## Invoicing

This chapter provides an overview of invoicing and discusses how to:

- Print standard invoices.

- Set up invoice cycles.

- Run cycle billing.

Note. Country-specific functionality for invoicing exists for Argentina, Chile, China, and Peru.

See Also

Printing Invoices for Argentina

(CHL and PER) Working With Sales Order Processing for Chile and Peru

Printing VAT Invoices from the Sales Order System for China

### Understanding Invoicing

After you process a sales order detail line through ship or load confirmation and perform the required billable and payable freight calculations, you can invoice the customer for goods received. You can set up cycles to determine invoice schedules that meet customers' needs. For example, one customer prefers an invoice at the end of the month for all shipments made during that month, and another customer wants a weekly invoice for specific items.

An invoice provides information about an order, such as:

- Item, quantity, and cost.

- Shipping date and payment due date.

- Additional charges and applicable discounts.

You can set up customer-specific information to facilitate the processing of invoices. Through a combination of preferences, cycle calculation rules, and schedules, you can print invoices that meet the company's business needs.

You set up invoice cycles to apply different cycle calculation rules and schedules to different customer and item combinations. To set up invoice cycles, you set up invoice cycle calculation rules and create invoice cycle preferences. Use the Cycle Billing program (R49700) to calculate scheduled invoice dates. After you schedule the invoice dates, you run the Print Invoices program (R42565) to print either an individual invoice or a batch of invoices at the appropriate time.

See Also

(POL and RUS) Working with Sales Order Management Processes for Poland and Russia

(POL and RUS) Working with Invoices for Poland and Russia

### Printing Standard Invoices

This section provides overviews of the Print Invoices program and kit component and parent invoicing, lists prerequisites, and discusses how to:

- Set processing options for the Print Invoices program (R42565).

- Run the Print Invoices program.

#### Understanding the Print Invoices Program

The Print Invoices program (R42565) updates this information in the Sales Order Detail File table (F4211):

- Invoice number.

- Invoice date.

- Invoice document type.

- Status codes (the program sets the next status code to run the Sales Update program (R42800)).

You must specify the next status codes that the system selects for processing.

Note. You can process and print a group of invoices in a batch using a proof or final mode. When you run the R42565 program in proof mode, the system does not perform updates to status codes or any files. You can use the proof version for other functions, such as sales order acknowledgements or invoice reprints. To properly process invoice proofs, you should run version XJDE0005 or a copy of this version.

Invoice Types

You can specify one of these types of invoices for the customers:

Invoice Type | Description
Unconsolidated invoice | The system prints a separate invoice for each order that the customer places.
Consolidated invoice | The system combines multiple sales orders on one invoice. You can set up the option to consolidate invoices in the customer's billing instructions. When you want to consolidate invoices, the system consolidates the accounts receivable and general ledger entries. If you run consolidated invoices and prevent the system from assigning accounts receivable numbers, you must select the version of the Sales Update program that assigns invoice numbers.
Summarized invoice | The system combines multiple line items for the same item if the item number, cost, and price of each line item are identical. For example, if you ship the same item to multiple locations, you can summarize line items for the invoice that is sent to the bill-to location.

Note. You can consolidate or summarize invoices, but you cannot do both.

Currencies

You can determine the currencies in which you want to print net, tax, and gross amounts on the invoices. The processing options for the R42565 program enable you to print amounts in either the domestic or foreign currency, or in these two currencies:

- Domestic and as if currency.

- Foreign and as if currency.

The Print Invoices program uses as if currency processing to print invoice amounts as if they were entered in a different currency. One of the advantages of as if processing is that it does not affect disk space. The system temporarily stores the as if currency amounts in the Invoice Print File table (F42565), and then deletes them after the invoices are processed.

To print foreign and as if currency amounts, the Print Invoices program:

- Calculates the foreign and as if currency amounts based on the domestic amount of the sales order.

- Uses the exchange rate on the sales order date, not the invoice date.

- Prints foreign amounts only for each detail line.

If you print invoice amounts in an as if currency, you can also set a processing option to print tax summary amounts in the same as if currency.

Taxes

You can print tax summary information in a domestic or foreign and as if currency based on:

- Tax group - total taxable amount.

- Tax area - tax rate area, such as a state.

- Tax authority - tax authority with jurisdiction in the tax area, such as a county or city.

If the order has items that are taxed at different rates, the system calculates the taxes, but prints N/A (not applicable) instead of a tax rate. The system calculates tax amounts only for items that you ship. Any backordered items on the invoice do not have tax amount information. If you print invoice amounts in an as if currency, you can also set a processing option to print tax summary amounts in the same as if currency.

Intercompany Invoices

The system processes intercompany sales orders in the same way as other sales orders with the exception that during invoice processing, the system prints an intercompany invoice for the selling branch/plant.

You must set the interbranch processing options for intercompany orders in the Sales Order Entry program (P4210) to identify the intercompany document type, which creates a sales order detail record in the Sales Order Detail File - Tag File table (F49211). After you process the intercompany order through the R42565 program, the system updates the F49211 table with the intercompany invoice number.

