Category: Payments

Finance User Manual ENG -> 3. Payments -> 3.3 Finance Payments and Registers

LUFI-30301 Register Entries Statuses

LUFI-30302 Cash Registers

LUFI-30303 Cheque Registers

LUFI-30304 Bank Registers

LUFI-30305 Direct Entries Booking

LUFI-30306 Cheque Entries Imported into a Bank Register

LUFI-30307 Direct Invoices

LUFI-30308 Register Entries and Journal Posting

LUFI-30309 Actions in Register Entries

INTRODUCTION: FINANCE PAYMENTS AND REGISTERS

Registers are used to encode all accounting entries linked to cash movements. These entries are called Register lines. Registers should be used any time a cash movement occurs.

Any time a register line is made on an expense or income account, the analytical distribution needs to be determined. This is performed by means of the analytical wizard button , located at the register line level.

The following transactions can be performed through the registers:

• Direct expenses
• Direct Invoices, using the {Direct invoice} button
• Guarantees or deposits
• Down payments to a supplier, linking a PO to an advance
• Internal Transfers
• Supplier Invoice, tax and Payroll Payments, using the {Pending payments} button
• Cash and bank reconciliations
• Operational Advances, using the {List of open advances} or {Advance return} button

Cash, bank and cheque registers need to be reconciled at the end of each period. At the end of each month the user needs to close their register(s) and create new registers for the following month. All existing cash and bank registers created for the new period are populated with an opening balance automatically set to the previous periods’ closing balance.

Users have the ability to work on several periods at the same time as the following period’s register opening is not linked to previous period’s register closing. This means, a new register can be opened before the previous one is closed BUT a new register can’t be closed before the previous period’s register is closed. Also, a new register can’t be opened if the previous one is still in {Draft}.

The liquidity journal associated with the register remains open at all times.

Finally, a register Search view will display a list of registers as shown below. You will be able to use a set of filters to easily retrieve the register in which you want to record your entries.

Search view and corresponding filters

Finance User Manual ENG -> 3. Payments -> 3.2 Purchase to Payment Process: Supply&Finance Links -> LUFI-30207 Supplier Invoice Payment: Step Five in the Purchase Process

LUFI-30207 Supplier Invoice Payment: Step Five in the Purchase Process

LU Introduction

A supplier invoice can be paid from the cash, bank or cheque registers via the {Pending Payments} function. In order to make the payment, the supplier invoice must be imported into the appropriate register. Importing the payment into the register automatically creates a temp posted register entry. In the liquidity journal, the payable account is debited to cancel the debt and the liquidity account (cash, cheque or bank depending on type of payment) is credited to recognize the money out.

Note that a supplier invoice can be paid before the invoice posting date provided the payment is done in the same (monthly) period or in a later period.

How to Import a Supplier Invoice into a Register

In the below example the payment is done in a cash register.

Go to: Accounting / Registers

1. Open the relevant register to import the invoice
2. Click on the Button {Pending Payments}

Pending Payments invoice on a register form

An {Import invoice} window display

3. Click on {Add} and select the relevant invoice.

Add button to select an invoice

Search Account Entry Lines window opens to select the invoice to import in the register

4. Remember the PO/Supplier invoice process we saw before. Here, we will import only the supplier invoice booked on the Trade Payables account. The VAT will be paid later on.

5. Add a Payment posting date and click on {Single import} because in this illustration we only have to import one invoice from one supplier.

Invoice imported in the Import Entries window

6. The invoice moved down to the bottom half of the {Import Invoice} window. Changes can be made here as well. However, the document date must be changed on the top screen. If making a payment through the cheque register, the cheque number will need to be entered. Once verified, click {Ok}. The window closes.

An entry is created in the register and booked to {30020 – Trade Payables} to pay the amount owed to the Supplier. The description defaults to {Imported Invoice}. The reference is automatically retrieved from the reference of the supplier invoice. There is no automatic reconciliation on the A/P account until the register line is hard posted.

Payment entry displayed in the register in Temp state

7. The link will take you to the supplier invoice; if user clicks on this line, the Supplier Invoice list view will display.

Invoice Lines displays when the link is clicked in Register. Click on line to open Supplier Invoice.

