Creating a Draft Invoice

This topic describes how to create a Draft Invoice manually.

Smart Invoice Capture: See how to edit and submit automatically generated Draft Invoices: Editing an Automatically Generated Draft Invoice.
Permissions

Creating a Draft Invoice only appears if Edit Draft Invoices is included in your permissions.

Add a New Draft Invoice

  1. Create a new Draft Invoice from the Top Menu bar.

    1. Select Create a new document from the Top Menu bar.

    2. Select Draft Invoice from the menu (see Creating a New Document).

  2. Or, create a new Draft Invoice from the Draft Invoices page:

    1. Select OCRDashboard Draft Invoices on the Side Menu. See Side Menu.

    2. Select CreateNewDraftInvoiceBtn Create New on the Menu Bar of the Draft Invoice page.

The Draft Invoices > New Draft Invoice page displays.
NewDraftInvoiceForm252

Capture and Save the Draft Invoice

  1. Enter the Invoice Header fields.

    Header Details
    Document Name

    Enter the file name of the original invoice.

    Description

    Optionally enter a description.

    Company

    Select a Company from the drop-down list.

    Site

    Select from the available sites.

    Note: Only your assigned sites that also belong to the selected Company are available for selection.

    Debit Memo

    If this is a Debit Memo, select the Debit Memo check box.

    Vendor

    Select the Vendor who sent the Invoice.

    Verified Tag

    If Smart Risk Analysis is used, a verification tag is displayed above the Vendor:

    • Unverified

    • Self-verified

    • Verified

    See Verified Vendors

    Only Vendors belonging to your assigned Vendor Groups are available for selection.
    Tax ID (ABN/ACN)

    The Tax ID (ABN/ACN) is verified against the Vendor’s Tax ID (ABN/ACN), if this is available on the Vendor maintenance page. If there is no match, a Warning is raised.

    Invoice Number

    The Invoice Number as it appears on the original Invoice.

    Invoice Amount

    The Total Due, as it appears on the original Invoice.

    Invoice Date

    The Date on the original Invoice. This could be an Invoice Date, or a Billing Date.

    Note: There is no Invoice Date if you select the Debit Memo check box.

    Due Date

    Enter a Due Date. This could appear as the Due Date, or the Ship Date/ Shipment Date on the original Invoice.

    Note: There is no Due Date if you select the Debit Memo check box.

    Received Date

    Enter the Received Date, if known. This could also appear as the Date on the original Invoice.

    Apply Date

    Enter the Apply Date, or select System Default. The Apply Date defines the date used to book journals created from the transactions, in Kinetic.

    System Default for Apply Date
    Apply Date

    This enters the current date into Apply Date.

    For AP Invoices, the date at final approval will be recorded against the invoice.

    PO Number

    Enter the PO Number as it appears on the original Invoice.

    Packing Slip

    Enter the Packing Slip number if it appears on the original Invoice.

    If you are editing an automatically generated draft invoice: For Vendors that have Never Use a PO as their Automation Matching Requirements (see Matching Requirements), the PO Number and Packing Slip do not appear on the header.

    Terms Code

    The Vendor Terms populates this field when you select the Vendor. Check that this is the same as the Terms that appears on the original Invoice.

    Tax Liability

    The Vendor Tax Liability populates this field when you select the Vendor.

    Currency

    The Vendor Currency populates this field when you select the Vendor. If possible, check that this is the same as the Currency on the original Invoice.

    Custom Data fields

    Custom fields will display on the Draft Invoice page, provided the company setting AP Invoice Header’s Custom Data has a value. The custom field values are transferred from the Draft Invoice to the AP Invoice.

    Example of Custom Data Fields
    Reference No

    Optionally enter a reference number for the invoice.

    Remark

    Optionally add a remark for the invoice.

  1. Select OK or Apply to save the changes.

  2. Optionally set Document Defaults. See Setting Document Defaults.

  1. Add one or more invoice Line Items.

    1. For each new line, select Add line at the bottom of the page, under the Line Items section header.

      AddLineToDraftInvoice
      The Line Item section expands to display the Item fields.
      CaptureLineItemOnDraftInvoice252

    2. Capture the Line Item fields, referring to the lines on the original Invoice.

    Item

    Select an item from the Item drop-down list, or click the SearchBoxBtn Search button to open the Catalogue Search pop-up.
    Description

    The item’s Description from the Catalogue is displayed here. To edit the Description, click on the DraftInvEditBtn edit button to the left of the edit box and update the contents of the pop-up, or edit a short Description directly in the edit box.
    UOM

    This defaults to the item’s Standard UOM. To update the UOM, clear the edit box, then select from the drop-down list.
    Quantity

    This defaults to 1. Update in the edit box.
    Unit Cost

    This defaults to 0.00. Update in the edit box.
    Extended Cost

    This updates to the Unit Cost multiplied by the Quantity when the line is saved. Alternatively, update the Extended Cost. The Unit Cost updates to the Extended Cost divided by the Quantity.
    Misc. Charge

    Enter a Misc. Charge if applicable.
    Total

    This updates the Extended Cost plus the Misc. Charge when the line is saved.
    PO #

    For Receipt Lines (R), you need to enter a PO#.
    RIcon or MIcon

    You can switch the line type between Misc and Receipt, depending on what is permissible for this document. See Receipt Lines and Miscellaneous Lines - Restrictions.
    Tax Category

    If you have a Document Default Tax Category, then this is selected, otherwise the System Default Tax Category is selected.