You can print intercompany invoices through the normal invoice process in the R42565 program or the Cycle Billing program (R49700). However, you cannot print an intercompany invoice with customer invoices. You can print consolidated invoices for intercompany invoices; however, you must specify this feature in the customer billing instructions for the selling branch/plant.

If you generate an intercompany invoice, you must specify the same intercompany document types in the Sales Order Entry (P4210), Ship Confirm Batch Application (R42500), Print Invoices (R42565), and Sales Update (R42800) programs.

#### Understanding Kit Component and Parent Invoicing

When you set the processing option of the Invoice Print program (R42565) to indicate that the system invoices for kit component items when they are processed individually, you must ensure that you run the R42565 program before you run the Sales Update program (R42800).

To avoid double accounting for amounts at the parent and component level, the system maintains an accumulated invoice amount for the kit parent. This amount represents the total amount invoiced to date for the kit. When the system calculates an invoice amount for a kit, the system validates the sum of the accumulated invoice amount and the current transaction amount so that the invoice amount does not exceed the extended price of the kit parent. The system reduces the transaction amount to equal the remaining amount to be invoiced. This is the difference between the parent extended price and the accumulated invoice amount. The sales order detail line for the kit parent must be at a status that is set to create records in the S.O. Detail Ledger File table (F42199) when the accumulated amount changes due to invoicing a component.

When a kit parent line on a sales order gets split by partially processing through ship confirm or backorder release, the system evaluates the remainder of the accumulated amount to reassign to the new kit parent line. If the extended price remaining on the original line is greater than or equal to the total amount invoiced to date, the system retains the value on the original line. If the extended price remaining on the original line is less than the total amount invoiced to date, the system reassigns the excess amount to the new parent line.

You can manipulate the component quantities for each kit transaction using the Kit Balance Window form. Adjusting quantities can cause a residual amount to exist following the complete processing of a kit. When this occurs, the system adjusts the invoice price of the last transaction to include the additional amount required to account for the residual. If the amount remaining to be invoiced on the parent is greater than the total amount invoiced to date and no more shipments are to be made, the system adds the difference to the invoice amount for the final transaction.

Note. Component invoicing is available only through the R42565 program. To review invoices online, you must run the R42565 program prior to inquiring on invoice information for the sales order. You cannot create component invoices when the Kit/Configurator Pricing Method field in the F4101 table is set to 2, List Price of Final Kit, because the components do not have a unit price.

Example: Partial Ship Component and Full Ship Parent

You have a sales order for a quantity of 100 poker chip kits:

Line Number | Item Number | Parent Number | Parent Line Number | Order Quantity | Ship Quantity | Unit Price | Extended Price | Accumulated Amount
1.000 | PDH01 | PDH01 | 0 | 100 | 100 | 18.00 | 1800.00 |
1.010 | CHIP01 | PHD01 | 1.000 | 200 | 200 | 5.00 |  |
1.020 | CHIP02 | PHD01 | 1.000 | 200 | 200 | 6.00 |  |

If you ship 100 units of kit component CHIP01, the system:

- Splits the component line.

- Invoices the 100 units using the unit price of the component (100 × 5.00 = 500.00).

- Updates the accumulated amount on the parent.

The sales order looks like this:

Line Number | Item Number | Parent Number | Parent Line Number | Order Quantity | Ship Quantity | Unit Price | Extended Price | Accumulated Amount
1.000 | PDH01 |  | 0 | 100 | 100 | 18.00 | 1800.00 | 500.00
1.010 | CHIP01 | PHD01 | 1.000 | 100 | 100 | 5.00 | 500.00 |
1.011 | CHIP01 | PHD01 | 1.000 | 100 | 100 | 5.00 |  |
1.020 | CHIP02 | PHD01 | 1.000 | 200 | 200 | 6.00 |  |

If you then ship 100 units of parent item PDH01, the system:

- Ships the remaining 100 units of component CHIP01.

- Ships additional components, CHIP02.

- Invoices the parent for the balance of the extended price (1800.00 − 500.00 = 1300.00).

- Updates the accumulated amount on the parent.

- Does not invoice the additional components separately when the parent is invoiced with the additional components.

Example: Partial Ship Component and Partial Ship Parent

You have a sales order for a quantity of 100 poker chip kits:

Line Number | Item Number | Parent Number | Parent Line Number | Order Quantity | Ship Quantity | Unit Price | Extended Price | Accumulated Amount
1.000 | PDH01 |  | 0 | 100 | 100 | 18.00 | 1800.00 |
1.010 | CHIP01 | PHD01 | 1.000 | 200 | 200 | 5.00 |  |
1.020 | CHIP02 | PHD01 | 1.000 | 200 | 200 | 6.00 |  |

If you ship 100 units of kit component CHIP01, the system:

- Splits the component line.

