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Vendor invoice automation dynamics 365 for Administration

[Music] hi guys welcome to this video uh we did covered a lot about purchase invoices and various ways of issuing invoice to the vendor majority of the times we issued the invoice to the vendor through a purchase order and of course in some of our videos in the past we also did touched upon invoice journals so in this video Let's see what are the different ways of U invoicing a vendor and um posting a credit to the vendor so let's see some of the common ways apart from the ways around three different ways that we are going to review now apart from those three different ways there are also few other methods which we will be touching upon later but these three methods are quite commonly used methods to invoice the vendor so let us uh go through them one by one and let's also try to revisit or do a small revision with respect to the Ledger or voucher entries when we are doing and posting this invoices so um so that U you remember them because it's been a while we've spoken about the voucher postings in some of our earlier videos so let's also try to do a quick revision on the vouchers as well so let us um uh let me go into the accounts payable module and and uh against the invoices there are few choices here um so one common method is uh the pending vendor invoices I will touch on this in a while but let's first get into the invoice Journal method so in the case of an invoice Journal just click on the new button create a journal we already created a journal in the earlier videos just in case you missed it just have a quick l or quick look you firstly need to to create a journal and only then you will be able to create an invoice Journal so once you uh have this journal name and um in order to get into the invoice Journal click on the line or click on this uh link and it will take you to the invoice Journal line section and here I'm going to I can either choose a main account directly in this case I'm going to choose a subledger so let me choose the vendor account directly here and I've selected the vendor account so which means that the the summary account which is sitting behind this vendor subledger is the one which is going to be credited ultimately so we've already did this sub Ledger Ledger Concepts on how they are related with each other in some of our posting profile discussions and I've also did an elaborate video on how do we how the summary account works so just have a quick look into all those videos just in case if you not watched all those videos so it makes more sense to you so now you have this uh uh this vendor uh selected here um you can also pick a invoice date and again the description can be predefined in the system as well here is the identification and um it's like a standard text you can predefine some bunch of descriptions so you can easily use them you don't need to type them every time so in this case I'm just saying that it's going to be the vendor invoice so firstly when do we opt for an invoice Journal we off for an invoice Journal whenever you feel there is no purchase order issued to the vendor and whenever you have this non-purchase related expenses or uh a bill that is provided to you by one of the vendor for any internal services or any kind of uh uh internal uh materials that you have purchased for the sake of office like it would be like a tissue box or any stationaries or any other expense that you have received received and you haven't do not have any purchase order and you do not want to get into the purchase order you would like to register those expense directly in the form of an invoice Journal then the invoice Journal is a best form of document to capture those expense and post those expense Against The Ledger sorry against the vendor and the expense accounts right so that's the reason why I'm not involving purchase order in this case so I decided to keep it simple and directly get into the vendor invoice journal and post the uh invoices against the vendor so that's the reason why I am skipping the purchase and directly uh using this method to invoice a customer in was the vendor so the vendor is selected the vendor description is selected uh let's say that I'm trying to pay a rent for for some something that I have rented um so let me just uh um the let's say the rental is $1,000 and um um I'm going to um log it against the expense account here which is related with rental let's say for example but in this case when I'm clicking on an offset account the whole list of sum whole list of main accounts is is populated and you might need to select them but just in case you're using this vendor invoice journal and you are using it regularly for the sake of posting certain expense and you would like to only see those expense accounts which we are normally using on a periodic basis so that it's easier for us to go ahead and pick it up so what we can do is we can um um get into uh the vendor as well and uh in the invoice tab there is something called as a default account inside the vendor master so get into this default account section and you can also um pull in all those let's say for example I always do a j journal for um installation charges let's say for example and um let's say Transportation charges and uh in this case we are also doing rental right so I'm going to pick these three accounts and we've also seen in the case of a general journal we did defaulted the U offset account in the journal level itself right so you are also having other areas where you can default the off account automatically into the into the journals if required but this is one way that we can also make sure we default it in the vendor level so once you do that and if I go back to the to the opposite account I'll see only those three so it's easier for me and I can quickly go ahead and select it and likewise I can even pick a financial