    If you select a Tax Category, this clears the System Default check box.

    System Default for Tax Category
    Tax Category

    For Catalogue items, the Tax Category defaults to the first available of:

    1. The Tax Category for the Catalogue item for the Location matching the Receiving Location Code

    2. The Tax Category for the Catalogue item

    3. The Tax Category for the Catalogue’s Category

    4. The Default Product Tax Category Code defined in Company Settings.

    For items not in the Catalogue, the Tax Category defaults to the Default Product Tax Category Code defined in Company Settings.
    HS Commodity Code

    Overwrite the HS Commodity Code, if necessary. This field is required if the Company General Setting for HS Commodity Code Required setting is Yes.
    Location

    Select a Location. This field applies to Miscellaneous Lines (M) only.

    If the header has a Site, then only Locations belonging to this site can be selected. If there is a discrepancy between Site and Location, then a warning is raised.
    Category

    Select a Category. This field applies to Miscellaneous Lines (M) only.

  1. Select OK or Apply to save the changes.

  1. Apply updates to the line, as necessary:

    • To Remove the line, click the RemoveButton at the end of the line.

    • To change a Miscellaneous Line to a Receipt line, click the MIcon (M) icon at the end of the line, then click To Receipt Line.

      MiscLineToReceiptLine

    • To change a Receipt Line to a Miscellaneous Line, click the RIcon (R) icon at the end of the line, then click To Miscellaneous Line.

      ReceiptLineToMiscLine

      Receipt Lines and Miscellaneous Lines - Restrictions

      A line can be a Miscellaneous Line or a Receipt Line, except:

      • If the Vendor has Require PO Receipts as their Manual Matching Requirements (see Matching Requirements), only Receipt Line is available, unless the logged-in user has the permission 'Override Manual Invoice Requirements to allow Misc. Invoice Lines'.

      • If the document is a Debit Memo, only Miscellaneous Line is available.

    • To view validation errors on the line, click on the Err: [line error count] label at the end of the line.

      ClickOnErrorLabel

      The error(s) appear in a pop-up:

      ErrorPopUp

    • To view warnings on the line, click on the Warn: [line warning count] label at the end of the line.

      ClickOnWarningLabel

      The warning(s) appear in a pop-up:

      + WarningPopUp

    • To accept warnings on the line, click the three dots, then click Accept line warnings on the menu.

      AcceptWarnings

      The warning label turns gray.

      GreyedWarning

    • To reset the line warnings, click the three dots again, then click Reset line validation accepted warnings. ResetLineValidationWarnings

    The warning label reverts to amber.

  2. Update the line, as necessary, to address any warnings or errors. You can also accept line warnings (as described above).

    Note that you can submit a draft invoice with warnings. However, you will need to accept all warnings to continue.

  1. Attend to any warnings or errors on the Invoice Header.

    Errors/warnings shown on the Invoice Header can relate to the Invoice Header or any of the Invoice Lines. Errors/warnings relating to line items are listed (in line number order) below errors/warnings relating to the Invoice Header and are prefixed by the line number.

    View example of errors
    HeaderErrors
    View example of warnings
    HeaderWarnings

    As with the warnings on the invoice lines, you can dismiss warnings on the Invoice Header. Options are:

    • Accept all document warnings (This includes header warnings and line warnings).

    • Accept header warnings (Only accept header warnings).

    • Accept all line-level warnings (Accept all line-level warnings, but not the header warnings).

      Accepting warnings on the Invoice Header
      HeaderAcceptWarnings

      After accepting warnings on the Invoice Header, you can reset warnings at various levels (the available options depend on what was accepted previously). The full set of options is:

    • Reset all document accepted warnings

    • Reset header accepted warnings

    • Reset all line-level accepted warnings

    • Reset all line-level accepted validation warnings

    Resetting warnings on the Invoice Header
    HeaderResetWarnings

Setting Document Defaults

  • To set default values in new line items, set and select default values in the Document Defaults section before adding the new line items.

    OR

  • To update values in existing line items, set and select default values in the Document Defaults section, select the line items to update, then click Apply selected fields to selected Lines on the bottom left of the Document Defaults section.

To select default values in the Document Defaults section:

  1. Click on Document Defaults section header bar, to expand the Document Defaults section.

    Some of the defaults already have values.

    Document Defaults
    DraftInvoiceDefaults252

  2. For each default setting, select a value, then select the check box alongside its label. If the check box is not selected, the default value will not be applied to the corresponding field on the new or selected lines.

    Tip: Click the Toggle field selections button at the bottom of this section, to select/clear the selected fields in Document Defaults.

    ToggleFieldSelections
    Default Settings
    Location Code

    Select a Location Code.

    Category

    Select a Category.

    UOM

    Select a UOM.

    Tax Category

    Select a Tax Category.

    Line Type

    Select a line type from the drop-down list.

    Available options depend on what is allowed: Miscellaneous Line or Receipt Line or both of these.

    See Receipt Lines and Miscellaneous Lines - Restrictions.

  3. To close the Document Defaults section, click on the section header bar again.