Background: AR Invoice Register
Use the AR Invoice Register (RR) program to select confirmed shipments to invoice and print the AR Invoice Register, which creates AR invoices, updates commissions, sales statistics, and the general ledger. See Road Map for work flow.
This topic has these subtopics:
Batch Selection
Batch selection allows you to continue to run the Sales Order Maintenance (OE) and Sales Shipment Confirmation (OC) or Secured Confirmation (SOC) programs while the AR Invoice Register performs updates.
To include all eligible shipments that have been confirmed since you last ran the register, click All shipments. If you click Shipments, you can select specific order numbers and the corresponding shipment numbers for the confirmed shipments you want to process. You may want to first click All shipments, then click Shipments, and click Sel to remove the check from individual shipments that you are not ready to process. You can also click List to select from a list of orders that are confirmed or in picking.
Invoices
Numbers
The Separate invoice numbering? option in the System Options Maintenance (XM) program (Accounts Receivable Options) determines whether the program assigns the sales order number to the invoice or assigns a different number. If you leave this option blank, the invoice number is built from 9 characters of the order number plus 3 characters of the shipment number and 3 characters of the transaction number. For example, suppose your sales order number is 000214123, then your invoice number is 000214123001 001, which is the order number + shipment number + transaction number.
In either case, you must set up parameters for invoice numbers in the Numbering System Setup (XOC) program.
Date
The invoice date is used as the posting date. It defaults to today's date but can be changed to an earlier date when the program is run.
Barcodes
If you use barcode scanning, select the Use barcoded list enty? program option so that the three shipment fields (order number, shipment number, order type) will be one field that can be scanned from the packing slip with the Packing Slip Print (OPK) program.
Warranties
If you selected the Warranty tracking active? option in the System Options Maintenance (XM) program (Warranty Tracking Options), the AR Invoice Register creates a warranty or warranties for the items on the orders that you invoice. The number of invoices depends on your setting for the Warranty assignment method option. If you selected S (serial), the system creates a separate warranty for each serial number if you selected S for the Serial/Lot field and selected the Warranty tracked? field in the item's record in the Enterprise Item Maintenance (IM) program.
Surcharges
The AR Invoice Register adds surcharges that you entered for an item in the Price-Contract Maintenance (PCM) program to Net AR. If you entered or changed a surcharge amount in Sales Order Maintenance (OE), One-Step Invoice Entry (RE), EDI/Sales Quote Maintenance (QOE), or Sales Shipment Confirmation (OC) program, the register includes this updated amount.
If you selected the Var? field for a surcharge in the Surcharge Codes Maintenance (TSCM) program, the AR Invoice Register recalculates the surcharge based on the current percent or amount.
Miscellaneous Charges
Up to five miscellaneous charge codes can be associated with a sales order, a shipment, sales quote, and a new RMA. The invoice register allows posting by miscellaneous code to different accounts if set up in Posting Criteria Maintenance (XPC) as a criterion.
Sales Commissions
The AR Invoice Register calculates the amount of commission to be paid to each sales rep. The calculation is based on the:
Sales Commission Options you selected in the System Options Maintenance (XM) program.
Rep assignment and commission rates hierarchies you set up in Sales Commission Hierarchy Maintenance (SCHM) program.
Sales reps assignments and splits (the portion of the commissionable amount upon which commission is calculated) in Sales Rep Assignment (SRAM) program.
Rates and/or flat amounts for sales reps, customers, customer types, or item types in the Commission Rate Maintenance (SRCM) program.
If you selected I for the Commission payable - I=invoice, P=paymnt option in the System Options Maintenance (XM) program (Sales Commissions Options), the calculated commission is eligible to be paid after you run the AR Invoice Register. If you selected P, the commission is not eligible to be paid until you the customer pay in full and you run the register in the Cash Receipts Entry (RCE) program.
The Always use reps on shipment? system option determines how debit and credit memos attached to invoices are updated to the sales commission files. If this option is selected and you create a credit memo against an invoice and change the reps/splits, you could end up crediting different reps/amounts than were on the original invoice. Likewise, if you change reps/splits in Sales Commission Maintenance (SCM) and make subsequent adjustments to the invoice, those additional transactions may have to be changed to reflect the new reps/amounts as well.
The AR Invoice Register posts accrued commissions and commission expense. If the final commission amount is different and you process commissions through Accounts Payable, adjustments can be made to GL when you run the AP Invoice Register. If you export commission data to your payroll system, you will need to make adjustments to GL through journal entries.
If there are more than 999 transactions for a sales representative, the system creates another invoice in Accounts Payable.