- Invoices the 100 units using the unit price of the component (100 × 5.00 = 500.00).

- Updates the accumulated amount on the parent.

The sales order looks like this:

Line Number | Item Number | Parent Number | Parent Line Number | Order Quantity | Ship Quantity | Unit Price | Extended Price | Accumulated Amount
1.000 | PDH01 |  | 0 | 100 | 100 | 18.00 | 1800.00 | 500.00
1.010 | CHIP01 | PHD01 | 1.000 | 100 | 100 | 5.00 | 500.00 |
1.011 | CHIP01 | PHD01 | 1.000 | 100 | 100 | 5.00 |  |
1.020 | CHIP02 | PHD01 | 1.000 | 200 | 200 | 6.00 |  |

If you then ship 10 units of parent item PDH01, the system:

- Ships 20 units each of components CHIP01 and CHIP02.

- Splits the parent line, as well as the component lines.

- Updates the order quantity, ship quantity, and extended price for the parent and component lines.

- Creates an invoice for the 10 units of parent item with no charge because the amount was previously invoiced and the remaining amount to be invoiced is zero.

- Updates the accumulated amount on the parent.

- Assigns the excess accumulated amount from the original parent to the new parent line (500.00 − 180.00 = 320.00).

- Does not invoice the additional components separately when the parent is invoiced with the additional components.

The sales order looks like this:

Line Number | Item Number | Parent Number | Parent Line Number | Order Quantity | Ship Quantity | Unit Price | Extended Price | Accumulated Amount
1.000 | PDH01 |  | 0 | 10 | 10 | 18.00 | 180.00 | 180.00
1.010 | CHIP01 | PHD01 | 1.000 | 100 | 100 | 5.00 | 500.00 |
1.011 | CHIP01 | PHD01 | 1.000 | 20 | 20 | 5.00 |  |
1.020 | CHIP02 | PHD01 | 1.000 | 20 | 20 | 6.00 |  |
2.000 | PDH01 |  | 0 | 90 | 90 | 18.00 | 1620.00 | 320.00
2.010 | CHIP01 | PHD01 | 2.000 | 80 | 80 | 5.00 |  |
2.020 | CHIP02 | PHD01 | 2.000 | 180 | 180 | 6.00 |  |

Finally, you ship the remaining 90 units of parent item PDH01. The system:

- Ships the remainder of components CHIP01 and CHIP02.

- Invoices the parent for the balance of the extended price (1620.00 − 320.00 = 1300.00).

- Updates the accumulated amount on the parent

- Does not invoice the additional components separately when the parent is invoiced with the additional components.

The sales order looks like this:

Line Number | Item Number | Parent Number | Parent Line Number | Order Quantity | Ship Quantity | Unit Price | Extended Price | Accumulated Amount
1.000 | PDH01 |  | 0 | 10 | 10 | 18.00 | 180.00 | 180.00
1.010 | CHIP01 | PHD01 | 1.000 | 100 | 100 | 5.00 | 500.00 |
1.011 | CHIP01 | PHD01 | 1.000 | 20 | 20 | 5.00 |  |
1.020 | CHIP02 | PHD01 | 1.000 | 20 | 20 | 6.00 |  |
2.000 | PDH01 |  | 0 | 90 | 90 | 18.00 | 1620.00 | 1620.00
2.010 | CHIP01 | PHD01 | 2.000 | 80 | 80 | 5.00 |  |
2.020 | CHIP02 | PHD01 | 2.000 | 180 | 180 | 6.00 |  |

Foreign Currency

When you invoice kit components for foreign transactions, the system examines the foreign extended amounts independently of the domestic extended amounts. Examining the amounts independently prevents the system from introducing additional currency conversions into the invoicing calculations. However, this may create invoices with a value on one side of the transaction, domestic or foreign, where the other side of the transaction has a value of zero. These unbalanced invoices would likely have immaterial values and be infrequent. Disposition these invoices based on the business practices of your company.

#### Prerequisites

Before you complete the tasks in this section:

- Verify that sales orders have the correct status code for printing invoices.

- If you use customer sets, ensure that the system constant for customer sets is activated in the Item Branch program (P41026) so that the Print Invoices program (R42565) displays all entities that belong to the customer set.

#### Setting Processing Options for the Print Invoices Program (R42565)

Use these processing options to set system default values, define print parameters, specify whether the system updates costs and prices, and define how the system processes data.

Default

Use these processing options to specify the default values that the system uses.

