Invoices / Receipt Goods

Back Office > Suppliers > Invoices/Receipt Goods

Description

This menu item is used to record the receiving of Goods/Products by either manually entering Invoices or importing electronic Invoices. A Supplier and Location must be selected before any Supplier Invoice items can be recorded. The Invoice number entered, is generally the delivery docket number or credit not number provided by the Supplier. It must be unique and cannot be changed once the Invoice is saved as complete.

Invoices/Receipt Goods

This screen is accessed from here.

Header

Supplier - Select to open the Search Supplier screen and select the Supplier the Invoice is from.
Location - Select to open the Search Location screen and select the Location where the Invoiced Products are going to be received.
Set Label Qty - Select to add the quantity of Products received to the Product's label count for that Location. It is designed for a retail environments that do NOT make use of Barcoded Products, and therefore would require the printing of Product labels for each individual Product received. For further information re printing Product labels click here.
Invoice Date - Select from the drop down calendar the Invoice date r the date the goods were received. Defaults to Today's date.
Purchase Order # - Enter a Purchase Order Number. This must be a number.
Type - Select from the drop down list one of the following options:

Invoice
Credit Note

Invoice # - Enter the Invoice number.
Default Costing Method - Select from drop down list the default Costing Method to be applied to all Invoice Items:

New Cost
Average Cost
Old Cost
Average (SOH Only)

Note : If the drop down list is disabled, then the Supplier Costing Method has been set at the Location Groups (Venues) level. For further information re the Costing Method click here.

Grid

Supplier Code - Displays the Supplier's Order Code of the Product.
Description - Displays the Product Description.
Size - Displays the Size of the Product Size.
Cases - Enter the number of Cases invoiced/received.
Units - Enter the number of Units invoiced/received.
Tax % - Displays/Enter the Purchase tax rate. If a Tax rate is entered that is different to the Product Supplier's existing Purchase tax rate a confirmation prompt (similar to the one below) will prompt the user for confirmation to proceed to change to the new tax rate entered:

Ex Tax - Displays the total for this Invoice line excluding Tax.
Inc Tax - Displays the total for this Invoice line including Tax.
Costing - Displays the costing method used for this Invoice line. Select from the drop down list to change. For further information re the Costing Method click here. Note : If the drop down list is disabled, then the Supplier Costing Method has been set at the Location Groups (Venues) level.
Bonus - Select to indicate Product quantity invoiced/received is Bonus Stock.
Money Only - Select to ensure that Invoice Item is to be considered as a Money Only entry. This will ensure that when the Invoice/Credit Note is completed, the Cost of the Item will be decremented/incremented using the dollar amount entered, without the SOH levels being affected. Note : This option is only available when the Average Cost or Average (SOH Only) Costing Method is selected.
Item Cost - Displays/Enter the cost of this item.
Current - Displays the current Cost price of the Product. The cost displayed as the current Cost of a Product is determined in the following order:

First use the Cost price retrieved from the most current Contract Pricing. If none available then:
Use the Contract Unit Price. If none available then:
Use the Last Unit Cost. If none available then:
Use the Product's Cost price specific to the Location the Supplier Purchase Order and/or Invoice is being raised in.

Case Qty - Displays/Enter the current Product Case quantity.
Total Qty - Displays the total Product quantity invoiced/received.

Grid Footer

Add Row - Select to add a row to the grid. Note : If the following prompt is displayed, then this will indicate that the Prompt for Supplier Invoice total first option has been selected in the Global Preference. This means an Invoice/Credit Total must be entered before any items can be added to the grid.

Delete Row - Select to delete the selected row from the grid.
Reset Sort Order - Select o ensure the rows in the grid are reset to the original order they were added.
Legend - Depicts the reasons why some rows in the grid are either displayed in Red or Green.
Subtotal - Displays the Subtotal of all Items in the Invoice.
Tax - Displays the total Tax of all Items in the Invoice.
Total - Displays the Total including Tax of all Items in the Invoice.

Invoice Footer

Freight

Freight/Misc. Charges - Enter any Freight/Miscellaneous charges that may be payable with the Supplier Invoice. These charges can be kept separate from your Product costs or they can be averaged out over all of the line items in the Supplier Invoice only when the invoice is saved. It is possible to average out these charges across all items in the Invoice using Cost Averaging. Note : The freight/misc. charges should be entered including tax if they are subject to tax.
Inc Tax - Select to indicate the Freight/Charge amount entered above is including tax.
Tax Value - Displays the calculated tax. Tax on purchased goods are set here.
As 'On Cost' Only - Freight on the full Order, not on individual items.
Cost Averaging - Select from the drop down list one of the following options :

Click here for an example to a Cost Averaging calculation.