Dimension if I wanted to post against a specific business unit or Department within that main account we have this concept of financial dimension iion which you already um reviewed so I can also pick those relevant Dimensions here but yeah I will do that but I will do that in in shortly in a minute so this is how I I choose the offset account the credit amount so uh on the vendor okay so likewise there are also other areas like say for example um you can even put the dimensions against the vendor by clicking on this and you can also so put the vendor level Dimensions if you want to and you can also use this function button and break down the voucher option so this way you can even break down this as I mentioned Financial Dimension level let's say that this uh rental expenses shared by two different business units let's say for example so in such cases you can um uh you can even go and let's say that um let's say the operations team um and also I'm going to share this expense with uh it team as well as a part of rent so I can even do that okay so um what I can do here is let's say it's 500 and then another 500 debit um and then just just go ahead and update it and you will see that the multiple lines are generated so um instead of one single line with credit and debit I have uh debit line with uh with thousand and I have two credit lines with 500 500 each I believe the accounting equations is uh balanced um so this is another way that we can do um I can I need to also type my um vendor invoice and then and just quickly let's validate this transaction transaction I think looks should look okay so once it looks okay then go ahead and post this transaction so once the transaction is posted um then uh you will also be able to see the voucher let's review the voucher the voucher is getting posted it's very very simple and straightforward the vendor account is uh this and this particular vendor account is getting credited with th000 because we are posting the liability to the vendor the vendor balance also increases by th000 and U here uh meaning the subledger level balance increases and the main account balance also increases so here even though we posted the subledger level in the uh invoice Journal but the voucher is pointing to the summary account okay I will go to the summary account shortly and show you from where where it get getting fetched and these two are the expense account that we have selected as an offset account in the invoice Journal so um so yeah so these are the offset account 500 500 and uh that's all so this is the voucher and how do we get this is um if I get into the account receivable sorry accounts payable let's get into the accounts payable uh vendor posting profiles so under the vendor posting profile this is a summary account against all but normally we make sure that the summary account are pointing to the vendor groups in this case to keep it simple I kept it for all vendors only one summary account here so that's the summary account and these two are the offset account that is something that we have tagged against the against here in the invoice Journal so this is how the invoice Journal works it's pretty straightforward and simple so this is how the transaction Works guys and again you've already seen about the payment journal transaction in our earlier video where we can go and do the payment settlement which will then later on uh debit to the vendor and it gets uh uh meaning the the vendor balance will get debited and then the credit will be posted to the relevant offset account in this case it could be a bank account as well so that's the the transaction and that's how the um the vendor balance gets knocked off right so we've already seen while discussing about the foreign currency reevaluations so maybe I don't want to repeat it again we will see about the payment journals later but I believe you understand the voucher impact and The Ledger impact for the payment it normally gets reversed so yeah so this is the invoice Journal so now let's compare the invoice journal with another method which is called a spending vendor invoices right so here it is so if I get into the pending vendor invoices so I can just click on new and create an invoice through the pending uh invoice method as well so the own difference between the pending invoice method and the invoice Journal is invoice Journal directly you're choosing the debit and credit accounts and posting it at the main account level uh there are no items involved in this particular case you can also involve the items service items uh any kind of expense that you wanted to post you can use this which are not linked to or even in some cases if they're even linked to a PO you can still use this particular uh vendor invoice we will see a nonp based invoice for first let's say that we received an expense from one of our vendor that is uh maybe some kind of uh uh installation charges or some kind of uh services that a vendor offered to us and we suddenly received an invoice we haven't originally floated any purchase order to them but we've received an invoice from them and we would like to register an invoice and we would also like to uh um display the list of services offered by them right we also wanted to list down the expenses in a form of a service item in such cases or in form of category in such cases the best form of invoice that we can use is this is also like a non-po based invoice you can also use this without a PO we can also use it with the PO we will see both the variations so in such cases um the invoice Journal won't be the right choice the pending vendor invoice will become a right choice because we can also add some item lines into this particular invoice so let us see how they work again let's say that it's against uh this particular vendor and uh um let us assume that um we are offer the we are we got an invoice from a vendor for any kind of service I can add a line