In addition to managing your PO Payments manually, you can also manage payments through Vendor Invoices. A vendor invoice is a document that lists the amounts owed to the supplier by the buyer. You can use the vendor invoices workflow to track invoices and payments on the vendor level.
You can use the vendor invoices workflow to track invoices and payments on the vendor level as well as reconcile bills against received inventory.
Configure Vendor Invoices Workflow
To enable Vendor Invoices Workflow go to Client Settings > General Client Settings > Enable Vendor Invoices Workflow.
- If enabled, the Invoices, Payments, and Receive Sessions tabs will display under Purchasing > Vendors > Manage Vendors > Toolbox.
- If enabled, the workflow should show the first found invoice from the vendor’s Invoices toolbox that is related to a PO receiving session.
- If disabled and EnableMultipleInvoicesForPurchaseOrders is enabled, then the workflow should show the first invoice in Purchase_Invoice.
- If disabled and EnableMultipleInvoicesForPurchaseOrders is disabled, then it should show the POVendorInvoiceNumber.
Learn more about each tab related to the Vendor Invoices Workflow below. To access these tabs, go to Purchasing > Vendors > Manage Vendors > Toolbox.
The Invoices tab shows all PO invoices related to that vendor, and you can manage all PO payments from the tab.
You can also perform the following actions with the invoices:
- Add Payment – Record a payment made against the invoice.
- Delete – Delete a payment from the invoice.
- Mark Quickbooks Unexported – Edit an exported PO in Quickbooks to make it unexported.
- Mark Quickbooks Exported – Edit an unexported PO in Quickbooks to make it exported.
To view vendor invoice information on individual PO, go to Purchasing > Manage POs > Select a PO > Toolbox > Billing & Payments.
Here you can also add an invoice individually and upload invoices in bulk.
The Payments tab shows any payments made to the vendor you have opened.
To view payments information on individual PO, go to Purchasing > Manage POs > Select a PO > Toolbox > Billing & Payments.
Here you can also add and delete a payment for the vendor.
The Receive Sessions tab shows separate receivings on POs for the vendor you have open.
To view receiving information on an individual PO, go to Purchasing > Manage POs > Select a PO > Toolbox > Receiving.
Here you can also print sessions and delete receivings.
Vendor Invoice Reconciliation
You can check if there’s a difference between the vendor’s invoices and the received inventory. This can be done from the PO.
- Navigate to the Actions menu and select Manage Invoices.
- Open an invoice and click Edit.
- Click the + icon in the Existing Sessions panel.
- Select the matching sessions and click Add.
If there is a difference between what was paid for and what was received, it will be displayed in the Invoice Summary panel.
- Click Save.
- The sessions’ total cost will appear in the Grand Total field. If it equals the Paid Amount and there are no differences, the invoice can be considered reconciled.
Understanding vendor invoices
A vendor invoice is a document that lists the amounts owed to the supplier by the buyer. In Sellercloud, you can easily manage and view various vendor invoices from the Invoices toolbox on the vendor’s details page.
In Client Settings, Enable Vendor Invoices Workflow functions in a few different ways:
- If enabled, Invoices, Payments, and Receive Sessions tabs will display
- If enabled, it should show the first found invoice from the vendor’s Invoices toolbox that is related to a PO receiving session
- If disabled and EnableMultipleInvoicesForPurchaseOrders is enabled, then it should show the first invoice in Purchase_Invoice
- If disabled and EnableMultipleInvoicesForPurchaseOrders is disabled, then it should show the PO.VendorInvoiceNumber
Enabling this Client Setting will populate the Invoice Number column on the Manage Purchase Orders page.
Vendor invoice reconciliation lets you reconcile vendor invoices (bills) against received inventory.
After creating a vendor invoice for reconciliation, you can record payments made against the invoice. Even if you are not paying the invoice in full, you can track your applied payments as you pay off the balance. The payments can be recorded even before receiving the PO, as it’s common for retailers to prepay purchase orders.
- Navigate Company Settings Toolbox > Vendors > select Vendor > Payments. (You can also get to this page by using the action Make Payment on a PO.
- Press New Payment.
- Enter the payment info/method and save.
