, i.e. to pay "on demand".

We choose the "Pay by Invoice" function.

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Slide notes: We may select a Date up to which Invoices may be included for this Payment.

When we process a new Invoice, we can of course state when the Invoice is due for

payment, and the date we use here, will signal which Invoices to include for Payment,

i.e. Invoices that are flagged for payment before or by the selected date.

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Slide notes: When we choose the PAY function, the system will scan through Invoices that qualify for inclusion in the Payment. As it looks at each of these Invoices, the system will also evaluate the Invoices, and if there is any aspect of the Invoice that needs clarification or confirmation, then the Invoice will be prompted as in this case, so that we can attend to it before it may be paid.

In this case, we see an entry at the bottom which is flagged as a potential "Invoice Payment Reduction" item. Why so? Well, the system thinks that this item is actually a reversal of one of the Charge Items listed above, and throws up a "?" to be clarified.

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Slide notes: It is now up to me to tell the system how to deal with this Transaction that has been sensed.

I can drill the Item to Transaction level if I need more information, and I can choose to APPROVE or NOT APPROVE it as a Payment Reduction.

In other words, if I do not approve it, then the Payment Amount for this Invoice will stay the same, but if I approve it, then this item will cancel out the Charge Item and therefore the total payment for the Invoice is adjusted down accordingly.

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Slide notes: Notice that the Adjusted Settlement Amount has now been changed, i.e. reduced from the original Settlement Total.

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Slide notes: We may note also that the Expected Invoice Total on the right is indicated as zero, and in the status box the system informs that when this is the case, then the system does not attempt to balance the Invoice, i.e. to ensure that the Invoice is complete of all Items adding up to the expected total.

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Slide notes: So we are done with this particular Invoice and can just save it.

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Slide notes: The next Invoice coming up in this example is interesting, because it also has a potential Payment Reduction Item, which is of course the reason the system is prompting this Invoice.

It is an interesting example because if I approve this one, then the Payment will be reduced to zero, i.e. then there is nothing to pay on this Invoice.

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Slide notes: Now the Adjusted Settlement is zero. Therefore, there is no further purpose for this Invoice to be included for Payment and I might as well close it.

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Slide notes: Once the system finds no further issues with any of the Invoices selected for inclusion in the current Payment, then we get this step.

Now we can check the Payment Reconciliation and proceed from there.

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Slide notes: On the Recon, we may include additional Text for the attention of the Supplier.

Of course, it is not mandatory to send the Payment Recon along with our Payment to the Supplier, but some do.

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Slide notes: If the system senses any prior Payments for which we should be in credit at the Supplier, then it will be included here, but may also be deleted if we do not approve of the payment reduction.

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Slide notes: And of course, all the Final Amounts for all of the included Invoices are listed.

If at this stage, we wish to remove any of these Invoices from the Payment, then we can simply delete them from this Recon.

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Slide notes: We can also produce a printout of this Payment Reconciliation, and in some cases it is part of the control procedure to attach this document for the person who will sign the cheque.