1. Status Code - From and 2. Status Code - To | Specify the from and to status codes used to specify the range that the system uses to select orders for printing invoices. You must use a status that has been set up in user-defined code (UDC) table 40/AT of the order activity rules. The combination of Status Code - From and Status Code - To must be a valid combination of last status and next status in the Order Activity Rule table (F40203) for the order type and the line type that you are processing.
3. Based On Status | Specify whether the system selects the Sales Order Detail table (F4211) according to the last status or next status. Values are: 1: Select according to the last status. 2: Select according to the next status.
4. Override Next Status Code | Specify a value from UDC 40/AT that indicates the next step in the order process. The UDC that you specify must have been set up in the Order Activity Rules table (F40203) based on the order type and the line type that you are using. The override status is another allowed step in the invoicing process and is optional. The combination of the beginning status and the override next status must be a valid combination of last status and next status in the F40203 table.
5. Prevent Next Status Update | Specify whether to prevent the system from updating the next status from the Order Activity Rules. The user code that you specify from UDC 40/AT must be set up in the Order Activity Rules table (F40203) based on the order type and the line type that you are using. Values are: Blank: Update the next status. 1: Prevent the next status update.
6. Prevent A/R Number Assignment (prevent accounts receivable number assignment) | Specify whether the system assigns accounts receivable numbers to the transaction. Values are: Blank: The system assigns accounts receivable numbers to the transaction when processing an invoice in proof mode. 1: The system does not assign accounts receivable numbers during processing.
7. Assign A/R Next Number (assign accounts receivable next number) | Specify the index number that the system uses when assigning an accounts receivable next number. Select from ten different sequencing buckets for accounts receivable next number assignments. If you leave this processing option blank, the system assigns 01.
8. Invoice Document Type | Specify a value from UDC 00/DT that specifies the document type that the system assigns to the invoice. You must use a document type that has been set up in UDC 00/DT. If you leave this processing option blank, the system uses document type RI.

Print

Use these processing options to specify the data that the system prints.

1. Invoice Date | Enter the date that appears on the invoice. If you leave this processing option blank, the system prints the system date.
2. Print Backordered/Cancelled Lines | Specify whether the system prints backordered lines, canceled lines, or both on the invoice. Values are: 1: Print backordered lines. 2: Print canceled lines. 3: Print both backordered and canceled lines. 4: Do not print backordered or canceled lines.
3. Extend Price on Backordered Lines | Specify whether the system prints the extended price of backordered items. Values are: Blank: Do not print the extended price of backordered items. 1: Print the extended price of backordered items.
4. Print Backordered Lines Once Only | Specify whether the system prints backordered and canceled lines multiple times. Values are: Blank: Print backordered and canceled lines multiple times. 1: Print backordered and canceled lines one time.
5. Print Extended Cost | Specify whether the system prints the extended cost and profit margin. Values are: Blank: Do not print the extended cost and profit margin. 1: Print the extended cost and profit margin. If you set this processing option to 1, you must print in landscape format to be able to view the extended cost.
6. Print Available Discount | Specify whether the system prints discounts available to a customer. Values are: Blank: Do not print available discounts. 1: Print discounts available to a customer.
7. Print Kit Component Lines | Specify whether the system prints component lines for kits. Values are: Blank: Do not print kit component lines. 1: Print kit component lines. If you are using JD Edwards EnterpriseOne Configurator, set this option to 1.
8. Print Future Committed Lines | Specify whether the system prints future committed lines. Values are: Blank: Do not print future committed lines. 1: Print future committed lines.
9. Print Item Number | Specify whether the system prints the customer's item numbers along with the item numbers. Values are: Blank: Print only the item numbers. 1: Print the customer's item numbers along with the item numbers. If you leave this processing option blank, the system prints only the item numbers.
10. Customer Cross Reference | Enter a value from UDC 41/DT that specifies the cross-reference code that identifies the customer item number, if you want to print the customer item number on the invoice.
11. Item Summary | Specify whether the system prints summaries of multiple line items for the same item if the item number, cost, and price for each line item are identical. For example, if you ship the same item to multiple locations, you might want to summarize line items for the invoice that is sent to the bill-to location. Values are: Blank or 1: Print summaries of multiple line items for the same item if the item number, cost, and price of each line item are identical. If you set this processing option to 1, the summarization is based on these fields: 2nd Item Number Unit Price Unit of Measure Line Type Pricing Unit of Measure Document Number Document Type Document Company When working with kits, set this option to 1. 2: Print summaries of items split by commitments. If you set this option to 2, the summarization is based on these fields: Order Number Order Type Order Company Line Number Unit Price Unit of Measure Line Type Pricing Unit of Measure
12. Print Serial Numbers | Specify whether the system prints serial numbers on the invoice. Values are: Blank: Do not print serial numbers on the invoice. 1: Print serial numbers on the invoice.
13. Print in Foreign Currency | Specify whether the system prints foreign currency. Value are: Blank: Do not print foreign currency. 1: Print foreign currency.
14. Print Tax Summary | Specify whether the system prints tax summary information on an invoice. The system summarizes the tax information according to how you set this option. Values are: Blank: Do not print tax summary information. 1: Print tax summary information by group on an invoice. 2: Print tax summary information by area on an invoice. 3: Print tax summary information by authority on an invoice.
15. Global Print Message | Enter a value from UDC 40/PM that specifies the global print message that the system prints on each invoice.
16. Print Associated Text | Specify whether the system prints sales-order associated text on an invoice. Values are: Blank: Do not print sales-order associated text on an invoice. 1: Print associated text. If you set this option to 1, the system prints the associated text for both the sales order header and the sales order detail.
17. Print Drafts | Specify whether the system prints drafts. Values are: Blank: Do not print drafts. 1: Print drafts.
18. Draft Origination | Enter the city name from where the draft originates. If you enter a city name here, it appears on the draft.
19. Print Message Preference | Specify whether the system prints user-defined print message preference for the combination of item number and customer number that appears in the sales order. Values are: Blank: Do not print user-defined print message preference. 1: Print user-defined print message preference.
20. As If Currency Code | Specify an as if currency in which to print net, sales tax, and total order amounts on the invoice. The Print Invoice program (R42565) uses as if currency processing to calculate and print amounts as if they were entered in a currency other than the domestic or foreign currency.
21. As If Print Tax Summary | Specify whether the system prints the tax summary amounts in an as if currency. Values are: Blank: Do not print tax summary information in an as if currency. 1: Print tax summary information in an as if currency. The program uses the currency code specified in the As If Currency Codeprocessing option and the format specified in the Print Tax Summary processing option.
22. Print Additional Header Text | Specify whether to print the additional header text on the page header of the report. The additional header text identifies the document as an original or a reprint. Values are: Blank: Do not print additional header text. 1: Print additional header text to indicate that the document is original. 2: Print additional header text to indicate that the document is a reprint.
23. Print copy for Forwarded To Address | Specify whether the system prints a copy of the invoice for the forward to address. Values are: Blank: Do not print the forward to address. 1: Print a copy of the invoice for the forward to address.
24. Print Supplier Tax ID | Specify whether the system prints the Supplier (branch/plant) Tax ID. Values are: Blank: Do not print the Supplier Tax ID. 1: Print the Supplier Tax ID.