As soon as the supplier invoice is imported, the register line is Temp posted and the entries created in the liquidity journal items are:

• Credit to 10100 Cash on Hand (the invoice was imported into a cash register) to reduce the cash balance by the amount of the invoice.
• Debit to 30020 Trade Payables to reconcile the outstanding A/P entry created when the supplier invoice was validated

Once the register entry is hard posted, the payable entries are reconciled (M1-8). The supplier invoice status changes to {Paid}.

The entry corresponding to the imported invoice was hard posted.The entry state is Hard.

Created Journal Items of the paid supplier invoice when the register line became hard posted.

Supplier Invoice becomes paid when its corresponding register entry is hard-posted

In case you want to import several invoices from the same supplier in one entry, you can use the {Import Group by partner} function.

Selection of 2 invoices to pay to a same supplier before importing in a register

Invoices references are displayed in the Ref. field

Register line reflecting the import of 2 supplier invoices.

In case there are more than 3 invoices embedded in the payment, all references may not be fully displayed in the payment reference field as the system will cut off the text string to bypass display issues. But the payment will be processed for all selected invoices.

Finance User Manual ENG -> 3. Payments -> 3.2 Purchase to Payment Process: Supply&Finance Links -> LUFI-30206 Supplier Invoices and VAT

LUFI-30206 Supplier Invoices and VAT

LU Introduction

In chapter 02 – Configurations, we have seen how a VAT code was set in UniField.

Once a VAT code is set, you can :

• Associate a VAT to a product in the product form (LUFI-20902). We explained it in Chapter 2 – Configuration.
• Associate automatically a VAT to a whole invoice.

Now we will see how to compute a VAT code on a Supplier Invoice when the code was associated to a product.

How to Apply a VAT Code to a Supplier Invoice When the VAT Is Associated to a Product

Go to: Accounting/Suppliers/Suppliers Invoices

1. Select to open a new invoice form.
2. Complete the mandatory blue fields and allocate the invoice lines to analytic accounts. Make sure the product you chose is associated to a tax code.
3. Select {Compute Taxes} to calculate the VAT applied to this invoice.

Compute Taxes button for automatic calculation of the VAT applied to this invoice

The tax displays automatically.

The tax is calculated automatically. Amount excluding and including VAT are split.

4. Now suppose you want to validate the supplier invoice. Select the {Validate} button.

In the Purchase journal, entries are booked as follow:

Posted journal entries when an invoice to which a VAT is applied is validated

• Box 1: On the Debit side:

– Expense accounts, 61150 corresponding to the invoice lines

– VAT Recoverable account, 12020

• Box 2: On the Credit side:

Trade Payables account, 30020 corresponding to the outstanding debt towards the supplier (including VAT)

Advice: Supply or Finance can write down the UniField invoice number on the hardcopy invoice provided by the Supplier to make cross-referencing easier.

How to Apply a VAT Code to a Whole Invoice

It is possible to assign a VAT code directly to a whole invoice if you choose not to link a product to a VAT code. In this case, the VAT code has to be “excluded from price” type meaning that the VAT amount is always fully applied on top of the invoice line amounts.

Go to: Accounting/Suppliers/Suppliers Invoices

1. Select to open a new invoice form.
2. Complete the mandatory blue fields and allocate the invoice lines to analytic accounts.
3. Select to populate the invoice amount.
4. Go to the Taxes section and select to link the invoice to a tax code

{New} button to insert a tax code applicable to the supplier invoice

5. In the {Tax} field, select a tax code set in the system using the magnifying glass

TAX code selection and automatic input of TAX DESCRIPTION, ACCOUNT and AMOUNT field

The {Tax Description}, {Tax Account} and {Amount} fields are populated automatically

6. Save

7. Save the form 

8. Press

9. Finally, you can manually input a tax code in the Tax section:

• From step 4, in the {Tax Description} field, input a description
• In the {Tax Account} field, select the account Tax recoverable
• In the {Amount} field, insert the VAT amount calculated manually, usually based on the untaxed amount

Manual input and calculation of the VAT

• Save
• Press
• Save 
• 
• the form 

Finance User Manual ENG -> 3. Payments -> 3.2 Purchase to Payment Process: Supply&Finance Links -> LUFI-30205 Supplier Invoices Manually Created by Finance

LUFI-30205 Supplier Invoices Manually Created by Finance

LU Introduction

Previously, we explained the automatic creation of supplier invoice through the purchase process initiated by supply. In addition, finance can create a supplier invoice as a stand-alone invoice in the Accounting Suppliers sub-module when finance is paying for goods or services not purchased by supply. Items listed on the manual supplier invoices will not be reflected in the UniField warehouse stock.

