Concepts Tasks Settings Financial System Entries The invoice line distribution identifies the “accounts” (that is, the work order task, asset, cost type, warehouse, and GL account) that are charged with the cost of the line. This is the full amount of the charge. It does not reflect the amount that was charged when the materials were received. The invoice line distribution is what the invoicing clerk sees and works with when entering the invoicing. The invoice financial system entries identify the accounts and amounts to be updated in the financial system to reflect the difference between the receipt and the invoice. This assumes that you are already interfacing purchasing receipts to your financial system. Financial system entries are generated when an invoice is posted. Note: If necessary, you can change the site settings so that full financial system entries are generated for invoice lines, instead of the default behavior described above. This would reflect the full amounts and accounts charged on the invoice. However, you would only use this setting when you are not interfacing purchase receipts to your financial system. Depending on the nature of the changes between the receipt and the invoice, the financial system entries can consist of: • Two entries: One to update the AP Accrual account with the value of the invoice, and a second entry to clear the value previously charged to the RNI accrual account. These two entries are generated for all invoices that are matched to a receipt. • The basic two entries, plus entries to reflect differences between the receipt and invoice price: If the amount being charged on the invoice line differs from the receipt values, additional entries are generated for each account charged. These entries reflect the difference between the receipt value and invoice value. The AP accrual and RNI clearing entries are also generated. • The basic two entries, plus entries to clear the accounts charged on the receipt, plus a set of entries to reflect the accounts and amounts charged on the invoice: If the accounts charged on the receipt are overridden on the invoice line, entries are created to clear the accounts and amounts that were charged with the receipt. A complete set of entries is created for the accounts and amounts identified on the invoice distribution. The AP accrual and RNI clearing entries are also generated. • The AP accrual entry, plus the distribution from the invoice line: For invoice lines not matched to a source transaction, the financial system entries are a straight copy of the invoice line distribution entries. The AP accrual entry is also generated. No entry is generated for the RNI accrual account in this case. • If necessary, an entry can also be created in the invoice debit/credit balancing account. The system uses this account to correct small differences in an invoice’s debit and credit entries due to rounding or currency exchange rates. Normally, this account is not used. Note: To set the financial system entries rule, see **Enabling Purchase Liability Creation and Setting Invoicing Policies.