Cost/Price Update

Use these processing options to specify how the system processes cost and the version of the cost program to use.

1. Update Cost | Specify whether the system updates costs, price, or the exchange rate for the item prior to printing an invoice. The system updates all selected sales orders with current costs, exchange rates, and prices. To ensure that the system accurately calculates the profit margins, you can run a sales cost update. Run this update if the purchasing or manufacturing costs change frequently, or if orders have been in the system for an extended period before being updated. Values are: Blank: Do not update costs for the item prior to printing an invoice. 1: Update costs with the Sales Order Batch Price/Cost Update program (R42950) prior to printing an invoice. Note. Costs can be updated only if inventory has not been relieved.
2. Sales Price/Cost Update Version (R42950) | Enter the version of the Sales Order Batch Price/Cost Update program (R42950) that the system uses to update costs prior to printing invoices. If you leave this processing option blank, the system uses version ZJDE0001. For interbranch orders, you must set the processing options in this program to update the price information, and specify the exchange rate for the branch/plants that are involved in the transaction.

Prepayment

Use this processing option to specify whether the system displays prepayments.

1. Display Prepayments on Invoice | Specify whether the system displays prepayment information on an invoice. Values are: Blank: Do not display prepayment information on an invoice. 1: Display prepayment information on an invoice.

Process

Use these processing options to specify the processes that the system performs.

1. Enable Next Order Status Preference | For future use. Specify whether the system uses Next Order Status Preference. This processing option enables advance preferences for all sales order detail records that the system processes when printing invoices. Values are: Blank: Do not use Next Order Status Preference. 1: Use Next Order Status Preference.
2. Printing Invoice Selection | Specify whether the system allows you to print invoices. Values are: Blank: Print invoices. 1: Do not print invoices.
3. Kit Component Level Invoicing | Specify whether the system invoices a component of a kit independent of its parent item. Kit component invoicing does not support configured items nor items shipped using the JD Edwards EnterpriseOne Transportation Management system. Values are: Blank: Component level invoicing is not active. No component level invoicing will occur. 1: Component level invoicing is active. If you select both a kit parent and component during an invoice run, the system invoices only at the parent level.

EDI

Use these processing options to specify how the system processes electronic data interchange (EDI) information.

1. EDI Processing Selection | Specify whether the system uses EDI functionality. Values are: Blank: Do not activate EDI processing. 1: Activate EDI processing.
2. EDI Transaction Type | Specify the EDI transaction type. Values are: 1: Invoice. 2: Purchase order acknowledgement. 3: Request for quotation.
3. EDI Document Type | Enter a value from UDC 00/DT that specifies the document type for EDI transactions. You must use a document type that has been set up in UDC 00/DT.
4. EDI Transaction Set Number | Enter a value from UDC 40/ST that specifies the transaction set number in EDI processes. You must use a transaction set number that has been set up in UDC table 40/ST.
5. EDI Translation Format | Specify the translation format for EDI transactions.
6. Trading Partner ID (trading partner identification) | Specify the identification number of the EDI trading partner.
7. Transaction Set Purpose | Enter a value from UDC 47/PU that specifies the transaction set purpose for the EDI transactions. You must use a transaction set purpose that has been set up in UDC table 47/PU.
8. Extended EDI Invoice Processing | For future use. Specify whether the system populates the EDI Invoice Expanded Header (F470462) and EDI Invoice Expanded Detail (F470472) tables when printing invoices. Values are: Blank: Do not populate the tables. 1: Populate the tables.
9. Reference Qualifier 1, 10. Reference Qualifier 2, 11. Reference Qualifier 3, 12. Reference Qualifier 4, and 13. Reference Qualifier 5 | For future use. Enter the reference qualifiers that the system uses to locate the corresponding shipment reference number.