The validation of a manual supplier invoice automatically creates the expense and payable entries in the purchase journal.

B. How to Create Supplier Invoices Manually

Creating a supplier invoice in the {Supplier invoice} Search view

Go to: Accounting/Suppliers/Supplier Invoice

1. Click on {New} to create an invoice

A form displays to create a new invoice. Fields in blue are required; white fields are optional; grey fields are read only.

{Supplier invoices} header

Title of field	Entry protocol: supplier invoice	Source for Information
Journal	System default	Journal in which the entries will be booked
Number	System default	UniField invoice number to be assigned when the invoice is validated
Currency	System default	The currency is by default selected based on the {Supplier} selected for the invoice
	Button	You have 2 options to manage the supplier invoice currency:   Either you overwrite the default currency with the currency you wish to use and if you already created invoice lines, amounts will not be computed again Use this button to change the currency of the invoice if the default currency from the Supplier record is not correct. Amounts already recorded on the invoice will be computed again using the standard rates defined in the system.
Supplier	User selected	From Suppliers list
Invoice Address	System default	From Supplier selected for invoice
Fiscal Position	System default	Depends on specific OC procedure
Document Date	Manual entry	Date of invoice
Posting Date	System default	Defaults to the date of the incoming shipment that has been entered. It can be changed

is used to apply a global analytic distribution across all lines in the invoice. This can be used as a time saver if all lines on the invoice use the same destination, funding pool, cost center, etc. If most of the lines have the same information it is possible to use the analytical distribution line to allocate all and then individually update the few lines with variances.

2. On the {Invoice} tab, you complete additional fields as explained below

Invoice tab on a supplier invoice

Title of field	Entry protocol: supplier invoice	Source for Information
Account	System default	From Supplier selected for invoice
Free Reference	Manual entry	Indicate the invoice number of the hardcopy supplier invoice. It will be displayed in the reference field of the payment line.
Due Date	Manual entry	When the payment is due; some suppliers require net 30, net 60 or immediately upon receipt or a certain due date. This is good to enter if you want to search for open invoices based on due date.
Supplier Reference	Automatically taken from Supplier form	If the Supplier reference is filled out in the Supplier form, it will automatically be taken into this field
Total	Manual entry	To be entered right before validating the invoice and should match the calculated total of the invoice lines; this is just a check for the user to confirm the total amount

3. In the {Invoice Lines} section, click {New} to create a new invoice line.

Example: In February we have received an invoice from the company TTE for printer. The printer and cables are used by two different projects. Thus, we want our invoice to have 2 invoice lines allocated to 2 different projects.

{New} button to input invoice lines

{Invoice Line} window to add line items on a manually created Supplier Invoice

Title of field	Entry protocol: supplier invoice	Source for Information
Product	Manual entry	From the Product list used by Logistics
Unit of Measure	Manual entry	From the list used by Logistics
Quantity	Manual entry	For services, use “1”; for goods, use actual quantity
Unit Price	Manual entry	For services, enter total amount that will be booked to this invoice line; for goods, use actual price
Discount (%)	Manual entry	% discount applied if applicable
Description	Manual entry	Similar to the current description in use
Account	Manual entry	Expense account code
Distribution	System default	View only; will display Valid or Invalid after analytical distribution has been applied
Account Tax	Manual entry	Please see individual OCs financial procedures and input a tax accordingly

4. Click {Save & New} button for additional invoice lines, or {Save & Close} button to return back to the supplier invoice window.

5. Assign the analytical distribution per line or globally across all invoice lines.
Valid analytical distribution on invoice lines

6. Enter {Total} and verify that it matches the total on the hardcopy invoice.

7. Click {Save} button.

The invoice is created in {Draft}, viewable at the bottom of the document.

Invoice state viewable at the bottom of the document

Further, the {Other Info} tab shows the {Amount to be paid} on the supplier invoice which could be adjusted through changes or partial refunds to the original amount. The {Journal Entry} is a link to the entries in {Journal Items} associated with the supplier invoice once the invoice is validated. {Responsible} identifies the user who validated the invoice. The other fields come by default from the supplier record if that information had been entered.

{Other Info} tab

The {Payment} tab will show payments made for this supplier invoice. Thus it could show for instance an advance delivered to a third party (down payment), if so it will be displayed in the down payment tab too.

