Procountor software contains all the tools needed for the processing and payment of purchase invoices. This page briefly explains the procedures for entering, approval and payment functions related to purchase invoices.
Features of purchase invoice processing and accounts payable
- purchase invoice processing, verification, approval and accounting
- receipt of purchase invoices as electronic invoices
- purchase order processing, sending and accounting
- scanning purchase invoices and barcode reading using Docusend software
- purchase invoice scanning service in co-operation with Xerox Oy and Itella
- adding a scanned image to the invoice
- maintenance of the supplier and product register
- graphic reports on suppliers and purchased products
- list of open purchase invoices
- payment of purchase invoices as domestic and foreign payments
- automatic update of purchase ledger from bank statements
Entering purchase invoices
Receiving electronic invoices
The most efficient way to enter purchase invoices in Procountor is to receive them as e-invoices. An e-invoice is an electronic invoice, from which information can be directly imported to the accounting software without any manual work in the entry. This improves operational efficiency and reduces errors in accounting entries.
Procountor has direct send and receipt connections for electronic invoices. You only need to give your electronic invoice address to the invoice sender. Then, the e-invoices start to arrive automatically at your Procountor environment with the status Received, ready for you to verify, approve and pay electronically. The accounting entries of the invoices will also be generated automatically on the basis of accounting defaults.
Read more about electronic invoices and their introduction.
Scanning service for purchase invoices
If an invoice sender is not yet able to send e-invoices, but you want to process those purchase invoices electronically, you can use the Xerox purchase invoice scanning service or the OpusCapita purchase invoice scanning service. The purchase invoices will be addressed to a separate PO box in the scanning service that transfers them to your Procountor environment. From there you go on processing them as per normal in fully electronic format.
Both purchase invoices received as e-invoices and those received through the scanning service arrive at Procountor with the status Received. You can search them easily using the Search purchase invoices function, for example.
Entering purchase invoices manually
A purchase invoice can also be entered manually in Procountor, either using a supplier found in the supplier register or directly using an empty invoice template. With the purchase invoice Attachments button you can add files (for example a scanned image of the invoice). You can enter the purchase invoice either in the main menu option Purchases > New purchase invoice or in the supplier register by clicking the Create invoice for partner button. You can also create a new purchase invoice by searching an existing invoice and using the invoice copying function.
Invoice rows of electronic purchase invoices
In the invoice row processing of electronic invoices, all the invoice rows in the invoice data are read and the information is compared to the total sum of the invoice. If the information matches, the purchase invoice can be read into the program by rows; if there are differences in the information, i.e., all invoice rows are not identified, the invoice is processed as follows:
ProCountor automatically makes a row on the invoice where any difference between the invoice rows and the total sum is visible. This row information should always be verified in connection with the verification of the invoice and corrected, as necessary.
- The difference between the invoice rows and the invoice total sum is saved on the Sum to be verified row. The Sum to be verified row must always be processed, and the user must, as necessary, edit the invoice row so that the data is entered correctly on the receipt with regard to VAT and the sum
- On the Sum to be verified row it is possible to enter a product in the product register with the product code procountor_sum_difference, by means of which the default posting may be channeled to “the dump account”, which is always verified separately when the period is closed
- The rounding difference row is created when the difference is small. The rounding difference has a product code procountor_rounding_difference, on the basis of which it is possible to enter a product in the product register and channel the sum to a specific accounting account.
- If the invoice data does not contain invoice rows, an Invoicing according to the attachment row is made up, which must be verified and processed.
Verification and approval of purchase invoices
Verification and approval
Before you pay, you have to check the received purchase invoices. For this, ProCountor has verification and approval functions for received purchase invoices. Verification means that you check the contents of the purchase invoice against e.g. the order confirmation, and approval means that the invoice is OK to pay. After approval, the invoice also becomes a business transaction from the accounting point of view.
If the invoice has to be edited or invalidated after approval, the invoice may be returned to the status Unfinished. This succeeds on the Invoice view by clicking Edit > Change state to unfinished, or on the Verification view by clicking Exception > Unfinished.
Using of approval circulation
If several persons in the company are involved in the verification and/or approval of purchase invoices, it is advisable to use the purchase invoice approval circulation. Then it is possible to define designated verifiers and approvers to invoices and they can receive email notifications of invoices waiting for verification when needed.
Accounts payable and payments
Search open purchase invoices
Open purchase invoices include verified or approved purchase invoices that have not yet been paid. You can search for them directly through the main menu function Search for open purchase or through the Receipt search Search open invoices function.
Search for purchases and payment
ProCountor contains bank connections that can be used when paying purchase invoices from the company’s bank accounts defined in Procountor. You can search for purchase invoices waiting for payment directly through the main menu function Search invoices to pay or through the Receipt search Search invoices to pay function.
You can go to the Payment view through the Receipt search or from the purchase invoice information using the Payment button. If you want to pay several invoices at the same time, you can use the Payment of multiple invoices function. Approved invoices do not proceed automatically to payment, but you always have to pay them as a separate step.
Automatic receipt of bank statements
Bank statements are automatically received from the bank accounts that are connected to Procountor. Withdrawals are posted to paid purchase invoices by matching reference numbers, and paid invoices are removed from the list of open invoices.
Processing of purchase invoices and payment reminders
If an original purchase invoice has been received and afterwards a payment reminder. The latest payment reminder is left as an open purchase invoice and the original invoice is entered with the status Marked paid; the payment date is the same day as the accounting date of the payment reminder.
For example, when the original purchase invoice is €100, and a payment reminder of €105 has arrived at it, of which €5 is interest expenses. The posting of the purchase invoice and the payment reminder invoice is changed as follows:
- The accounting date of the original invoice is September 1, 2015, and the posting for the invoice is: Debet 8450 Other administrative expenses/Credit 2880 Payment transaction account: 100,-
- The 1st payment reminder October 1, 2015 is posted Debet 2880/Credit 2880: 100,- and Debet Interest expenses account/Credit 2880: 5,-
- The original invoice is entered with the status Marked paid on October 1, 2015, in which case the Payment transaction account 2880 does not show a difference and the latest payment reminder is an open purchase invoice.