Demand Scheduling

Use these processing options to specify how the system processes demand scheduling.

Party Type 1, Party Type 2, Party Type 3, Party Type 4, and Party Type 5 | Enter the party type qualifiers for retrieving the values for the party type name and ID number. The system populates the F470462 table with the party type name and ID number if you enable the EDI Extended EDI Invoice Processing field on the EDI tab.

E-mail

Use these processing options to specify how the system processes emails.

1. E-mail Acknowledgement Selection | Specify whether the system sends an email acknowledgement when you run the Print Invoices program. Values are: Blank: Do not send email acknowledgements. 1: Send email acknowledgements.
2. Electronic Address Type | Enter a value from UDC 01/ET that the system uses when creating and defining the email address from the Who's Who contact information. The system then uses the email address for acknowledgements. If you leave this processing option blank, the system uses a default value of E.
3. Include Amounts on E-mail | Specify whether the system prints all line amounts and totals (such as total order amount, price, extended amount, and tax) on the email acknowledgement. Values are: Blank: Do not print all line amounts and totals on the email acknowledgement. 1: Print all line amounts and totals on the email acknowledgement.
4. E-mail Heading Message | Enter a value from UDC 40/PM that specifies which global print message the system includes on the email acknowledgement. If you leave this processing option blank, the system does not include a global print message.
5. E-mail Subject Line | Enter a value from UDC 40/PM that specifies the text that the system prints in the subject line when sending an email acknowledgement. If you leave this processing option blank, the system leaves the subject line blank.
6. E-mail Sender Address Number | Specify the address number that specifies the name and email address of the sender of the email acknowledgement.

#### Running the Print Invoices Program

Select Sales Order Processing (G4211), Print Invoices.

### Setting Up Invoice Cycles

This section provides an overview of invoice cycle setup and discusses how to:

- Create invoice cycle preferences.

- Add scheduled invoice date ranges.

#### Understanding Invoice Cycle Setup

You set up invoice cycles to control how the Cycle Billing program (R49700) calculates scheduled invoice dates. When you set up invoice cycles, you apply different cycle calculation rules and schedules to different customer and item combinations. For example, one customer prefers an invoice at the end of the month for all shipments made during that month, and another customer wants a weekly invoice for specific items.

You set up an invoice cycle calculation rule to define the type of calculation that the system uses to calculate an invoice date. After you set up invoice cycles, you assign the rules to customer and item combinations with the invoice cycle preference. You can later revise scheduled invoice dates, if necessary.

After you confirm orders for delivery, you process them through the R49700 program. The R49700 program calculates scheduled invoice dates based on the invoice cycle preference, invoice cycle calculation rules, and scheduled invoice date ranges. You then run the Print Invoices program (R42565) to create the invoice document that you send to your customer.

Invoice Cycle Preference

You set up invoice cycle preferences to assign an invoice cycle based on combinations of customer number, customer group, item number, or item group. The combinations are defined in the preference hierarchy. For example, if all customers use the same invoice cycle for all items, the hierarchy is set for all customers and all items. You can add invoice cycles as required.

Invoice Cycle Calculation Rules

You set up an invoice cycle calculation rule to define the type of calculation that the system uses to calculate an invoice date. For example, you can set up daily, bi-weekly, or based-on-date invoicing. You can then enter test dates to review the calculated invoice dates and ensure that you have set up the calculation correctly.

If the calculation rules are bi-weekly, semi-monthly, or at the end of each month, you must also set up scheduled invoice date ranges.

This table contains invoice cycle calculation rules that are hard-coded and require specific settings:

Calculation Rule | Required Settings
Daily invoicing | Day of Week must be blank. Based On Date Name must be zero. Days to Increment is optional.
Weekly invoicing | Requires Based On Date Name and Day of Week. Days to Increment is optional.
Bi-weekly invoicing | Requires Based On Date Name. Day of Week must be blank. Days to Increment is optional.
Semi-monthly invoicing | Requires Based On Date Name. Day of Week must be blank. Days of Increment is optional.
End-of-month invoicing | Requires Based On Date Name. Day of Week must be blank. Days to Increment is optional.
Based-on-date invoicing | Requires Based On Date Name. Day of Week must be blank. Days to Increment is optional.

