Hello Guys,

I need help regarding payment of Account Payable. I've already matched the invoice with Purchase Order, but I haven't approved it, and then I made payment on it, it can be done. My questions is, then..what is the function of approval here?is it only to reverse the journal so that the journal will be correct?

Appreciate your help on thiss...Many thanks in advance!!

Cheers,
Shirley

This is a setup on the CMG parameter where you can define if unapproved invoices can be paid or not.

Regards - Kai :)

Hai Kai,

Thanks for your prompt response :p . I've already checked in CMG Parameter, in my setting I don't tick the 'Select Non Approved Invoice for Payment' Payment Options, but I can pay without have to approve first. Is there any other setting perhaps?And another thing I found is, even if the Invoice Status is registered (NOT matched yet), we can also do payment of it. Woww...where is the control systemwise then?

Many thanks in advance!

Cheers,
Shirley

Hi Shirley,

the 'Select Non Approved Invoice for Payment' button is the only way unapproved invoices can be paid - otherwise you have got a bug. Normaly if the button is set to "NO" then it is of course possible to make payments on registered invoices - which you cannot delete anymore.

Regards - Jochen

:)

Hai Kai,

Thanks for your prompt response . I've already checked in CMG Parameter, in my setting I don't tick the 'Select Non Approved Invoice for Payment' Payment Options, but I can pay without have to approve first. Is there any other setting perhaps?And another thing I found is, even if the Invoice Status is registered (NOT matched yet), we can also do payment of it. Woww...where is the control systemwise then?

Many thanks in advance!

Cheers,
Shirley

Hi Shirley and Kai,

We have Cash management being used extensively at our site. The supplier payments are made only through the cash management module. In such a case if the CMG parameter option "Select Non-approved invoices for payment" is set to "No" the payment through CMG module is not possible for Supplier invoices that are not Matched and approved (only for integrated type of invoices and not manual invoices).

One of the reasons why Baan has given an option to pay invoices even if they are not matched and approved is because if an invoice is received and not processed promptly the supplier need not suffer for this lapse on the side of the customer, and payment could be processed. In our case even the Purchase inspection is also implemented. In such cases match & approval is not possible till the goods are inspected although they are received early. In such cases the supplier need not have to wait till the inspection is completed since the delay in inspection is our internal problem. The supplier need not have to wait till we inspect; if we are not prompt in inspecting the goods. In such cases the payment as per schedule has to be processed and Supplier need not have to bear the consequences of our internal delay. I found that in may case there are delays due to our problems and Supplier is not resposible for this.

However, in CMG unallocated or stand-alone payments could be done, but then authorisation for such payments can also be controlled from CMG module.

However, annually we are responsible to the auditors to give a break-up of all Purchase orders that are pending for matching which should tally with the Invoices to be received GL account in finance. If any old Purchase orders are found, it will be looked into.

I hope i have conveyed my message across.....These could be some of the reasons according to my experience with Baan finance.

Another issue that we came across is that even though the parameters are set to not allow payment of unapproved invoices, it only works if the payment is made as part of the invoice selection process. If you add an invoice to the payment advice manually, it will allow payment.

Hi Tony,

That's correct :) . Is there any way we can prevent unapproved invoices to be paid manually :confused: ?

Cheers,
Shirley

Did you try setting a blocking code?
Regards, Juli

Hi Juli,

I've tried blocking code, but it can prevent manual payment(only warning twice, not blocked) only if blocking code is attached to the invoice. And the condition is, not all invoices attached to a blocking code. Am I correct? :confused:

Thanks anyway for your response Juli :)

Cheers,
Shirley

You could set the system up with a default blocking code. This will be applied automatically to all entered invoices and Baan will offer to remove the blocking code when you approve the invoice. As long as you restrict access to the sessions where you manually remove the blocking code (maintain open entries), this is a good way to prevent invoices from being paid when they haven't been approved yet and still maintain some flexibility.

Hi,

How about if we want to add 'real' blocking code since there is only 1 blocking code field. :confused:

Thanks for you response.

Cheers,
Shirley

Yes, there is only one blocking code field. What I suggested is to get Baan to fill it automatically with a default value for new invoices rather than leave it blank. That doesn't stop you from changing the default in specific cases, or declining Baan's offer to remove the blocking code when you approve the invoice. But it does help in stopping payment of unapproved invoices.

Hi all,
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need help regarding payment of Account Payable. I've already matched the invoice with Purchase Order, but I haven't approved it, and then I made payment on it, it can be done. My questions is, then..what is the function of approval here?is it only to reverse the journal so that the journal will be correct?------------------------------------------------------------------------

The first part is aswered by Awondergem (Henry is that you?)

The second part about what the apporval is about: It is not only there to make a reverse posting on the interim accounts. Each difference on both quantity (approved quality)or price logistically compared to the invoice has to be posted as well. This can be don via finance (creating a manual posting on GL-acc) of automatically via integrations. The latter creates not only a financial posting from logistics to finance, but also updates the pricefields in the ITEM-file 'last purchase price' and average purchase price. Whese prices can be setup as input for every new purchaseorder made in distribution later.

Hope this completes your picture.

Michel