Warehouse Stock Only - Select to ensure the Invoice will not be able to be retrieved in Basic Invoicing.

Surcharge(+)/Discount(-) (Exc) - Select from the drop down list one of the following averaging options:

No Averaging - Select to ensure the Surcharge/Discount entered is applied to the Invoice.
Average per Item Qty - Select to ensure the Surcharge/Discount entered will be averaged, based on the Items' Qty, across each of the Invoice Items.
Average per Item Price - Select to ensure the Surcharge/Discount entered will be averaged, based on the Items' Price, across each of the Invoice Items.
and the averaging option required and enter the Surcharge/Discount amount to be applied to all items in the invoice.

Note : These amounts must be entered exclusive of Tax.

Rounding/Misc Charge (Exc) - Displays/Enter any rounding or other miscellaneous charges that may be applicable and must also be entered exclusive of any Tax.
INVOICE/CREDIT NOTE TOTAL - Displays/Enter the total value of the Invoice/Credit Note.

Add Row - Select to add a row to the grid. Note : If the following prompt is displayed, then this will indicate that the Prompt for Supplier Invoice total first option has been selected in the Global Preference. This means an Invoice/Credit Total must be entered before any items can be added to the grid.

Delete Row - Select to delete the selected row from the grid.
Reset Sort Order - Select o ensure the rows in the grid are reset to the original order they were added.
Legend - Depicts the reasons why some rows in the grid are either displayed in Red or Green.
Subtotal - Displays the Subtotal of all Items in the Invoice.
Tax - Displays the total Tax of all Items in the Invoice.
Total - Displays the Total including Tax of all Items in the Invoice.

Footer

New - Select to add an Invoice.
Retrieve - Select from the drop down list one of the following options:

Submitted Purchase Order - Select to open the Search Purchase Orders screen to select submitted Purchase Orders previously created.
Purchase Order Back Orders - Select to open the Search Purchase Orders screen to select existing purchase orders for which the quantity delivered is less than quantity ordered. For example: 4 kegs of XXXX were ordered but only 3 were delivered. However, the following week the last keg was delivered. By retrieving the Back order of 1 the invoice can be posted.
Locked Invoice - Select to search Locked Invoices, and select one.
Pending Invoice - Select to open the Search Supplier Transactions screen and select previously saved Invoices as pending. In addition to this it is also the option used when retrieving Supplier Invoices that have been imported using the Invoice Import feature.
Delivery Docket - Select to open the Search Delivery Dockets screen to select a Delivery Docket.
Reverse Completed Invoice - Select to search Supplier Completed Invoices, to select one and reverse it creating a new Invoice/Credit Note.
Copy Completed Invoice - Select to open a search screen to select from a list of completed Supplier Invoices, a completed invoice and copy it to create a new invoice.
From PDE Orders Screen - Select to retrieve a PDE Order.

Note : Multiple Purchase Orders from the same Supplier & Location combination, can be retrieved and added to a single Invoice.

Save - Select from the drop down list one of the following options:

Save as Pending and Print - Select to print the Invoice and save it as pending.
Save as Pending - Select to save as pending.
Save as Complete - Select to save the Invoice as complete. This implies it can NOT be changed. Please be sure that all of information entered into the Supplier Invoice is correct before saving it as complete. This will increment stock levels for the Products listed in the Invoice at the selected Location. Note : Access to Completing Invoices can now be restricted. For more information ...
Save as Complete and Print - Select to print the Invoice and save it as complete. This implies it can NOT be changed. Please be sure that all of information entered into the Supplier Invoice is correct before saving it as complete. This will increment stock levels for the Products listed in the Invoice at the selected Location. Note : Access to Completing Invoices can now be restricted. For more information ...

Note : The following prompt will be displayed if the Prompt For Supplier Invoice Date Last option is selected in Global Preferences:

Preview - Select to preview a the selected invoice.
Reset - Select to clear the screen and delete the currently displayed Invoice. Note : If a Pending Invoice is reset, then the status of the associated Purchase Order will be reset to Submitted.
Unlock - Select to open the Search Supplier Transactions screen to view a list of Locked Invoices, that may need to be Unlocked. Note : An Invoice may end up being locked, as a result of the Back Office application closing while and an Invoice was open and being worked on at the time. Also, this button will only be visible if the Clerk/Staff Member currently logged in, is in a Security Group that has this feature selected.
Contract Pricing - Select to open the Contract Pricing screen, to review contractual pricing arrangements for the selected Product.
Close - Select to exit.