Example: Scheduled Invoice Date Calculation

This example illustrates how the R49700 program calculates the scheduled invoice date and how the calculation affects the generation of invoices. These values are entered for the invoice cycle calculation rule:

- Based on Date field is set to the order or transaction date of September 27.

- Days to Increment field is set to 0.

- Calculation Rule field is set to end of month.

- These are the Scheduled Invoice Date Ranges:

  - Start Dates are September 1 and October 1.

  - End Dates are September 30 and October 31.

  - Invoice Dates are September 30 and October 31.

If the delivery confirmation occurs on September 29, these events occur:

- On September 29

  The R49700 program processes the order line and calculates the scheduled invoice date to be September 30. Because the scheduled invoice date is greater than the system date (September 29), the R49700 program creates deferred journal entries.

- On September 30

  Because the scheduled invoice date is before or equal to the system date, the R49700 program generates the invoice and the Sales Update program (R42800) reverses the deferred entries and completes the required general ledger entries.

Automatic Accounting Instructions for Invoice Cycles

You must set up these automatic accounting instructions (AAIs) when processing invoice cycle information for stock items:

- 4221 - deferred cost of goods sold (COGS).

- 4231 - deferred revenue.

- 4232 - unbilled accounts receivable.

UDCs for Invoice Cycles

You must set up these UDC tables for use with invoice cycle processing:

- Invoice Cycle - 40/CY.

- Day of Week - 42/DW.

- Based on Date Name - 42/DN.

- Calculation Rule - 42/CR.

See Also

Activating Preferences

#### Forms Used to Set Up Invoice Cycle Preferences

Form Name | FormID | Navigation | Usage
Work With Preference Master | W40070C | Sales Order Advanced & Technical Ops (G4231), Preference Master | Review and select preference records, specifically for invoices.
Work With Invoice Cycle | W40315A | Select the cycle invoicing preference (15) on the Work With Preference Master form. | Review and select invoice cycle records. Create an invoice cycle from the selected preference combination.
Preference Hierarchy Selection | W40073F | Click Add on the Work With Invoice Cycle form. | Select the preference combination for the invoice cycle that you create.
Invoice Cycle Calculation Rule | W40315F | Select a record and select Calc Rule (calculation rule) from the Row menu on the Work With Invoice Cycle form. | Create invoice cycle preferences.
Scheduled Invoice Date | W40315D | Select Scheduled Inv Dates (scheduled invoice dates) from the Form menu on the Invoice Cycle Calculation Rule form. | Add scheduled invoice date ranges.

#### Creating Invoice Cycle Preferences

Access the Invoice Cycle Calculation Rule form.

This form displays the invoice cycle calculation rule.

Fiscal Year | Specify a two-digit number for the applicable year. If you leave this field blank, the program uses the system date.
Invoice Cycle | Enter the invoice cycle. The system uses the Invoice Cycle field in the Cycle Billing program (R49700) to determine the method of invoicing that is used (for example, daily, weekly, monthly).
Preference Status | Specify a code to activate or deactivate a preference. Values are: 1: Activate 2: Deactivate
Calculation Rule | Enter a value from UDC JE42/CR that defines the type of calculation that the system uses to calculate the scheduled invoice date.
Number of Days Increment | Enter the number of days that the system adds to the based-on date. For example, you might enter several days to allow for time between the order date and the delivery date. The system adds the number in this field to the based-on date when the Cycle Billing program (R49700) calculates the scheduled invoice date.
Based On Date Name | Enter a value from UDC 42/DN for the name of the specific date field from either the sales order header or the sales order detail that will be used to calculate the scheduled invoice date. For example, if the customer requires invoices at time of delivery, then select the delivery confirm date.
Day of Week | Enter a value from UDC JE42/DW that defines the day of week on which the Print Invoice program (R42565) produces an invoice for the customer. This field must remain blank unless you invoice a customer on the same day each week. This field is completed only for the weekly invoicing calculation rule.

#### Adding Scheduled Invoice Date Ranges

Access the Scheduled Invoice Date form.

Invoice Date | Assign a specific invoice date that corresponds to each effective from and through date. The system ignores the number-of-days increments for these preferences: Bi-weekly Semi-monthly Monthly

### Running Cycle Billing

This section provides an overview of cycle billing, lists a prerequisite, and discusses how to:

- Set processing options for the Cycle Billing program (R49700).

- Run the Cycle Billing program.

#### Understanding Cycle Billing

You use the Cycle Billing program (R49700) to calculate scheduled invoice dates. The R49700 program is a batch program that works in conjunction with the invoice cycle preference and the invoice cycle calculation rule. If no invoice cycle preference is found, the system applies the default invoice cycle identified in the appropriate processing option.

The scheduled invoice date determines whether the system writes deferred journal entries to general ledger accounts. If the scheduled invoice date is more recent than the current date, the invoice is on a billing cycle.

The R49700 program updates deferred general ledger accounts for COGS, revenue, and unbilled accounts receivable. You can run the program in proof mode for review purposes or in final mode to perform the updates.