{Payments} tab of a Paid supplier invoice

Finally the {Down Payment} tab as you might expect displays advance payments done to suppliers.

Down Payments tab of a supplier invoice

For editing, validating and printing a supplier invoice created manually, please read LUFI- 30104 as the tasks description are identical.

How to Delete Manually Created Draft Supplier Invoices

Go to: Accounting/Suppliers/Supplier Invoices

1. Search for the draft supplier invoice to delete either by selecting the {Draft} filter or any other filter located at the top of the view.

Delete button to erase a draft supplier invoice in the Search Supplier Invoices view

2. Locate the draft supplier invoice to edit, and select the red cross to delete the supplier invoice.

Finance User Manual ENG -> 3. Payments -> 3.2 Purchase to Payment Process: Supply&Finance Links -> LUFI-30204 Supplier Invoices: Step Four in the Purchase Process

LUFI-30204 Supplier Invoices: Step Four in the Purchase Process

LU Introduction

A draft Supplier Invoice is created in UniField when the Incoming Shipment is validated. The quantities to the supplier invoice are coming from the incoming shipment, while the prices are coming from the purchase order.

The supplier invoices in {Draft} status can be edited. Finance can review and edit all allocation (accounting code and analytical distribution) before validation as all fields can be modified on the invoice line. From the accounting side, it is important to check if the account code and analytic distribution are assigned correctly.

In general, user will compare the hardcopy invoice from the supplier against the supplier invoice in UniField and make any corrections if needed before validation.

As some fields are linked to Supply POs, they should be changed only after an approval from supply. For example, if the products, quantities or prices on the paper invoice are different from the system invoice, then supply should inform finance that these changes are correct. Only then should Finance correct the price or quantity.

The validation of the supplier invoice changes the invoice status from {Draft} to {Open}, sets the related commitment voucher to {Done} or updates the amount left accordingly, deletes ENG journal entries and creates the expense and payable entries in the PUR journal.

Validating the supplier invoice does not affect the balance of the register. This means that the recognition of the expense and of the supplier payable is booked upon receiving the goods and the paper invoice but the invoice can be paid at a later point of time. The register balance is affected only at the time of payment.

Status of Invoice	Stage in Process	Status in Journals	Modification allowed?
Draft	Invoice initially created	None	Yes, Edit invoice
Open	Invoice validated and imported or not into Registers   as temp posted	Valid / Posted	Yes, only through a correction – Chapter 5
Paid	Invoice validated and imported into Registers   and hard posted	Valid / Posted	Yes, only through a correction – Chapter 5

Supplier Invoice Statuses

How to Edit Draft Supplier Invoices

Go to: Accounting/Suppliers/Supplier Invoices

1. Search for the draft supplier invoice to edit either by selecting the {Draft} filter or any other filter located at the top of the view.

Draft supplier invoice

2. You can use the {Pencil} to change the account, description, quantity, amount or tax on the invoice line level, select. When you are finished with the changes, select

3. or you can use the {form} for the same modification but it will give you more details.

4. To change the analytical distribution, click on on line level or globally using the button

5. Add a Due date (optional) and a Document Date if it is not done yet.

Edit button located on each invoice line, document date and due date fields

6. Click {Save} button. The supplier invoice is saved in {Draft} state.

Note! A quick way to edit the analytical distribution on a Draft supplier invoice is to select the button located on the Supplier Invoice header. It allows removing all analytic distributions done at line level so that the header distribution prevails.

How to Split Supplier Invoices

Sometimes a Purchase Order containing several different products is invoiced with multiple physical invoices. In these cases you can split a draft Supplier Invoice into multiple invoices.

Go to: Accounting/Suppliers/Supplier Invoices

1. Locate the draft supplier invoice to edit, and select to open the supplier invoice form.
2. In the bottom of the invoice, press
3. Screen “Split invoice” will be displayed, Select the lines to be split ; the wizard will create a new invoice and adjust the original one.

4. Select the invoices lines to be deleted

5. Delete the lines from button “Delete”

7. Click “Confirm” as below

8. After deletion “ Confirm”

9. The deleted lines will create new invoice as below:

How to Import/Export Invoice Lines in the invoice objects.

You can Export the invoice lines from the supplier invoice through {Export Invoice Lines}. You can modify several fields in the Export file including the amounts and descriptions, and you can import the file (for invoice lines) through {Import Invoice Lines}.

