Vendor shipments are normally invoiced when the vendor notifies you that they have shipped the items to your customer. The Vendor may notify you by phone, mail, or email, or they may forward EDI information (which can be automatically loaded into the system). Once the determination is made that the vendor has delivered the items, the customer sales order is completed or invoiced from the PO Management program using the Invoice Vendor Shipment Option.
The Purchase Order Management “Invoice Vendor Ship” option allows you to create the invoice for the customer from the vendor purchase order that was placed for the customer order. The option also closes out the appropriate PO lines, and it records a liability to the vendor for the item delivered by the vendor to your customer.
Once you select the appropriate purchase order in the PO Management program and select the Invoice Vendor Ship option, the system actiivates The Prepare to Invoice Vendor Shipment program, which displays the line item detail for the selected PO. The Prepare to Invoice Vendor Ship program is used to identify the items and quantities that were actually shipped by the vendor, and enter any required serial number information for the invoice.
Once the shipment information has been entered or verified, and the Invoice Vendor Shipment Button is pressed, the system loads the information for the shipment into the Order Invoicing program.
The Order Invoicing program allows you to specify the shipping charge and cost (if any) to be used for the invoice, and it allows you to record the shipment tracking information for the invoice. The system will not automatically manifest a vendor shipment invoice as the items are delivered by the vendor).
The Order Invoicing program also allows you to view and edit the comment and images information that is associated with the order and invoice being processed.
Once you have edited or verified the information in the Order Invoicing program, you may save the new invoice by pressing the Invoice Button.
As the vendor ship invoice is saved, the inventory on-hand quantity for the vendor ship items is not adjusted, as the goods are not being shipped or received. The total reserved, reserved, and allocated quantities for the item are not adjusted downward, as they were not incremented when the order was entered.
Vendor ship invoicing does update the appropriate inventory sales statistics so that you can determine the number of units that were sold from stock and the number of units delivered directly by the vendor.
The Vendor Ship Invoicing process creates records in the Inventory Activity file. These VS type Inventory Transactions record the simulataneous “receipt and sale” of the item to the customer and they record the liability to the vendor for the goods provided to your customer by your vendor. The VS Inventory Activity records store the quantity shipped by the vendor in a reference quantity field, and the item cost for each item in the cost field. The Inventory Activity records are posted to Inventory and to Inventory Liability. The inventory posting increases inventory in the GL – this offsets the decrease to inventory that is booked when the customer invoice is posted, and the posting to Inventory Liability records the liability to the vendor for the cost of the items.