Overview

NorthScope allows users to enter basic accounts payable invoices that integrate as payable transactions within the host system, if the integration is turned on. These transactions are used to record invoices that the user will need to pay. This transaction does not use inventory items, or integrate with NorthScope’s Inventory module. Invoices can be recorded in either NorthScope or the host system. However, a NorthScope invoice provides additional capabilities, such as recording line item details and allocations against financial projects, fishermen, tenders, and employees.

Prerequisites

Required Prerequisites

Before entering an invoice transaction, users must complete the following:

• Vendor Setup
• Financial Account setup

Optional Prerequisites

The following prerequisites are not required, but users are encouraged to set them up:

• Projects. Set up projects if licensed for Project Accounting to track expenses against.
• Employees. Set up employees to distribute line items to employees.
• Set the purchasing preference for “Default Account – Settlement Accrual”. This will ensure that transactions will still post if the settlement account has not been manually configured for each fisherman or tender.
• Set the integration setup for AP Invoice/Credit Memo in the Company module.
• Attributes Setup for AP Purchasing - Invoice Transaction.

Understanding the data flow

There are 4 types of Invoices that can be entered in NorthScope. 

Traditional

A traditional invoice occurs when the user is entering an invoice from a vendor and none of the line items are being distributed (the “Distributed To” field is not assigned). When the transaction status is changed to “Ready to Post,” a Payables Transaction Entry is created in the host system’s Purchasing module, if the integration is turned on.

Each of these transactions contain the journal details for a typical invoice transaction with the debit account(s) coming from the line item "Purchase Account" of the transaction and the credit account defaulting from the Vendor's “Settlement Accrual” account.

To view the data flow of traditional Invoice transactions, click here. 

With Project Distribution(s)

An invoice with Project Distributions occurs when the user is entering an invoice from a vendor and one or more of the line items is being distributed to a Financial Project. When the transaction status is changed to “Ready to Post,” a Payables Transaction Entry is created in the host system’s Purchasing module, if the integration is turned on.

Each of these transactions contain the journal details for a typical invoice transaction with the debit account(s) coming from the line item "Purchase Account" of the transaction and the credit account defaulting from the Vendor's “Settlement Accrual” account.

In addition, each line item that was distributed to a Financial Project will create a detail transaction in the Financial Project to update the project’s balances.

This type of transaction requires the Financial Project feature to be licensed.

To view the data flow of Invoice transactions with project distributions, click here. 

With Fisherman or Tender Distribution(s)

An invoice with Fisherman or Tender Distributions occurs when the user is entering an invoice from a vendor and one or more of the line items is being distributed to a fisherman or tender. When the transaction status is changed to “Ready to Post,” a Payables Transaction Entry is created in the host system’s Purchasing module, if the integration is turned on.

Each of these transactions contain the journal details for a typical invoice transaction with the debit account(s) coming from the line item "Purchase Account" of the transaction, which will default from the distributed to fisherman's or tender's 'Settlement Accrual' account, and the credit account defaulting from the Vendor's “Settlement Accrual” account. 

In addition, each line item that was distributed to a fisherman or tender will create a corresponding settlement transaction in NorthScope, due from the fisherman/tender. 

This type of transaction requires the Seafood Purchasing feature to be licensed.

To view the data flow of Invoice transactions with fisherman or tender distributions, click here.

With Employee Distribution(s)

An invoice with Employee Distributions occurs when the user is entering an invoice from a vendor and one or more of the line items is being distributed to an employee. When the transaction status is changed to "Ready to Post," a Payables Transaction Entry is created in the host system's Purchasing module,  if the integration is turned on.

Each of these transactions contain the journal details for a typical invoice transaction with the debit account(s) coming from the line item "Purchase Account" of the transaction, which will default from the distributed to employee's 'Accounts Receivable' account, and the credit account defaulting from the Vendor's "Accounts Payable" account. 

In addition, when the transaction status is changed to "Ready to Post" an Arrears Transaction Entry is created in the host system's HR & Payroll module for the distributed employee under the Employee Purchases deduction code. 

To view the data flow of Invoice transactions with employee distributions, click here.

Step 1: Entering the Transaction in NorthScope

Entering a new transaction

From NorthScope, expand the Purchasing Module on the navigation menu and select "Invoices". This will open the Purchasing Invoices List View which displays all Invoice and Credit Memo transactions with a status of New, Approved, or Ready to Post.

Click the "New" icon in the header toolbar and select "Invoice" to open a blank record view.

