Job Costing and Invoicing
Reconciling Purchase Invoices
When you cost jobs you enter details of any accruals (expected costs) for which you are expecting to be invoiced.
When you receive an invoice from your supplier you can record the details of that invoice in Sequoia and ensure that what you are being charged matches your expectations. This allows you to identify any discrepancies and sort out any problems with your supplier before you reconcile (approve) the invoice.
It is not until you reconcile a purchase invoice that any associated costs get transferred to your accounting system.
Creating a Purchase Invoice Record
To record the details of an invoice you have received, go to the Supplier Purchase Invoices folder in the job costing module (see Viewing job costing information for details of how to do this). Right click anywhere on the list and select New from the menu.
This will display the New Supplier Purchase Invoice dialog (as shown below).
The list below details each of the controls on this dialog and what you need to enter.
|Supplier||You must enter the shortcode or name of the supplier who has invoiced you.
If you only enter a partial shortcode or name then the system will try to figure out which supplier you mean. If it can’t then a lookup dialog will appear, displaying all the records that include what you typed.
|Invoice Number||Enter the Invoice Number.|
|Invoice Date||Enter the invoice date shown on the purchase invoice.|
|Account Code||This will default to the details for the CRM record for the Supplier.|
|Currency||Enter the code for the currency in which the invoice has been sent.
To access a list of currency codes, enter a question mark in this box.
|Exchange Rate||You must enter the exchange rate that applies to the invoice.
If there is a default exchange rate record for this currency code and that record has an exchange buying rate valid for this date then that buying rate will automatically be filled in here.
|Net Amount||You must enter the total net amount of the invoice.|
|VAT||You must enter the total VAT included on the invoice. Enter 0.00 if there is no VAT included.|
|Account Ref||An optional reference which, if specified, will be included when data is transferred to your Accounting system.|
Once you have completed the information correctly as above, click the Create button.
The Supplier Purchase Invoice form will load (as shown below).
The reconciliation list will show details of any outstanding accruals for this supplier where the accrual was recorded with the same currency code.
Accruals that appear on jobs but which are apportioned from a consolidation will not appear on the list. However, the accrual that was recorded against the consolidation will appear here.
Reconciling a Purchase Invoice
To reconcile the invoice, you simply tick the ‘Include’ box for each accrual that appears on the invoice. The actual cost currency, amount, VAT code, Actual amount (in GBP) and VAT amount will default to the accrual values. If the amount you have been charged differs from the amount you expected to be charged but you are happy with the difference, you can amend the amount.
The charges summary panel at the top of the form summarises what you have included against what has been invoiced. If there is a difference then the border around what the difference is will be red.
Marking the Invoice as Reconciled
Once you have reconciled the invoice (the costs you have included match the total amount that has been invoiced) then you can mark the invoice as reconciled. You do this by ticking the box labelled ‘Reconciliation Complete’ – to the left of the form just above the Reconciliation list.
It is not until you mark the purchase invoice as reconciled that any associated costs get transferred to your accounting system.
If you haven’t finished reconciling the invoice you can still save the details you have recorded so far and come back later to finish the process.
Saving the Purchase Invoice Details
To save the details of this purchase invoice, click Save & Close on the toolbar at the top of the form.
If you have marked the invoice as reconciled then:
- The status of all the accruals included on it is set to Purchase Invoice Reconciled.
- An Actual cost record will be created for each of these accruals and the status of these Actual Cost records is also set to Purchase Invoice Reconciled.
- The status of the Purchase Invoice record is set to Purchase Invoice Reconciled.
If you have marked the invoice as reconciled but do not have the authority to do this then:
- The status of all the accruals included on it is set to Awaiting Purchase Invoice Reconciliation authorisation.
- An Actual cost record will be created for each of these accruals and the status of all of these Actual Cost records are set to Allocated to Purchase Invoice.
- The status of the Purchase Invoice record is set to Awaiting Purchase Invoice Reconciliation authorisation.
If you are saving the Purchase Invoice record without having marked it as reconciled then:
- The status of all the accruals included on it is set to Allocated to Purchase Invoice.
- An Actual cost record will be created for each of these accruals and the status of these Actual Cost records are also set to Allocated to Purchase Invoice.
- The status of the Purchase Invoice record is set to Created.
IATA CASS Invoices
The IATA CASS payment system results in purchase invoices for all participating airlines to be issued by one party (CASS).
Sequoia can process CASS invoices (where the issuer of the invoice (CASS) is not the same as the supplier you have entered against a charge line (e.g. British Airways).
To enable this to happen you first must specify a Supplier for CASS Invoices in the configuration for Job Costing in Sequoia. You only need to do this once, when you configure the system.
Secondly you need to configure the Sequoia CRM record, for each airline from whom you will be getting a CASS invoice, that they Invoice via CASS. See Adding Accounting Information to CRM Records for details of how to do this. Again, you only need to do this once, when you configure the system.
When you then create a new purchase invoice and specify the supplier as the one configured as the Supplier for CASS invoices, all outstanding accruals from all suppliers (airlines) that you have indicated as invoices via CASS will appear on the list.