• If the invoice line has been split, you will have the word “SPLIT” in the excel file and the analytical distribution will be empty.

• If we try to import incorrect values (cost center that does not exist, mandatory values not reported…), the import will fail, and we will have error messages:

Split invoice lines through import:

If more than one line of the Supplier Invoice needs to be split, this can be done as detailed below:

• Open “Supplier Invoice”
• Click on button “Export Invoice line”
• In the exported file update columns from H to K which covers respectively (Percentage, Cost center, Destination and Funding Pool)
• The split must be with semicolon (;) character, in column percentage update with numbers, then other columns will take the percentages according to column percentage respectively, see below:

• Import the update file through “Import Invoice line”
• Click on “Invoice Allocation” it will produce “INCOICE LINES ALLOCATION REPORT” the same allocation as what exported as below:

How to Validate Supplier Invoices

When the invoice is in {Draft} and reviewed, it can be validated.

Go to: Accounting/ Suppliers/Suppliers Invoice

1. Search for the draft supplier invoice to validate either by selecting the {Draft} filter or any other filter located at the top of the view.

Supplier invoices Search view

2. When the invoice is located, click on the pencil to open the form.

3. Validate it by pressing

The invoice state becomes {Open}.

Validation of the invoice automatically deletes the engagement lines created by the commitment voucher as the promise to pay is now a formal obligation represented by the automatic creation of a payable entry in the Purchase Journal.

Posted journal items resulting from the validation of a supplier invoice. In this example, the VAT is recoverable.

In the Purchase journal, entries are booked as follow:

1. On the Debit side:

Expense accounts, 61150 corresponding to the invoice line

VAT recoverable, 30300 (the VAT was added on invoice level)

2. On the Credit side:

Trade Payables account, 30020 corresponding to the outstanding debt towards the supplier

Advice: Supply or Finance can write down the UniField invoice number on the hardcopy invoice provided by the supplier to make cross-referencing easier.

How to Print Supplier Invoices

Go to: Accounting/Supplier Invoices

1. Tick the box of the invoice you want to print.
2. In the Action Menu on the right side of the screen, in the section {Reports}, select {Print report}.
3. A PDF report will display the invoice details.

The columns {Description} and {Source Document} will be filled only if the supplier invoice originated from a supply flow.

Supplier invoice report displayed. This invoice is Open.

Finance User Manual ENG -> 3. Payments -> 3.2 Purchase to Payment Process: Supply&Finance Links -> LUFI-30203 Confirmation of Goods: Step Three in the Purchase Process

LUFI-30203 Confirmation of Goods: Step Three in the Purchase Process

LU Introduction

When the goods are received, supply processes the reception in the UniField warehouse sub module. Supply confirms product item and quantity received, and makes changes if needed, e.g. change in product, etc. The supply validates the incoming shipment (it becomes closed) and a draft supplier invoice is created.

Validation of the incoming shipment results in three actions in UniField:

• Reception is closed.
• Supplier Invoice is in {Draft}, waiting for validation.
• Internal picking is ready to process so the goods can be used.

Supply identifies Incoming Shipment for reception

Supply processes Incoming Shipment

Logistics validates Incoming Shipment. Reception is Closed and a Supplier invoice is generated

Finance User Manual ENG -> 3. Payments -> 3.2 Purchase to Payment Process: Supply&Finance Links -> LUFI-30202 Commitment Vouchers: Step Two in the Purchase Process

LUFI-30202 Commitment Vouchers: Step Two in the Purchase Process

Finance User Manual ENG -> 3. Payments -> 3.2 Purchase to Payment Process: Supply&Finance Links -> LUFI-30201 Purchase Order: Step One in the Purchase Process

LUFI-30201 Purchase Order: Step One in the Purchase Process

LU Introduction

A Purchase Order is a procurement document created, validated and confirmed by supply which lists the requirements of products requested to a given supplier.

Purchase Order type regular with external partner

Product

Product data is part of the master data loaded at installation and is shared by all OCs. Each product has a category assigned by default. Each OC has the capability to add new products and assign the appropriate category. The expense code is picked by default based on the product category of the product selected. (Further exPlanation on Products can be found in Chapter 2 Configurations).

The expense account code is not visible on the PO. Supply cannot change the account code. Finance can’t modify the account code on the related commitment voucher but can modify and confirm it when validating the supplier invoice.