Complete the header fields

• Amount: This is a calculated field that is updated on save. This is not editable.
• Description: Enter a description of the invoice. This field is not required.
• Doc Date: Enter the invoice date. The date defaults to the current date but can be edited. This field is required.
• Doc No: Enter the transaction number. This field is required and must be unique by Invoice/Credit Memo and vendor combination - meaning that no two credit memos and/or invoices for the same Vendor may have the same Doc No. 
• GL Date: Enter the date the invoice will affect the general ledger. This date defaults to the current date but can be edited. This field is required.
• Payment Terms: Select the payment terms or skip this step to use the vendors default payment terms.
• PO: Enter the purchase order used to place the order. This field is not required.
• Status: This field is to select the status from the following options:
  • New - This is the default.
  • Approved - Used when there is a two-step process for finalizing transactions. Setting the status to “Approved” disables all editable fields except Status.
  • Ready to Post - Used when the user is ready to post the transaction. Setting the status to “Ready to Post” disables all editable fields including status.
• Vendor: Select the vendor for the transaction. This list contains all active vendors assigned a “Vendor Type” of Vendor. This field is required.

Note: Due Date and Discount Date calculated from the Payment Terms are displayed in the Properties tab. These properties are only editable after the transaction status is Posted.

Add Line Items

Click New from the grid toolbar to add blank rows for data entry. By default clicking New creates 5 blank rows. Complete the data entry for each line item you wish to add. Each line item must contain both a “Description” and a “Purchase Account” to be saved.

Note: Clicking New from the grid toolbar saves the transaction.

Note: Additional lines can be added by clicking New grid toolbar icon.

Required line item fields

• Description: Enter the description of the line item (e.g. Office Supplies or Rent). This field defaults once the item has been selected. Note: New line items on these transactions, without a Description, will not be saved.
• Extended: This field is read-only and displays the product of the price per UOM and the quantity. 
• Price: The price for the line item. Prices must be greater than 0.
• Purchase Account: The expense account that will be used for the debit side of the journal entry. The lookup contains all the active financial accounts that are marked as “Use in Purchasing”. This field is required and defaults to the Vendors default "Purchase Account" (this can be assigned from the Accounts tab on the Vendor record view) and can be edited while the transaction is 'New'. If the line is distributed to an employee, this field will default to the Employee Accounts Receivable Account and will become disabled. If the line is distributed to a Fisherman, Tender, or Fisherman & Tender, this field will default to the AP Vendor's Settlement Accrual Account and will become disabled.
• Quantity: Enter the amount of the line item. This field defaults to 1 and must be greater than or equal to 0.

Optional line item fields

• Distributed To: If the line item is being distributed, use this lookup to select the project, fisherman, or employee. The lookup contains a list of all active projects, all active vendors with a “Vendor Type” of Fisherman, Tender, or Fisherman/Tender, and all active Employees.
• UOM: This field displays a drop-down menu of all active UOMs to select the unit of measure for the line item. This field defaults from the Purchasing preference "Default Invoice, Credit, & PO UOM", but can be changed to any active UOM in the Units of Measure master file. This field can be edited while the transaction is 'New' and is not required.

Placing Invoices on Hold (Optional)

The properties tab on the record has a field ‘Pmt./Apply Hold’ which allows the user to place invoices on payment hold, preventing it from displaying in the list of transactions when doing a check run or when applying documents. 

To place an invoice on hold, open the invoice transaction, click the properties tab, scroll to the ‘Pmt./Apply Hold’ field and click the dropdown menu and select ‘Yes’.  Click Save from the header toolbar.  Invoices in the status of New, Approved, Ready to Post or Posted can be placed on hold.  The field will be disabled for transactions in the status of Void or Replaced.  Invoices that are part of an open check batch, or that have been fully settled will not be able to be placed on hold.

Invoices may also be placed on hold using the Mass Update tool from the AP Invoice and Invoice Lines List Views and Inquiries as well as the Vendor History Inquiry. 

Assigning Attributes (Optional)

The Attributes tab on the record will include all user-defined Attributes assigned to AP Purchasing - Invoice Transaction.

To setup Attributes for the AP Purchasing - Invoice Transaction, navigate to Company → Attributes → AP Purchasing → Transactions → Invoice. 

Step 2: Finalizing the Transaction in NorthScope

Changes can be made to a transaction until it is finalized. To finalize a transaction, the user will need to change the status to “Ready to Post”.  In some companies, posting is a two-step process where transaction(s) are approved by one person and posted by another.  

Approving the transaction

This step is optional and is used for companies that require a two-step process where the person who approves the transaction cannot be the same person that posts the transaction.

To approve a transaction, open it from the list view, change the status to “Approved”, and click the “Save” icon on the header toolbar. In addition to the validations performed each time the “Save” icon is clicked, there are additional validations that are performed:

• Ensure there is at least one valid line item on the transaction.
• Ensure all of the default GL Accounts can be assigned.
  • The “Accounts Payable” account for the transaction vendor.
  • The ”Settlement Accrual” account for each fisherman and tender with a distribution assigned.
• Ensure the GL Date resides within a valid fiscal period as determined by the host system.
• Ensure Payment Terms have been assigned.
• Ensure the required Attribute values have been entered. 

If any of the GL Accounts cannot be assigned, a message will appear. 

