It is possible to make a preliminary booking of a Purchase Invoice upon arrival. In some companies, Purchase Invoices are passed around within the organisation for some time, in order for the expense to be approved and classified properly.

When this option is used, the Invoice can be entered when it is received. In the illustration below, a Purchase Invoice has been entered and the Prel. Book box checked.

On saving, if so defined in the Sub System setting in the Nominal Ledger, Hansa will create a preliminary Nominal Ledger Transaction for the Invoice. This Transaction will contain normal VAT and Cost Account postings, but, instead of the usual Creditor Account, a preliminary Account (defined on card 1 of the Account Usage P/L setting) is credited.

Until the Invoice has been approved it can be amended, even though this Transaction has been created. On approval, a new Nominal Ledger Transaction is created, reversing the posting to the preliminary Account, replacing it with a debit to the normal Creditor Account.

In the example, an additional posting has been made to the Base Currency Round Off Account so that the Transaction balances in the second base Currency.

After the Purchase Invoice has been entered and the preliminary Transaction created, the Cost Accounts of any of the Purchase Invoice rows may be changed. This change will be reflected in the final Nominal Ledger Transaction, created when the Purchase Invoice is approved. Shown below is such a Transaction, where the Cost Account of 742 used at first has been changed to 440.

If a preliminary Purchase Invoice is credited, it can no longer be changed or approved and the preliminary Transaction is treated as the final one. This ensures that the Nominal Ledger remains correct.

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