AP Advance Billings


(system) #1
You are not missing anything, the A/P advance billings does not work the way
most of us would like it to. However, it is on the list of changes for 5.0,
so hopefully it will work correctly then. We struggled with this and found
the following method to work best for us:

At pre-pay invoice(s):
1. Enter an invoice for the prepayment.
a) Go to AP > General Operations > Invoice Entry.
b) Add Invoice.
c) Add Advance Billing Line.
d) Select PO/Line.
e) Enter Amount.
f) Add 'Prepaid Expense' account in GL Distribution. For us, this account
is: 14403 WIP-Prepaids.
g) Post

NOTE: Advance Billings do not pull forward from the purchase order when the
receipt line is invoiced. A suggested method of tracking Advance Billing
Lines on purchase orders is through the Accessories/Export Utility or a
Report Builder Report using the APInvDtl table. The Advance Billing Line is
referenced in the LineType field.

2. Enter a check for invoice payment.
a) AP > General Operations > Check Entry.
b) Select Add Manual if you've previously issued a manual check OR Add if
you are creating a computer generated check.
c) Pay Invoice.
d) Select the invoice entered in step 1.
e) Print and Post

At material Receipt
3. Enter a packing slip.
a) Go to SR > General Operations > Receipt Entry.
b) Add a purchase order receipt.

4. Enter the invoice for the total dollar amount of the purchase order
receipt.
a) Go to AP > General Operations > Invoice Entry.
b) Add Receipt Billing Line.
c) Add Misc Charge to the Invoice Header.
d) Select Prepayment Charges. If a Prepayment Miscellaneous Charge has not
been set up, add this Miscellaneous Charge using the same 'Prepaid Expense'
GL number used in the GL Distribution field on the check entry in step 1..
e) Enter the amount of the prepayment as a negative (ex: -100.00) and click
Close. The GL Distribution box will reflect the same GL number used when
creating the prepayment check. Note: THE INVOICE WILL NOT POST IF THE
TOTAL AMOUNT OF THE INVOICE IS ZERO.
f) Post.

5. Process a check for the invoice.
a) Go to AP > General Operations > Check Entry.
b) Select Invoices.
c) Print and Post


The following transactions are created from the above steps.

1. Prepayment invoice DEBIT Prepaid Expense CREDIT
Payables Account
2. Invoice payment DEBIT Payables Account
CREDIT Cash Account
3. Receipt entry DEBIT Expense Account
CREDIT Clearing Account
4. Invoice entry-receipt DEBIT Clearing Account
CREDIT Payables Account
Invoice entry-misc chg DEBIT Payables Account CREDIT
Prepaid Expense
5. Invoice Paid DEBIT Payables Account
CREDIT Cash Account

(system) #2
Howdy Mike,
We came across this same problem some time ago, here's what we do.
Line 1 on the P.O. would be for 90K, but do not receive this line,leave it
open until the final invoice. When you receive your first invoice, 15K (or
whatever) create line 2 on the P.O. and make that line amount 15K and
receive that line only. Continue to do this until you get the final invoice.
The final invoice will then become line 1, change line 1 from 90K to 25K.
Maybe another way, but this is what we do. HTH

Regards,
Mike Eide
Clarke's Sheet Metal, Inc


>From: MLowe@...
>Reply-To: vantage@egroups.com
>To: <vantage@egroups.com>
>Subject: [Vantage] AP Advance Billings
>Date: Mon, 14 Aug 2000 14:29:20 -0700
>
>I was hoping to get some input from the group as to how you are handling
>the
>following situation:
>
>In the manufacture of a part, a "material" is required that is billed to us
>in
>increments. For example, a material line is set up to be purchased to the
>job.
>A PO is created for the material part with a unit cost of 90K. Our vendor
>sends
>us the first of 2 advance billing invoices. We input the first invoice in
>the
>AP module as an Advance Billing against the PO line. Three weeks pass and
>we
>input the second invoice as another Advance Billing against the PO line.
>Finally, after another 3 weeks, the part arrives. We receive the part to
>the
>job material line. When you check the job costs you see that the part has
>been
>costed to the job at the PO value of 90K. So far so good. However, the
>final
>invoice arrives and we do a receipt billing. The system pulls the 90K but
>the
>AP clerk changes the unit cost to 30K to reflect the actual invoice since
>this
>is the 3rd of three. The Invoice is posted.
>
>Now, when you check the job costs you see that an invoice adjustment has
>been
>made to the job of -60K. In essence, the system costs the part at the
>final
>invoice disregarding all of the prior advance billings.
>
>Am I missing something here (this is quite possible!)? I would be curious
>to
>see how other users are handling this scenario.
>
>Thanks in advance for your feedback!
>
>Mike Lowe
>Corporate I.S. Manager
>Connor Manufacturing Services
>MLowe@...
>(909) 273-1282
>

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