Cost of Goods Sold
Cost of goods is split into the COGS-LABR, COGS-MATL, COGS-OS, and COGS-OVHD accounts. Each cost is rounded prior to posting. This may cause a difference between the inventory posting and the total COGS postings. When a difference occurs, the program adjusts the posting to the COGS-MATL account so that the register is in balance.
Updates
If the Allow final reg upd? field in your user record in the User Maintenance (UIM) program is selected, the program provides one-step processing. When you click OK to indicate that the preview is correct, the program:
Updates the invoices to the AR Master file. This ensures that program totals match. If you run the AR Invoice Register nightly, you should not experience discrepancies between the two.
Updates AR balances for invoiced customers in the Credit Maintenance (CCM) program.
Updates statistics for the Executive Information System (EIS).
Optionally displays a log of errors and of shipments that successfully completed.
Preview and Final Register
When you print the AR Invoice Register, these documents print in this order:
Seq |
Document |
Comments |
1 |
Preview register |
Review to be sure that it is correct. |
2 |
Preview journal |
If these options are selected:
|
3 |
Final register |
If this option is selected:
|
4 |
Final journal |
If these options are selected:
|
The register includes this information:
Batch number
Sales order number
Shipment number
Customer number
ARC Parent customer number if sold to an ARC member
Date ordered
Sales branch
Tax code
Department that gets credit for this sale
Primary sales rep
Percent of the amount subject to commission that is the basis for calculating the commission for the primary sales rep
Gross disc % on sales order header
Accrued disc % on sales order header
Miscellaneous disc % on sales order header
Currency
GL organization code
CM applied to invoice [number] if this is a credit memo for an RMA or DM applied to invoice [number] if this is a replacement order for returned material
Customer name
Ship-to name
The register includes these totals:
Total gross sales: Net sales + Line discounts
Total net sales
Total order discounts:
Disc 1 = Net sales x Gross %
Disc 2 = (Net sales - Disc 1) x Misc %
Disc 3 = (Net sales - Disc 2) x Accrued %
Disc 1 + Disc 2 + Disc 3Total sales tax
Total freight
Total miscellaneous charges
Total surcharges
Total deposits/payments
Total net AR: Total net sales - Total order discounts + Total sales tax + Total freight + Total misc charges + Total surcharges - Total deposits/payments
Total quantity shipped on each line of the register
Total number of invoices
Total cost
Profit margin: Net sales - Total cost
Currency summary: Currency, Gross sales, and Net AR
For each tax authority:
Authority
Non-taxable amount
Exempt amount
Taxable amount
Tax charged
Currency
Total tax
Commissions accrued:
Sales rep
Commission earned
Total commissions accrued
These are added if you selected the Print order totals? program option:
Net sales: Sum of Net sales for lines
Order discount:
Disc 1 = Net sales x Gross %
Disc 2 = (Net sales - Disc 1) x Misc %
Disc 3 = (Net sales - Disc 2) x Accrued %
Disc 1 + Disc 2 + Disc 3Taxes
Freight
Miscellaneous charges + surcharges
Deposits + payments
Net accounts receivable amount: Net sales - Order discount + Taxes + Freight + Misc charges + Surcharges - Deposits - Payments
These are added if you selected the Print line items? Program option:
Line number
Item number
Stocking unit of measure
Standard unit cost
Selling price per unit
Quantity shipped
Line discount
Cost extension: Unit cost x Quantity shipped
Net sale: (Selling price x Quantity shipped) - Line discount
These are added for each component of a configured product if you selected the Print component detail? Program option:
Component item number
Standard unit cost
Selling price
Quantity shipped
Shipping branch
Warehouse
Primary bin location
These are added if you selected the Print stocking detail? Program option:
Shipping branch
Serial or lot number
Warehouse
Bin location
Quantity shipped
These are added if you selected the Include commission detail by order? program option:
Sales rep number
Sales rep name
Customer number
Order number; an order can be listed multiple times if you selected the Process comm for progress payments? option in the System Options Maintenance (XM) program (Sales Commission Options)
Shipment number
Line number
Amount subject to commission
Percent of the amount subject to commission that is the basis for calculating the commission for the sales rep
Commission rate
Commission amount
Currency
Accrual amount
Currency
Sales rep total commission and accrual amounts
These are added if you selected the Include surcharge detail? program option:
Surcharge code
Surcharge amount
Audit Trail
To activate an audit trail, select one of the files listed below in the Audit Trail Maintenance (XAT) program. The system records all transactions. You can then run the Audit Trails (ATR) program and select that file to print a report of these transactions.
O1S: Shipment Header
S3: Commission Accrual
S3L: Commission Accrual Line