Analytic Distribution

The Analytic Distribution (AD) on the PO is fill in by the supply department and can be assigned and split per order line by clicking or globally using the button. In supply, the analytic distribution input only consists of destination and cost center. The AD is also displayed in the PO allocation report. If necessary, finance can change any of this information on the commitment voucher and supplier invoice.

Analytic distribution wizard

If AD is allocated on line level, the default destination is set up according to the expense account code in the chart of accounts. In the global AD, destination needs to be inserted manually.

The cost center field is a manual input. There is no funding pool assigned on the PO level.

Taxes

There is a tax part in the PO (the same part as we have already in the Supplier invoice).

Go to PURCHASES > Purchase Management > Purchase Orders:

• Click Edit “yellow pen” in any PO
• Click on tab “invoices”
• There is a box added in the bottom named “Taxes”

To consider the points below:

• The box “Taxes” is available for the external PO only.
• If relevant, there is a new button on PO footer to remove the taxes at line level.
• Adding a tax line or removing it, will affect in the total amount of PO.
• SI Tax corner is populated from the PO Tax box.

Validating the PO

The PO is in Draft state until the Logistics user clicks “Validate” either on an individual PO line or at header level. The different PO lines can be validated at different points of time.

Following specific OC procedures, supply has the option to print out the PO in order to get the necessary approvals to comply with the authorization table.

PO printed out for approval of a purchase of paper

Confirming the PO

The PO lines can be changed to {confirmed} after all necessary approvals for the PO have been received and after the delivery dates are confirmed with the supplier. Different PO lines can be confirmed at different times – each line can be assigned a different “Delivery Confirmed Date”. When some of the lines are confirmed while others are still in draft, the PO status remains in {draft-p}. The status will change to {Confirmed} when all lines within the same PO have been confirmed. Confirming an individual PO line or the whole PO results in the following actions in UniField:

• A new Commitment Voucher is created or an existing one is updated
• Purchase order line is confirmed.
• Reception is ready to process.

How to Check Analytical Allocation on a PO

Finance users with the appropriate user rights can check if the cost center and destination accounts assigned to a PO are correct. Check your OC’s procedures.

Go to: Purchase/Purchase Management/Purchase Orders

1. Select a PO, open the Action menu.

{Allocation report} functionality

2. Select “Allocation report”

A PDF report will display

PO lines allocation report for a purchase order

Purchase Order Types

Order type on POs

Types of Purchase Orders:

Regular Purchase Order: General PO which must be attributed to a specific supplier, which can be internal, intersection, intermission or external.

• External partners: PO line approval triggers a Commitment Voucher in the budget corresponding to the cost centers selected in the analytic distribution. When goods are received and the incoming shipment validated, a draft invoice is created; when it is validated, the commitment voucher is updated or set to done and the corresponding expenses are recognised and reflected in the financial and analytical journals.
• Internal partner: At project level a Regular PO is created on the project’s cost center. The partner type is {Internal}. When validation and synchronization are done at project and coordination level, the PO is received as a Field Order (FO) in the coordination instance. An incoming shipment is ready to be processed at project level if the delivery is programmed to happen there. No commitment voucher is created at the project instance. Here we have 2 possibilities:

1. Coordination sources the need externally:
   • Another PO is created to an external supplier (automatically linked to the FO) and the analytical distribution is allocated to the project.
   • Once approved, the engagement is reflected in the project’s budget.
   • When the delivery is confirmed either in the project or coordination instance, coordination settles the invoice and expenses the goods directly to the project (financial move at coordination level but the coordination budget is not impacted, as the expenses are registered on project cost centers)
   • The validation of the reception of goods closes the initial PO at project level (no financial move at project level but the project budget is impacted, as the corresponding expenses are reflected at project level)
2. Coordination uses existing stocks:

In this case there is no cost reallocation unless user creates a manual entry to reallocate goods on the cost centre corresponding to their consumption. This operation has to be done according to your OC policy and should only concern material amounts.

• Inter-section: An inter-section transaction is performed in both instances in EUR. PO approval from one coordination to another coordination from a different section does not trigger a commitment voucher. A financial document called {Stock transfer voucher} will be created at the delivery instance, comparable to a customer invoice in a standard system.
• Inter–mission: An intermission transaction is performed in both instances usually in functional currency. A commitment voucher is created in the delivery instance making the purchase to an external supplier (if not sourced from stock) and cost can be either allocated to a specific cost center {inter-mission} or to the cost center receiving the goods. A financial document called {Inter-mission voucher OUT} is created at the delivery instance and {Inter-mission voucher IN} at the recipient instance.

