Understand AP Review Holds for PO Invoices: Essential Rules for AP Efficiency
AP Review is a series of rules that can be enabled for both audit and functional catches. AP Review runs during the time when invoices are being sent to the ERP. Its purpose is to identify instances where a user may have bypassed required steps or where data has changed between validation and export. Additionally, some rules are specific to the ERP in order to accommodate limitations in the invoice import process. This article provides insights for each holds associated with the AP Review process for PO invoices.
Review Posting Date (Applicable to Non-PO Also):
Nimbello allows for a variety of options regarding the posting date to which the invoice applies within the ERP. In most instances, the posting date is either the date of import or a static date, such as the last day of the posting period month. However, during month, quarter, or year-end, there may be additional requests regarding the specification of the posting date. In such cases, the "Review Posting Date" rule is enacted.
In the "Dates" setting, the AP user will select the beginning of the review period as the review date and the end of the review period as the posting date. Invoices with invoice dates between those two dates can be held in AP Review for classification under the posting period to which the user wants the invoice assigned.
If the user chooses the "Current Period," the invoice will export in the next transmission. If the user chooses the "Next Period," the invoice will be held until the review and posting dates are cleared.
Invalid PO Line:
An Invalid PO Line AP Review rule refers to where there is one or more PO Line numbers assigned to an invoice that are no longer valid. The following are possible cases in which this hold can occur:
- The invoice is in Ready to Export with valid data, but the PO file fails to import. This then ultimately deactivates the PO lines prior to exporting.
- The invoice is in Ready to Export with valid data and the PO file is imported successfully, but the PO line is no longer valid.
- User used the Status Changes page to force the invoice to Ready to Export without fixing the error.
Total Amount Error:
This hold is not a commonly occurring error, but it may happen for several distinct reasons. The Total Amount Error identifies where the calculated subtotal of the invoice is different from the given total of the invoice. This situation can occur when the receipt dollar pairing is derived from the PO, but the rounding differs from that of the vendor.
Zero Extended Amount in Invoice
There are possible instances in which a vendor will send an invoice line for a zero extended amount, or a user will update a line to have a zero extended amount. Clients are occasionally indifferent, however there could be issues. If clients oppose zero extended amounts, this rule catches those invoices. Furthermore, if the client decides to process the invoice regardless, then it will need to manually be incorporated into the ERP system.
Receiver Number Missing and Receiver Quantity
The receiver number is an incredibly crucial piece of information which informs clients on what the vendors claimed to have shipped and what was actual received. Especially for an ERP system employing a 3 Way PO method, this hold is activated to ensure that each of the invoice lines exporting against the PO has a valid receipt registered against it.
A complementary rule called Receiver quantity exists, whereby the system verifies that the assigned quantity is sufficient to cover the invoice listed in its corresponding receipts.
PO Approval Missing
PO Invoice Approval can be turned on or off per client and per PO type. If there are no PO Invoices that need to have an approval previous to exporting to the ERP, then this rule is not applicable. If there are PO types that require an invoice validation (such as Blanket, Encumbrance, Capital Expenses), then this rule where catch where that has been bypassed in the workflow. The PO Approval process occurs at the end of a PO workflow as it is about to reach Ready to Export.
GL code Format Do Not Match
To prevent any incorrect posting to the ERP system, a hold is implemented specifically for invoices with additional charges. This hold serves as a checkpoint, capturing invoices where the GL Code associated with any of the additional charges does not adhere to the specified format. By identifying such invoices, this hold ensures that they are flagged and addressed before they are improperly posted to the ERP system.
GL Account is Missing for Additional Charges:
The rule GL Account is Missing for Additional Charges functions similarly to the GL Code Format rule. It verifies whether additional charges being sent to the ERP have a corresponding GL Code assigned, as per the ERP's mandatory requirement. This check ensures that all additional charges are properly accounted for in the system.