Our users report the following: In IFS, when an advance payment is managed via the PO by inserting the advance payment, and the PO is still in the draft / unauthorized status, the advance payment can simply be processed by AP.
Why does IFS allow payment against a not authorized PO? Are we doing something wrong?
Who can advice?
Hi. I found the following information -
In IFS Cloud / IFS Applications, this behavior is standard out of the box and does not mean you are using the system incorrectly. Understanding why this happens and how to enforce strict controls will help prevent unauthorized advance payments.
The core reason is the decoupling of Procurement Controls from Financial Payment Controls:
Module Separation: Purchase Order Approval is governed by Procurement Authorization (Purchase Order header status: Planned, Released, Authorized). Advance Payment processing in Accounts Payable is governed by Financial/Invoice Authorization (AP Ledger status, Payment Holds, and Payment Authorizers).
AP Payment Logic: When AP runs a Payment Proposal, the system filters transactions based on invoice attributes (e.g., Due Date, Payment Authorizer, On Hold status). By default, payment routines do not automatically query the operational rowstate of the connected Purchase Order to block the payment unless a financial hold or rule is placed on the advance invoice.
To ensure advance invoices are never paid prior to PO authorization, you can implement one or a combination of the following solutions:
How it works: Ensure Supplier Advance Invoices (SUPIA) require an Invoice Payment Authorizer.
Process: Configure AP so advance invoices remain in an Unauthorized state until the authorizer (or buyer) confirms the PO is approved.
Control: When running Create Payment Proposal, check the option Include Authorized Invoices Only. Unauthorized advance invoices will be excluded automatically.
How it works: Whenever AP enters or receives an advance invoice against a PO, AP checks the PO status. If the PO is still in Draft / Planned / Released (unauthorized):
AP uses the Set On Hold command on the Supplier Invoice screen and selects a hold reason (e.g., PO_NOT_APPROVED).
Once the PO is authorized, the hold is manually removed.
Control: Payment Proposals automatically exclude invoices placed on hold.
How it works: Establish a strict internal policy that AP must not post or release advance invoices until the Purchase Order has reached the Authorized state in IFS.
Verification: AP clerks can check the PO status directly from the matching dialog before saving or posting the advance invoice.
If you want strict system enforcement without relying on manual checks:
Create a Custom Event on the Supplier Invoice entity (MAN_SUPP_INVOICE_TAB / INVOICE_TAB).
Trigger: Upon insertion or posting of an Advance Invoice where a Purchase Order reference exists (PO_REF_NUMBER).
Condition / Logic:
Check the Purchase Order status: Purchase_Order_API.Get_Objstate(po_ref_number).
If the status is NOT Authorized:
Option A (Hard Stop): Raise an error preventing the user from saving or posting the advance invoice: "Cannot post advance invoice: Connected Purchase Order [PO_NO] is not authorized."
Option B (Soft Stop): Automatically place the invoice on Payment Hold with a reason code until the PO state changes to Authorized.
I hope this helps! Please advise if you have any questons. Thanks! Jane
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