- The invoice will display in the grid with the invoice total and the amount already paid.
- In the row of the invoice you are now paying, enter the payment amount in the “Apply Payment” box. (The system will not allow overpayments.)
- If multiple invoices are being paid with a single payment, enter the payment amount per invoice on their respective rows.
- Press Save Payments.
- Vendor invoices that are fully paid will be removed from the grid.
- The amount paid will display on the Invoice Detail page. click on the paid amount to see the payment record.
- Payment will also display on the main payments page detailing the payments and the invoices to which it was applied.
Vendor Invoice Reconciliation
Vendors often invoice a customer for multiple POs, but purchase orders may only be partially received (for example, the vendor did not send all ordered items and units). This makes it challenging to confirm the accuracy of billing charges against the PO totals in SellerCloud.
Here’s an example. Suppose a customer only sends one PO to a vendor for a total PO cost of $3000. Two weeks later, the vendor invoices the customer. Consider the following scenarios 1 through 5:
|PO Cost = $3000||—||—|
|Invoice Charge||PO Receiving Status||Reconciliation|
|Scenario 1: $3000||Fully received||Charged at agreed upon price|
|Scenario 2: $4000||Fully received||Overcharge|
|Scenario 3: $3000||Not fully received||Possible overcharge|
|Scenario 4: $2000||Fully received||Possible undercharge|
|Scenario 5: $2000||Not fully received||No indication from totals|
- Invoice charge is $3000 and PO is fully received – Totals match, so the customer is charged at the agreed upon price.
- Invoice charge is $4000 and PO is fully received – Totals do not match, so there is an obvious overcharge.
- Invoice charge is $3000 and PO is not fully received – Totals indicate a possible overcharge for received items.
- Invoice charge is $2000 and PO is fully received – Totals indicate a possible undercharge for received items.
- Invoice charge is $2000 and PO is not fully received – No indication from the total about the accuracy of the billing charges.
Reconciliation becomes even more complex if the invoice is for multiple POs that are partially received.
How does the vendor reconciliation tool help?
The tool addresses accuracy by matching the bill against the receiving sessions of a single or multiple POs.
Each time items/units on a PO are received, a receiving session is saved. The session saves the cost of the items received as the Receiving Session Cost. The invoice can then be reconciled against the total from the indicated receiving sessions, regardless of totals and the received status of the POs.
Consider the following scenarios with the single PO cost of $3000:
|PO Cost = $3000||—||—|
|Invoice Charge||Receiving Sessions Totals||Reconciliation|
|$2000||$1000 + $1000||Charged as agreed upon price|
|$2000||$1000 + $500||Possible overcharge|
While this example is for a single PO, receiving sessions can also be grabbed from multiple POs.
Reconciling vendor invoices with POs
- Select the Client Setting Enable vendor invoices workflow.
- Click Company Settings > Toolbox > Vendors > select Vendor > Invoices.
- Click New Invoice. Use the data from the vendor bill to enter Invoice Date, Invoice Number, and Invoice Amount. You can also attach the actual invoice from your PC by clicking Choose File.
- Click Save Invoice.
- Click Add Receive Session. A window appears to show receiving sessions from the vendor, with session IDs, date/time received, PO number, quantity received, and session cost. You can filter by PO number or Product ID.
- Select the matching sessions and click Add Selected Sessions.
- The session will be added to the Existing Sessions grid. The sessions’ total cost will appear in the Received Amount field. If it matches the invoice amount, the invoice can be considered reconciled.
- After a receiving session is added, it will be removed from the available sessions to select for a new invoice.
Payments against vendor invoices can also be recorded. Payments can be prepaid or recorded after the receiving sessions are added. Read more here.
View receiving sessions per product/qty
The default workflow above shows totals from a receiving session, but you can break that down further to enter an exact amount of units received against a particular invoice:
- Follow the steps 1-5 above. The grid will now display the receiving sessions with the product quantity breakdown. Each product will have its own receiving ID.
- The Qty for Invoice will default to the received quantity; edit the quantity if necessary.
- Select the Receiving IDs at the product level and click Add Sessions. If the full Received qty is not invoiced, the receiving session will remain in the grid.
- Continue with step 8 above.