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Hi All,

 

Currently there is a process that is consuming too much time and it is not being possible to automate it in IFS.

When a purchase order is made, sometimes (regularly) it is necessary to send money to the supplier, i.e. to enter an advance payment into the system. The problem starts at this stage, there is no document from the supplier (e.g. no supplier advance invoice).

Is there a way to identify in the Purchase Order the need to pay a certain amount?

Is there a way to automatically include this payment requirement in the Supplier Payment Proposal? Manually it is possible (add manually the payment at proposal), but customer wants it to be an automatic process.

Then, when the supplier invoice is introduced, it will be necessary to match this payment with the Manual Supplier Invoice.
 

Business Impact:
A huge impact, the supplier payment proposal is edited several times. This is a situation that occurs many times during the month and is time consuming for the key users. In addition, as it is a very manual process, errors may occur.

Hi, 

It really depends on when the ownership transfer takes place.    If we need to pay for the PO and take ownership at shipment, then consider using a special arrival location (for example a container on a ship). The parts would arrive at that location and available for AP payment. The inventory would not be nettable (usable) until the products arrive at your facility. 

If you really pay a deposit for the goods, then the PO - payment schedule process works for this. Many of my clients use that process.  They key points of the process is we create a payment schedule. A step is approved, AP processes an advanced invoice for that payment schedule step. The advanced invoice is paid. Later the goods are received and a supplier invoice is matched with both the goods received and the previously paid advanced invoice. The previously paid advanced invoice is applied to the invoice resulting in a paid or partially paid invoice.   IFS manages much of this.  

IFS Help has the steps / process.  for the billing schedule. This is not the same as the staged billing functionality.  See the help from this screen. 

Best regards, 

Thomas

Hi @Thomas Peterson,

“A step is approved, AP processes an advanced invoice for that payment schedule step.”  > Does the system identify the need to make an advance invoice?  How does the user know that has to register a supplier advance invoice?

Another question that came up is, we are assuming that the supplier sends that advanced invoice for us to register. What if it doesn't send the invoice? We cannot register an advance supplier invoice.

 

Thanks!

Hi,

Advance invoice process assumes that supplier is sending document for payment request - advance invoice or proforma. This enables us to follow approval for payment process connecting invoice to PO and payment schedule. 

If supplier does not send any document, as per my understanding you should create internal process documenting payment need - for fraud protection - and registering dummy advance invoice with proper documentation connected can be part of this process. I do not know any function ion IFS allowing to create “on account” payment proposal item from PO payment schedule - and I think Payment Proposal item does not have direct link to PO at all..

 

 

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