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IFS 9 E-LEARNING CONTENTS:

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terial.htm

E-LEARNING:
ADVANCE SUPPLIER INVOICING

BY THE END OF THIS LESSON, YOU SHOULD KNOW:


How to create a supplier advance invoice.
How to handle a credit advance invoice.
How to enter a payment for a supplier advance invoice.
How to offset a supplier advance invoice against the final invoice.

BASIC DATA
ADVANCE SUPPLIER INVOICING

To be able to use Supplier Invoicing, you need to set up the basic data
described in the following lesson:
Supplier Invoicing Basic Data and Requirements

FUNCTIONAL DESCRIPTION
ADVANCE SUPPLIER INVOICING
A supplier advance invoice is issued when a supplier requests the
company to make a payment in advance
To make sure that the company commits to pay for the
purchases, or
Because supplier does not trust the companys liquidity.
Only cash amounts are handled at this stage. No materials are
transferred.
No costs will be posted until the final invoice is entered.

Advance invoices are issued when the supplier sends an invoice to


the company asking for money before delivery.
The request for payment does not usually contain any information
about the ordered goods or services
Advance invoices can be used in the following windows
Preliminary Supplier invoice
Supplier Invoice Entry
External Supplier Invoices
Postings for the payment of an advance invoice will be different to
that of other supplier invoices.

ADVANCE SUPPLIER INVOICES


GENERAL INFORMATION
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terial.htm

To create an advance invoice, the Advance Invoice check box in the


window that your are using to enter the invoice should be selected.
An advance invoice can be taxed.
It is possible to create credit advance invoices by entering a negative
amount as the invoice amount.
There is no special invoice type for advance invoices.
Advance invoices cannot be connected to zero invoices.

WORKFLOW

POSTINGS
Postings created for advance invoices are:
The full advance invoice amount is posted to:
IP16, Supplier Debts, Advance Invoice (Credit)
IP18, Unpaid Supplier Payments in Advance (Debit)
Tax amount in the advance invoice is posted to:
IP22, Tax Received, Advance Invoice (Debit)
IP24, Contra Account, Tax Received, Adv. Invoice (Credit)
There are no cost postings manually entered for advance invoices.

FINAL INVOICE

Final supplier invoice


Existing advance invoice(s) should be manually connected.
Connected advance invoice(s) should be paid/partly paid.
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terial.htm

Advance invoices connected to a final invoice are


automatically offset against it when the final invoice is posted.
The remaining amount to be paid to settle the final invoice is
equal to the total invoice amount less the sum of payments
made for the connected advance invoices.

EXERCISES:
Supplier Advance Invoices and Advance
Invoice PaymentsExercises

Basic Data Setup

Basic Data Requirements for Supplier Advance Invoicing


Purpose: The purpose of this exercise is to set up basic data required for supplier advance
invoicing.
Note: The basic data required will be found in the following links and will be the same as the
data required for the supplier invoicing process.
Supplier Invoicing - Basic Data Requirements Exercises
Separate Posting and Payment Authorization - Basic Data and Requirements Authorization
IFS 9 E-LEARNING CONTENTS:
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terial.htm

Main Exercise

Enter Supplier Advance Invoice


Purpose: The purpose of this exercise is to enter and post a supplier advance invoice which
can be paid and connected to another invoice in the following exercises. The way in which a
supplier advance is posted can be understood by viewing it's vouchers.
Windows:
Manual Supplier Invoice
1. Open the Manual Supplier Invoice window and create a new record.
2. Select FX from the List of Values for the Supplier field.
3. Enter ADV1 as the invoice identity.
4. Select the Advance Invoice check box.
5. Create a new record in the Line Information table.
6. Enter 0 in the tax code field.
7. Enter 1000 in the Gross Amount field.
8. Save the information. The status of the advance invoice will be Posted.
9. Right-click in the header of the Manual Supplier Invoice window and then click
Installment Plan and Discounts to open the Supplier Invoice Installment Plan and
Discounts dialog box.
10. Select the Authorized check box and click OK to close the dialog box. The status of the
supplier advance invoice will change to PostedAuth.
11. Right-click in the background of the Manual Supplier Invoice window and then
click View Vouchers to open the Supplier Invoice Vouchers window. The
following amounts can be viewed.