Costing Methods

There are a number of costing methods that can be used when posting Supplier Invoices and updating Location costs. Please note that Product costs written to the Location cost in SwiftPOS Back Office are exclusive of Tax and selling prices should always be inclusive of Tax. It is also important to remember that Reciped Items will have their costs updated appropriately once their associated Purchased Item costs have been posted from the Supplier Invoice. When a cost is updated, SwiftPOS checks to see if there are any Items Reciped to the Purchased Item and then triggers an update to change the cost of Reciped Item Products based on the recipe quantity that has been setup in SwiftPOS.

New cost - The new cost method simply uses the new cost as shown in the Supplier Invoice, and overwrites the cost of each Product in the specified Location when the Supplier Invoice is committed.
Average Cost** - The average cost method uses a formulae (see below) to calculate the new cost.
Old Cost - The old cost method simply keeps the current cost and discards the new cost, no matter how much it has changed.
Average (SOH Only) - This method is similar to the Average Cost method, with the exception that Products with a negative SOH are treated as Zero. The SOH value used is the total of all SOH values across all Locations for a particular Product. In the Average Cost method a negative SOH value is converted (Absolute (ABS function)) to a positive value and used in the calculation of the Cost. Where as with the Average (SOH Only) calculation, it is treated as a zero value instead.

Costing Method Examples	Bonus Stock*	Current			Invoiced			New
Costing Method Examples	Bonus Stock*	SOH	Cost Price	Value	Qty	Price	Value	SOH	Cost Price	Value
New Cost		5	$100.00	$500.00	2	$110.00	$220.00	7	$110.00	$770.00
		0	$100.00	$0.00	2	$110.00	$220.00	2	$110.00	$220.00
		-5	$100.00	-$500.00	2	$110.00	$220.00	-3	$110.00	-$330.00
		5	$100.00	$500.00	2	$0.00	$0.00	7	$0.00	$0.00
		0	$100.00	$0.00	2	$0.00	$0.00	2	$0.00	$0.00
		-5	$100.00	-$500.00	2	$0.00	$0.00	-3	$0.00	$0.00
	Y	5	$100.00	$500.00	2	$0.00	$0.00	7	$100.00	$700.00
	Y	0	$100.00	$0.00	2	$0.00	$0.00	2	$100.00	$200.00
	Y	-5	$100.00	-$500.00	2	$0.00	$0.00	-3	$100.00	-$300.00
Average Cost**		5	$100.00	$500.00	2	$110.00	$220.00	7	$102.86	$720.00
		0	$100.00	$0.00	2	$110.00	$220.00	2	$110.00	$220.00
		-5	$100.00	-$500.00	2	$110.00	$220.00	-3	$110.00	-$330.00
		5	$100.00	$500.00	2	$0.00	$0.00	7	$71.43	$500.00
		0	$100.00	$0.00	2	$0.00	$0.00	2	$0.00	$0.00
		-5	$100.00	-$500.00	2	$0.00	$0.00	-3	$0.00	$0.00
	Y	5	$100.00	$500.00	2	$0.00	$0.00	7	$100.00	$700.00
	Y	0	$100.00	$0.00	2	$0.00	$0.00	2	$100.00	$200.00
	Y	-5	$100.00	-$500.00	2	$0.00	$0.00	-3	$100.00	-$300.00
Old Cost		5	$100.00	$500.00	2	$110.00	$220.00	7	$100.00	$700.00
		0	$100.00	$0.00	2	$110.00	$220.00	2	$100.00	$200.00
		-5	$100.00	-$500.00	2	$110.00	$220.00	-3	$100.00	-$300.00
		5	$100.00	$500.00	2	$0.00	$0.00	7	$100.00	$700.00
		0	$100.00	$0.00	2	$0.00	$0.00	2	$100.00	$200.00
		-5	$100.00	-$500.00	2	$0.00	$0.00	-3	$100.00	-$300.00
	Y	5	$100.00	$500.00	2	$0.00	$0.00	7	$100.00	$700.00
	Y	0	$100.00	$0.00	2	$0.00	$0.00	2	$100.00	$200.00
	Y	-5	$100.00	-$500.00	2	$0.00	$0.00	-3	$100.00	-$300.00

* Bonus Stock - When selected the Item's Total Qty is posted to update the SOH, but the Item's Cost Price remains unchanged. In general, most sites do not wish to have Bonus Stock effect their Product Costs. By selecting the Bonus Stock checkbox, this can be avoided. Note : It is advised that the invoice is always checked (re the Bonus Stock checkbox) before it is posted (completed). Only electronic Metcash / ALM Invoices have the ability to automatically flag Invoice Items as Bonus Stock.