Once the status has been successfully updated to “Approved”, all the editable fields, with the exception of status, will be disabled.

Finalizing the transaction

When the transaction is ready to be finalized, open it and change the status to “Ready to Post” and save the transaction. Setting the transaction to “Ready to Post” does the following:

• Validates the same conditions as the approval status
• Locks down all editable fields, including Status
• Creates an un-posted AP Invoice in the Host System, if the integration is turned on.
• Creates an Arrears Transaction Entry in the Host System (if one or more line items were distributed to an Employee)
• Updates the NorthScope Financial Projects (if one or more line items were distributed to a Project)
• Creates a transaction in the Settlement tables (if one or more line items were distributed to a Fisherman/Tender)

Prior to this, the host system does not know about the transaction.

Step 3: Reviewing the transactions in the host system (optional)

If the integration setup for AP Invoice/Credit Memo is set to Timed/Immediate, every Invoice changed to “Ready to Post” will be created in the host system. The journal entry will appear in the host system's Financial module as a Transaction Entry in the batch titled NS followed by the year, month, and day with the following format: NS: YY_MM_DD. For example, if the Invoice was integrated on July 14, 2015, the Batch ID for the transaction entry would be NS: 15_07_14. Once a transaction has been integrated in the host system it can be reviewed prior to posting. Because posting in the host system makes all the updates to the general ledger, the GL Distributions should be reviewed. This can be done by opening the transaction and clicking the “Distributions” icon in the lower right corner.

Every invoice will contain one or two types of journal entry details.

Reviewing journal details to record the payable to the vendor

Every invoice integrated to the host system will contain the following journal entry:

• One debit line showing the summarized total for each “Purchase Account” identified on the NorthScope transaction. The Distribution Type will be “PURCH”.
• One credit line for the total of the entire invoice. The credit account will be the vendor’s “Accounts Payable” account. The Distribution Type will be “PAY”.

Reviewing journal details to record the accrued liability for line items that were distributed to fishermen or tenders

Every NorthScope credit memo that contained at least one line item distributed to a fisherman, tender or fisherman & tender will make a journal entry to record the accrual with the following distributions: 

• One credit line for the total of the entire credit memo. The credit account will be the vendor’s “Accounts Payable” account. The distribution Type will be “PURCH”.
• One debit line showing the summarized total for each “Purchase Account” identified on the NorthScope transaction, which will default from the distributed to fisherman's or tender's “Settlement Accrual” account or, if missing, defaults from the purchasing preference for “Default Account – Settlement Accrual” account. The distribution Type will be “PAY”. 

Reviewing journal details to record the accrued liability for line items that were distributed to employees

Every NorthScope credit memo that contained at least one line item distributed to an employee will make a journal entry to record the accrual with the following distributions:

• One credit line for the total of the entire credit memo. The credit account will be the vendor’s “Accounts Payable” account. The distribution Type will be “PURCH”.
• One debit line showing the summarized total for each “Purchase Account” identified on the NorthScope transaction, which will default from the distributed to employee's “Accounts Payable” account. The distribution Type will be “PAY”. 

Step 4: Posting in the host system

Once the user is satisfied that all the GL Distributions are correct, the user can post the batch in the host system.

Posting the batch accomplishes the following:

• Posts the transaction within the Purchasing Module of the host system
• Updates the General Ledger of the host system
• Updates the Transaction Status in NorthScope from “Ready to Post” to “Posted”.
• Enables the Due Date and Discount Date fields in the transaction Properties.

Note: Although this step is required, it does not need to be done for each transaction. Posting can be done nightly or as needed.

Step 5: Reviewing in NorthScope

Once Step 4 is complete and the transactions have been posted in the host system, the following events will happen in NorthScope: 

For transactions that did not contain any line items with Distributions and those that contained at least one line item distributed to an employee

The transactions that were posted in the host system will have their status automatically updated from “Ready to Post” to “Posted” and will no longer be visible in the NorthScope Purchasing Transaction List View.

If the Host system integration is not turned on, the transaction status is set to "Posted" when it's saved as "Ready to Post.

For transactions that contained at least one line item distributed to a project

The transactions that were posted in the host system will have their status automatically updated from “Ready to Post” to “Posted” and will no longer be visible in the NorthScope Purchasing Transaction List View.

The “Actual Expense” value of each Project will be updated to include the details from each transaction line item that was distributed to a project, increasing the expense by the distributed amount.

If the Host system integration is not turned on, the transaction status is set to "Posted" when it's saved as "Ready to Post.

For transaction that contained at least one line item distributed to a fisherman or tender

The transactions that were posted will have their status automatically updated from “Ready to Post” to “Posted” and will no longer be visible in the NorthScope Purchasing Transaction List View.

Settlement Transactions will be added for each fisherman and tender that was distributed to, charging the fisherman and/or tender the distributed amount.

If the Host system integration is not turned on, the transaction status is set to "Posted" when it's saved as "Ready to Post.