Purchase List is a Regular purchase order not attributed to a specific supplier but to a default {Local Market} partner. The {Local Market} supplier can be changed to a different vendor. It is normally used for products bought at the local market with an operational advance. No commitment voucher is created because purchase lead time is short and amounts are not significant vs. total budget

Direct Purchase Orders (DPO) is used when the order is delivered to a different instance than the requesting instance: Project places and order to Coordination (PO internal partner) and Coordination places an order to an external supplier requesting to deliver the goods directly to the project (DPO). Financial impacts are slightly different from regular orders. The trigger for the commitment voucher and draft invoice creation is the DPO (lines) confirmation at Coordination level as the invoice is be paid from the ordering instance (Coordination) and the delivery done at project level.

Donation before Expiry is usually an internal transaction. This donation type is a “forced” Field Order (FO) of a UniField instance to another partner. The giving instance creates a FO type {Donation before Expiry} that automatically creates a “Donation before expiry” PO in the receiving instance. The PO is closed once goods are received. There are no accounting movements (no commitment voucher or invoice created). The goods remain expensed in the donating instance. In principle a “gift certificate” needs to be issued by the giving instance. The recipient instance registers this transaction as a donation before expiry.

Standard donation is a PO usually used for an internal or inter-section transaction. UniField behaviour is identical to a Donation before expiry. There are no accounting movements.

In-Kind Donations (only received) are for free-of-charge goods provided by donors (i.e. mosquito nets from Unicef). The creation of an {in-kind donation} PO triggers the creation of an incoming shipment ready for approval. Finance has to check if supply has selected a partner linked to an account type 81 {Contribution in kind} in the Donation Payable Account, either for medical or non-medical goods. To validate the reception, the supply users should attach a donation certificate from the donor (check your OC’s procedure). The validation of the reception triggers the creation of a financial document called {Draft Donation Received} accessible to financial users only in the supplier invoice sub module. Once reviewed financial users can validate it and set the document to “Open”. This action creates extra-accounting entries in the {in-kind donations} Journal and off-balance sheet accounts classes 81 and 91 (Contribution In-kind).

Cancellation of Donation Received created through supply process

1. Not allowed to delete with the red X the IKD (In-kind Donations) lines as far as the IKD is from supply:

Go to Accounting > Suppliers > Donation Received

• Select any of draft IKD
• Try to delete from red X
• You will receive message “Cannot delete invoice(s) generated by a Supply workflow”

2. To cancel the IKD (In-kind Donations) through button “Cancel document”

To do:

• Select any draft the IKD (In-kind Donations) , edit from yellow pen
• Click on below tab:

• Deleted IKD (In-kind Donations) will not be removed ,will appear in grey color when click on the header button “Cancelled”

3. To split donation through button “Split Donation” as the following:

• Select any draft the IKD (In-kind Donations) , edit from yellow pen
• Click on below tab : 

• It will appear new window “ Split Donation”
• Tick on IKD (In-kind Donations) should split and remove by clicking on button “Delete”, then “Confirm”
• The deleted lines of IKD will create new draft the IKD (In-kind Donations) with the same details of “Description” and “Source Document”

4. New tabs created in Donation “Export Invoice Line” and “Import Invoice Line” by exporting the lines and importing negative amounts for the correction inorder to book the correction in “IKD Journal” not “ ODX Journal”

5.Possibility to change product, account, quantity, unit price and description of a donation coming from a supply flow

Users should allocate in-kind donations to the “MSF private funds” funding pool so as to exclude them from Donor reporting.

Manual Donation is only a financial document that does not have a link to the purchasing process. Manual Donations do not impact the inventory levels of products. A manual donation can be created directly in the Accounting / Suppliers / Donation Received sub module. Please note, only accounts with a Type for specific treatment: “Donation” (8 and 9 accounts) can be used. Also, only the Journals “In Kind Donation” and “OD-Extra Accounting” are selectable to record the manual donation entries.

Loan

A loan is a PO usually used for an internal partner borrowing goods from another instance. These goods are expected to be returned. At borrowing side A, an approved {Loan} PO is created and automatically triggers the creation of a PO at B side to make sure the borrowed goods will be returned at some point. There are no financial impacts as the goods are meant to be returned.

