Entering a Purchase Invoice - Terms Card
- Pay Term
- Paste Special
Payment Terms setting, Sales/Purchase Ledger
- Default taken from Customer (Purch. Pay Terms)
- Payment Terms entered here will determine the Due Date (below). Payment Terms records entered using the Sales Ledger setting can enable a system of early settlement discounts to be established.
- Payment Terms are also the means by which Cash Notes and Credit Notes are distinguished from ordinary Invoices. Using 'Paste Special', select a Payment Term record of the "Cash" or "Credit Note" type respectively. When the record is then approved and saved, the appropriate Nominal Ledger Transaction will be created. In the case of Cash Notes, this will credit the Cash Account (as specified in the Payment Term record or in the Account Usage P/L setting) rather than the Creditor Account, while in the case of Credit Notes, the Transaction will be a reversal of the original Invoice Transaction.
- Cash Notes are immediately treated as paid and so will not appear in your creditor reports. There is no need to enter a Payment against them. If you need to reverse a Cash Note, use a negative Cash Note, not a Credit Note.
- When you select a Payment Term of the "Credit Note" type, enter the number of the Invoice to be credited in the Credit of Invoice field, using 'Paste Special' if necessary to bring up a list of open (unpaid) Invoices.
- Cash Discount
- The amount of the cash discount, if any. The figure will be calculated from the TOTAL using the formula attached to the specified Payment Term record.
- Reference
- Record here any additional code by which the Purchase Invoice can be identified.
- Hold
- Check this box if you wish to prevent this Purchase Invoice from being paid. You can do this after the Invoice has been approved.
- Prel Book.
- Used for preliminary (temporary) booking of Purchase Invoices. If you use this option, a Nominal Ledger Transaction will be generated for the preliminary booking when you next save the Invoice. Normal VAT and Cost Account postings take place, but, instead of the usual Creditor Account, a preliminary Account (defined on the 'Creditors' card of the Account Usage P/L setting) is credited. As long as the Purchase Invoice is in the temporary state, you can change the Cost Accounts in any of the Purchase Invoice rows. When you approve the Purchase Invoice, a new Nominal Ledger Transaction will be created, reversing the posting to the preliminary Account and replacing it with a debit to the normal Creditor Account. Any change in the Cost Accounts used will also be reflected in this Transaction.
- This check box is described in more detail on the Preliminary Booking page.
- Due Date
- The last day for payment of this invoice, calculated by FirstOffice using the Invoice Date and the Payment Terms. You can change the Due Date, even after the Invoice has been approved. If you receive an extended credit time for this Invoice, it will be re-scheduled in your Purchase Ledger.
- Discount Date
- The date by which you should pay the Invoice if you are to receive a cash discount. This will be calculated using the formula attached to the specified Payment Term record.
- Credit of Invoice
- Paste Special
Unpaid Purchase Invoices
- If you are entering a Purchase Credit Note, (a "debit note"), enter here the number of the Purchase Invoice being credited. The Purchase Invoice being credited cannot itself be a credit note.
- Remember to specify a Payment Term of type "Credit Note" in the Payment Terms field: you must leave the Credit of Invoice field blank when the Payment Term is of any other type.
Introduction to the Purchase Invoice Register