here and one interesting factor is when I add a line here and I try to browse for the item it will only show the item which are service item it will not show any normal item in this particular list for example let's say this item why is this item appearing in this list is because if I get into this particular item and check the item master um let's check the item Master even though it says the subtype is uh is product but the item model group right is non-stocked product okay so such items which are marked as non-stocked items or non-stock products in the item model group level are those kind of items which will be displayed here in this particular list uh so you can directly go and add a service item as a list and you can go ahead and invoice and register this expense in a form of vendor invoice in the system or the best way is to add a line and use a procurement category okay so the procurement category in this case is let's say I'm um I got a cleaning service let's say from one particular vendor and I received an invoice and would like to register the invoice into the system and make a payment let's say for example in such cases I can go with a category level without even adding any items here and say how many quantities of that service we have received and then what is going to be the uh the amount for that particular category so um so once you do all that then you will you're good to go right so in this particular case since we are using the vendor uh invoice and we are not involving any purchase order here there is an option to link the purchase order as well but this is a non-po based U uh invoice sorry vendor invoice so this particular options over here will not make any sense because they will come into picture only when there is a PO component involved meaning we can try to bring in the lines from the PO with various um various parameters like we can bring in only lines which are with the receive now quantity marked or once with are only registered or once all which are receiv received Etc so that way you can link a PO lines into the vendor invoice so into the pending vendor invoice but in this case there's no PO so I'm directly I'm not I will not be able to use this option so the lines are manually added in this particular case and uh now we can um there is also like no proper three-way matching happening because the vendor invoice is not matched with the product receipt or with the PO lines here like how it happens in the 3way match so I can directly even go ahead and post this particular this kind of a purchase orders I can even distribute uh this kind of amount if you have any amount you want to distribute it across multiple uh Financial Dimensions or multiple accounts you can even do that so um let me just show you the area so you can even split this uh this amount across multiple Financial Dimensions or multiple accounts so if you want to so there are also options to do that uh and yeah so let us uh go and put a invoice number and any kind of description if you want to and let's say cleaning service and just uh save it so if you see this is your pending invoice right so if I go back uh I will see that they are also here as a pending invoice and there is the invoice number here okay it's pretty much the last invoice it's a part of your pending vendor invoice table so let me go back to that particular invoice um and post this invoice okay as soon as I posted it I see that there are no more displayed in the pending invoice section right they are gone so where do they go so if I go here um it's gone from this list and it will appear in this particular list so this will show all those pending invoice which are not posted this will show all those posted invoices in the system that are awaiting for payment journal so if I want to see what are the invoices which are awaiting for the payment which are posted I can just come into the open even though the name is slightly misleading it says open vendor invoice most likely we try to assume that these are non- posted invoice no these are posted invoice which are pending for the payment journal posting right so if I come here you'll see that our our vendor our inv our um um vendor invoice is uh waiting here in the in the list the end so from here I can go ahead and uh process the payment journal and I can go ahead and do do the further processing but before that let's just review the the voucher transaction uh I think the voucher is not yet transferred from the subledger it might take few few more seconds normally the batch runs fast I don't [Music] know um general journal go to the periodic sub Ledger not a transferred and this is the one which is still pending just in case it doesn't transfers you might need to manually go to the periodic task subledger entries and just say transfer now and it will the bad job will run and it will be gone if you go back and just refresh it you will see that the journ are here now the vouchers are here now so the voucher is very very simple in this particular case um like we have seen in the in the previous uh invoice uh Journal uh voucher um it gets credited to the vendor and it gets debited to the acral account this called purchase expenditure for expense account so it's an expense account so the account number is this and it's getting debited to that particular account so how do we get this account number number is we've already did all this setup in the past so um if you go to the inventory management uh posting posting and purchase section here uh purchase expenditure for expense we did have a category and normally I use category all but in this case I used category vehicle uh our expense that is our category is under cleaning it actually falls under vehicle it's the parent node so for all the vehicle this is the main account so the cleaning falls under this node so that's why this main account is impacted and it's getting posted there so it's getting debited right