Finance User Manual ENG -> 3. Payments -> 3.2 Purchase to Payment Process: Supply&Finance Links.

LUFI-30201 Purchase Order: Step One in the Purchase Process

LUFI-30202 Commitment Vouchers: Step Two in the Purchase Process

LUFI-30203 Confirmation of Goods: Step Three in the Purchase Process

LUFI-30204 Supplier Invoices: Step Four in the Purchase Process

LUFI-30205 Supplier Invoices Manually Created by Finance

LUFI-30206 Supplier Invoices and VAT

LUFI-30207 Supplier Invoice Payment: Step Five in the Purchase Process

INTRODUCTION TO PURCHASE TO PAYMENT PROCESS: SUPPLY & FINANCE LINKS

Purchase to Payment Process: Supply & Finance Links.

UniField integrates the ordering/procurement/supply/warehouse processes managed by the Logistics department with the budgeting/payment/financial management processes performed by the Finance department. This all-in-one program provides better transparency between the two departments and views the ordering to cash process as one.

The below figure summarizes the workflow between Supply and Finance in UniField at the time of placing a regular order to an external partner.

A regular type of Purchase Order with external partner and its impact on Finance

The purchase process may contain additional steps prior to the Purchase Order creation. As they do not impact Finance, we will detail the Order to cash process in UniField starting from the Purchase Order:

1. SUPPLY: Purchase order is created and validated in the Purchase Module after assigning an accounting code (automatic with the product selection) and an analytical distribution. For further information: LUFI-30201 Purchase Order: Step One in the Purchase Process.
2. FINANCE: Commitment Voucher is automatically created in the Accounting module. Finance to validate. For further information: LUFI-30202 Commitment Vouchers: Step Two in the Purchase Process.
3. SUPPLY: Arrival of Goods confirmed in the warehouse module. For further information:   LUFI-30203 Confirmation of Goods: Step Three in the Purchase Process.
4. FINANCE: Supplier Invoice is automatically created by UniField. Supplier Invoice confirmed and validated by Finance. It sets the related Commitment Voucher to done and books the expenses and the debt in the journals. For further information: LUFI-30204 Supplier Invoices: Step Four in the Purchase Process.
5. FINANCE: Payment done by importing the Supplier invoice into the register by Finance. For further information: LUFI-30205 Supplier Invoices manually created by Finance

Finance User Manual ENG -> 3. Payments -> 3.1 CHAPTER OVERVIEW: Payments

3.1 CHAPTER OVERVIEW

UniField operates under the basic principles of double-entry bookkeeping system moving MSF closer to international accounting standards. For example, when a supplier invoice is sent to MSF after the goods have been ordered and finally received in stock, the expense is booked with its counterpart set as a MSF debt to the external supplier and before any money actually leaves a MSF cash, cheque or bank account.

The following example shows what happens in the journals when the supply team creates a purchase order for Paper in account “61220 – Supplies, stationery and other consumables”. After the supply team confirms the goods have arrived in the warehouse module, UniField automatically creates a supplier invoice.

When the finance team validates this supplier invoice, UniField automatically creates two entries in the journals:

• Debit to the expense account “61220 – Supplies, stationery and other consumables”
• Credit to the “30020 – Trade Payables” to show a debt owed to the supplier

Journal Entries once a supplier invoice is validated

When Finance makes the payment, they import the supplier invoice into a register. In the journals UniField automatically:

• Debits the account “30020 Trade Payables” to cancel the debt owed to the supplier because MSF no longer owes anything to this supplier. This entry is automatically reconciled with the original 30020 entry.
• Credits the “10100 – Cash at Hand, 10200 – Cash at Bank, or 10210 – Outstanding Cheques” depending on which payment means was used. This entry automatically reduces the balance of the register.

Journal Entries once a supplier invoice is paid in cash. The register line is hardposted

In the Register, only one line is created for the one payment made to the Supplier

The purchase process and link with payment as well as the link between registers and journals will be explained in greater details in this chapter.

We will also see how to manage the register entries according to their state and finally address how to handle different kinds of payments such as direct entries, internal transfer, operational advances, and payments between missions and sections.

After completing the reading of this chapter you will be able to:

1. Understand the link between finance and supply and documents generated in the purchase process
2. Manage supplier invoices
3. Manage direct entries and direct invoices in the registers
4. Post entries in the journals
5. Manage specific payments such as advances to suppliers and employees, as well as intermission and intersection payments