Debit Amount in Credit Amount in


Transaction Code
Accounting Currency Accounting Currency

IP18 (Unpaid Supplier Payments


1000
in Advance)

IP16 (Supplier Debts, Advance


1000
Invoice)

IP22 (Tax Received, Advance


0
Invoice)

IP24 (Contra Account, Tax


0
Received, Adv. Invoice)

Enter Payment for Supplier Advance Invoice


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Purpose: The purpose of this lesson is to make a payment for a supplier advance invoice so
that it can be connected to a final invoice. Once the payment is made, you can view the voucher
created for the mixed payment in order to understand how it is posted.
Note: In order to enter a Mixed Payment, the basic data required to make the mixed payment
should be set up.
Basic Data for Mixed Payment

Windows:
Mixed Payment
1. Enter a payment of 500 for ADV1 supplier invoice you entered in the Enter
Supplier Advance Invoice exercise. Save the voucher number with which the
mixed payment is posted when you approve it.
General Exercise for Mixed Payment

View Voucher
Purpose: The purpose of this exercise is to view the voucher created for the partial payment
you made for the supplier advance invoice in the Create Payment for Supplier Advance Invoice
exercise.
Windows:
Voucher Entry
1. Open the Voucher Entry window and query for the voucher number you saved in the
Create Payment for Supplier Advance Invoice exercise.

Debit Amount in Credit Amount in


Transaction Code
Accounting Currency Accounting Currency

PP1 (Cash Transaction) 500

IP18 (Unpaid Supplier Payments


500
in Advance)

IP16 (Supplier Debts, Advance


500
Invoice)

IP22 (Tax Received, Advance


0
Invoice)

IP24 (Contra Account, Tax


0
Received, Adv. Invoice)
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terial.htm

PP37(Supplier Payment in
500
Advance)

PP39 (Received Tax, Payments in


0
Advance)

PP41(Contra Acc Received Tax,


0
Adv. Paym)

Connecting Supplier Advance Invoice to the Final Invoice


Purpose: The purpose of this exercise is to create the final invoice and connect the advance
invoice to it.
Windows:
Manual Supplier Invoice
1. Open the Manual Supplier Invoice window and create a new record.
2. Select FX from the List of Values for the Supplier field.
3. Enter FNL1 as the invoice identity.
4. Right-click in the header of the window and then click Advance Invoices to open the
Advance Invoice Reference dialog box.
5. Create a new record.
6. Enter SI in the Series ID field and ADV1 in the Invoice No field.
7. Click OK to save the information and close the dialog box.
8. Create a new record in the Line Information table of the Manual Supplier Invoice
window.
9. Enter 0 in the Tax Code field and 2000 in the Gross Amount field.
10. Create a new record in the Posting Information table.
11. Enter 4021 in the Account field and 2000 in the Amount field.
12. Save the information. The status of the invoice is displayed as PartlyPaidPosted.

Checking the Amount Due of the Final Invoice


Purpose: The purpose of this exercise is to check the amount due for the final invoice in order
to show how the open amount of the final invoice is affected by the advance invoice connected
to it.
Windows:
Manual Supplier Invoice
1. Open the Manual Supplier Invoice window and search for the invoice with SI series ID
and FNL1 number.
2. Right-click in the header of the window and then click Installment Plans and
Discounts to open the Supplier Invoice Installment Plans and Discounts dialog box.
Note that the open amount of the invoice is 1500. The total invoice amount of 2000 is
reduced by the payment of 500 made for the advance invoice.

Enter Payment for Final Invoice


Purpose: The purpose of this exercise is to make a complete payment for the final supplier
invoice.
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terial.htm

Note: In order to enter a Mixed Payment, the basic data required to make the mixed payment
should be set up.
Basic Data for Mixed Payment

Windows:
Mixed Payment
1. Enter a payment of 1500 for FNL1 supplier invoice you entered in the Connecting
Supplier Advance Invoice to the Final Invoice exercise. Save the voucher number
with which the mixed payment is posted when you approve it.
General Exercise for Mixed Payment