Setting up the A/P Direct Order Billing functionality

For accounting purposes, normally the accounting (in DC1 Financials) is done according to the Document type table definition, however for DBD accounting it is done according to DC1 Distribution, meaning a dedicated transaction type determines the accounting. For a DBD document, it is the transaction type 813 (price difference invoices) which is used to create the “contra-booking”.

Min % of invoice

Specify the minimum threshold as a percent of the net settlements (total PO) in A/P direct order entry. The lesser of this and Min amount (if entered) will be used to determine the minimum threshold for creating A/P debits. If entered, the percentage must be between 1 and 100.

To disable A/P debit note generation enter 100. This means that you will bear any discrepancies and not charge anything back to the supplier.

Min amount

Specify the minimum threshold as a flat amount in A/P direct order entry. The lesser of this and Min % of invoice (if entered) will be used to determine the minimum threshold for creating A/P debits.

Note: Each time the fictitious item is used, the system checks if the concerned supplier is defined for the item in the item’s supplier information panel and if not then it is automatically added.

Create a unique template to be used for your fictitious items that will book fees, or use an existing. The template you add, or the existing template you use must be an active maintenance template (i.e. the Maint/enquiry templ field must be set to YES on the Work with item templates panel).

The following default values must be completed as follows:

Add the applicable fee types, and complete the following fields:

Fee type

Enter the name of the fee type.

Description

Enter the description of the fee type.

Fee action type

Indicate how the fee type will function in A/P direct order entry.

Type	Description	Impact
1	Create or attach to PO & SO line	If you do not have a fictitious item (e.g., freight) already on the purchase order line it will create a purchase order line with fictitious item freight and add that same line on the SO.
2	Create or attach to PO line only	If you do not have a fictitious item (e.g., freight) already on the purchase order line it will create a purchase order line with fictitious item freight. It will not flow through to the sales order.
3	Allocate/Discount base adjustment only (no PO line attachment)	This one will not create a purchase order or sales order line. The system will not allow you to put a fictitious item or Item maintenance template because it is not creating a line item, it is just changing the cost basis on the sales order for pricing purposes.
4	Add line to SO only	If you do not have a fictitious item (e.g., freight) already on the purchase order line it will create a sales order line with fictitious item freight. It will not impact the PO line.

SO allocation meth

You may denote what the allocation method is on both sides, i.e. Sales order side in this field and Purchase order side (in the PO allocation meth field described below). On the Sales order side, it is used for updating the cost of goods amount for the matched direct SO lines. The system will allocate across the entire order. Hence, if you have one fee that is for the whole order (shipment), it will allocate that fee across the sales order line based on the GV, GW, NV, NW, QT, or VA total amount per line. (If you have a freight fee, you would likely use GW as the allocation method).

Enter the panel value code denoting the sales order allocation method. Valid codes are:

Code	Description
GV	Gross volume
GW	Gross weight
NV	Net volume
NW	Net weight
QT	Quantity
VA	Net value

PO allocation meth

You may denote what the allocation method is on both sides, i.e. Sales order side ((in the SO allocation meth field described above) and the Purchase order side in this field. On the Purchase order side, it is used for allocating supplier discounts and mark-ups to the PO line net settlement amounts. This is a situation where if you have a total amount of the discount as a fee, the system will update the net price on each purchase order line based on how you allocate the fee.

Enter the panel value code denoting the purchase order allocation method. Valid codes are:

Code	Description
GV	Gross volume
GW	Gross weight
NV	Net volume
NW	Net weight
QT	Quantity
VA	Net value

A/P discount base

In this field you denote, for the A/P invoice you will enter, if these fees are to be included in the basis for the discount (enter the panel value for Include), or excluded in the basis for the discount (enter the panel value for Exclude).

Example:
You offer a 2% cash discount and the cash discount is granted on net invoice amount. An invoice total net amount is 1500 SEK, and 50 SEK of that amount is freight. If you choose to include freight fee in the discount base, the 2% cash discount will be based on 1500 SEK. If you choose to exclude the freight fee in the discount base, the 2% cash discount will be based on 1450 SEK instead of 1500 SEK, i.e. the freight fee amount will be excluded from the discount base amount.

A/R discount base

In this field you denote, for the A/R invoice that will be a result of invoicing your customer, if these fees are to be included in the basis for the discount (enter the panel value for Include), or excluded in the basis for the discount (enter the panel value for Exclude).

Example:
You offer a 2% cash discount and the cash discount is granted on net invoice amount. An invoice total net amount is 2000 SEK, and 50 SEK of that amount is freight. If you choose to include freight fee in the discount base, the 2% cash discount will be based on 2000 SEK. If you choose to exclude the freight fee in the discount base, the 2% cash discount will be based on 1950 SEK instead of 2000 SEK, i.e. the freight fee amount will be excluded from the discount base amount.

Fictitious item

This field is only applicable if you set the Fee action type to 1 (Create/attach to PO & SO line) or 2 (Create/attach to PO line only) or 4 (Add line to SO only). You must attach the fictitious item used for this fee type. If at A/P invoice entry an amount is entered for this type of fee, then a PO and/or SO order line is created for the item indicated here.

Item maint template

This field is only applicable if you set the Fee action type to 1 (Create/attach to PO & SO line) or 2 (Create/attach to PO line only). It is used for the automatic creation of the item/supplier information while creating a purchase order line for the specified fictitious item if no item/supplier information exists in the Item file for the Fictitious item and A/P invoice supplier combination. Attach the item maintenance template.

Left heading text

This field denotes the text for the fee that is in the fee entry screen. Enter the fee text.

Add the fee templates, and assign a code and description. Then connect the Fee type to each template, i.e. select the Fee types option, then the Add option. On the Fee types panel, complete the following fields:

Fee type

Connect the fee type from the A/P direct order fee types file.

Sequence

Enter the sequence number denoting the order in which the fee type will be displayed on the A/P invoice direct order, Fees and discounts panel.

The remaining fields are retrieved from the A/P direct order fee types file for the fee type that is connected.