Deferred entries are necessary because, although you have delivered the order to the customer, the system does not include the order in the sales update until the order has been invoiced on the next billing cycle. The system must update the records to indicate that inventory is no longer in transit, and the accounting records must reflect the deferred billing.

A scheduled invoice date for an order that is before or equal to the current date indicates:

- A daily invoice cycle.

- No billing cycle.

- The current date as the cycle date.

The program does not create deferred entries because the order will be included in the sales update that night.

The system processes orders differently for cycle billing and non-cycle billing. The following tables provide examples of how the system updates different general ledger accounts for non-cycle and cycle billing. The debit and credit amounts represent sample monetary values for each transaction.

Non-Cycle Billing Journal Entries

This table describes the general ledger accounts and corresponding entries for non-cycle billing:

Program | General Ledger Account | AAI | Debit Entry | Credit Entry
Load Confirm | Inventory In-Transit | 4241 | 410 |
Load Confirm | Inventory | 4240 |  | 410
Update Customer Sales | COGS | 4220 | 410 |
Update Customer Sales | Inventory In-Transit | 4241 |  | 410
Update Customer Sales | Billed Accounts Receivable |  | 990 |
Update Customer Sales | Revenue | 4230 |  | 990

Cycle Billing Journal Entries

This table describes the general ledger accounts and corresponding entries for cycle billing stock items:

Program | General Ledger Account | AAI | Debit Entry | Credit Entry
Load Confirm | Inventory In-Transit | 4241 | 410 |
Load Confirm | Inventory | 4240 |  | 410
Cycle Billing | Deferred COGS | 4221 | 410 |
Cycle Billing | Inventory In-Transit | 4241 |  | 410
Cycle Billing | Unbilled Accounts Receivable | 4232 | 990 |
Cycle Billing | Deferred Revenue | 4231 |  | 990
Update Customer Sales | COGS | 4220 | 410 |
Update Customer Sales | Deferred COGS | 4221 |  | 410
Update Customer Sales | Deferred Revenue | 4231 | 990 |
Update Customer Sales | Revenue | 4230 |  | 990
Update Customer Sales | Unbilled Accounts Receivable | 4232 |  | 990
Invoice Post | Accounts Receivable | NA | 990 |

Note these exceptions:

- If load confirmation and delivery confirmation occur at the same time (that is, the inventory is never considered to be in transit), then the Transportation Load Confirmation program (P49640) does not create journal entries. The R49700 program credits the Inventory account instead of crediting Inventory In-Transit entries.

- If the P49640 program prints a primary invoice:

  The system does not generate deferred journal entries. The system generates non-cycle billing journal entries.

After you process orders through load confirmation and perform billable and payable freight calculations, the orders advance to cycle billing status. Depending on whether you have printed invoices with the delivery documents, the R49700 program processes order lines in the following way:

- If a sales order line has been invoiced:

  The R49700 program changes the status of the sales order line to indicate that it is not to be included in periodic invoicing. The system advances the order line to the Update Customer Sales status.

- If a sales order line has not been invoiced:

  The R49700 program checks the invoice cycle preference or the processing option, and calculates the scheduled invoice date. When you run the R49700 program in final mode, the program updates the F49211 table with the invoice cycle and scheduled invoice date. It also changes the status of the order line to indicate that it is to be included in periodic invoicing. The program writes deferred accounting entries for order lines that are to be invoiced on a future date.

Review the Cycle Billing Transaction Report

If you want to review the general ledger entries or determine the presence of errors, you can review the Cycle Billing Transaction report that the system generates for deferred entries. This report details the general ledger entries for a particular order line. The system enables up to four general ledger entries for a single order line. When you run the R49700 program in proof mode, this report displays the general ledger entries that will occur when you run the program in final mode. When you run the program in final mode, the report displays the updates that have been made.

#### Prerequisite

Verify that a UDC for the default invoice cycle exists. The system applies this code when no preference is found for a customer and item combination.

#### Setting Processing Options for the Cycle Billing Program (R49700)

Use these processing options to set report default values.

Defaults 1

These processing options specify override statuses for invoiced and processed orders, determine the version of the Sales Update program (R42800) to call, determine whether the program runs in proof or final mode, and specify the default invoice cycle.

1. Override Next Status Invoiced Orders | Specify the value of the override next status to use for an order that is already invoiced.
2. Override Next Status Processing Orders | Specify the value of the override next status for processing orders. If nothing is entered, the system uses the value of the next status from the order status flow.
3. Sales Update Version | Specify the version of the Sales Update program (R42800) from which to retrieve processing options.
4. Proof or Final mode | Specify whether the system runs the program in proof or final mode. Values are: Blank: Proof mode. 1: Final mode.
5. Default Invoice Cycle | Specify the value of the default invoice cycle to use for those lines for which a preference is not found.

#### Running the Cycle Billing Program

Select Invoice Processing (G42113), Scheduling Invoice Cycle.