** Average Cost - This method uses a formulae to calculate the new cost as follows: (Current Cost x Stock on Hand) + (New Cost x Quantity Ordered) / (Stock on Hand + Quantity Ordered)

What happens when there is a negative SOH value

The Cost Price is calculated based on New Cost method above. The absolute value of the SOH is used when calculating the Cost Price.

SOH is -10 @ $10 each. Value $100 (taking the absolute value)

Receive 20 @ $15 each. Value $300

Average costing is $400 / 30 which is $13.33 each.

The reasoning for this is that you may have transferred the stock to another Location or you must of actually had the stock to sell it in the first place and that you are late in posting your Supplier Invoices.

Assuming the stock was on hand (to sell it in the first place) then the result would have been the same anyway.

Example of Cost Averaging Calculation

A	Sum of Stock on Hand	414
B	Current Cost Recorded	$ 2.50
C	Posting Qty	24
D	Invoice Item Cost	$ 2.50
E	Freight Component	$ 1.64
F	Discount Dispersal Method	1
G	Total Invoice Item Cost Ex.	$ 60.00
H	Total Good Received	$ 60.00
I	Discount Value	-$ 5.00

(ABS(A * B) + (C * D + E) + IF(F = 1, G / IF(H * I = 0, 1, H * I), 0)) / IF(ABS(A) + C) = 0, 1, ABS(A) + C)

	Result:	$ 2.50

Understanding Different Costing Methods

First-in / First-out

Under the FIFO method, the earliest goods purchased are the first ones removed from the stock account. This results in the remaining items in stock being accounted for at the most recently incurred costs, so that the stock asset recorded on the balance sheet contains costs quite close to the most recent costs that could be obtained in the marketplace. Conversely, this method also results in older historical costs being matched against current revenues and recorded in the cost of goods sold; this means that the gross margin does not necessarily reflect a proper matching of revenues and costs. For example, in an inflationary environment, current-cost revenue dollars will be matched against older and lower-cost stock items, which yields the highest possible gross margin.

The FIFO method is allowed under both Generally Accepted Accounting Principles and International Financial Reporting Standards.

Weighted Average

The weighted average method is used to assign the average cost to a Product. Weighted average costing is commonly used in situations where:|

Stock items are so intermingled that it is impossible to assign a specific cost to an individual unit. This occurs where there is multi-level Product recipes that effect Location specific stock.
When you are purchasing in single units and selling in Cartons and 6 packs, it is difficult to accurately attribute costs. The same issue occurs with kegs where multiple bars are drawing stock from a different Location.
Stock items are so commoditised (i.e., identical to each other) that there is no way to assign a cost to an individual unit.
Supplier invoices or stock transfers between Locations are not posted prior to the Products being sold.

When using the weighted average method, divide the cost of goods available for sale by the number of units available for sale, which yields the weighted-average cost per unit. In this calculation, the cost of goods available for sale is the sum of beginning stock and net purchases. You then use this weighted-average figure to assign a cost to both ending stock and the cost of goods sold.

The net result of using weighted average costing is that the recorded amount of SOH represents a value somewhere between the oldest and newest units purchased into stock. Similarly, the cost of goods sold will reflect a cost somewhere between that of the oldest and newest units that were sold during the period.
|

The weighted average method is allowed under both generally accepted accounting principles and international financial reporting standards.

How to get the theoretical costs and actual costs at the end of a Trading Period

All sales reports are based on a theoretical cost using the cost that was set against that Product at the time it was sold. To get you actual costs, you need to run the Period End Reports.

Invoicing Non-Ordered Items That Need To Be Returned

When entering Invoices into the SwiftPOS Back Office, to record the receipt of Goods, it is sometimes possible that amongst the Goods received there are items that were not ordered and have to be returned. The Invoices/Receipt Goods screen now assists this process by enabling the entry of a Product Description (using a String PLU) to record the Non-Ordered items without having to create a Product for every Non-Ordered item. To make use of this functionality, follow the steps below as a guide:

Create the String PLU Product.

Using the Product Records, create a String PLU Product, which can then be used to facilitate the entering of the Product Description of Non-Ordered items. An example of this can be seen below:

In the Invoices/Receipt Goods screen enter the items on the invoice as per normal. Including the Non-Ordered items.

When the Supplier Code of the Non-Ordered item is entered and it is NOT recognised as an existing Supplier Code within SwiftPOS, the Supplier Code Not Found prompt will be displayed.
Select YES. The Add Supplier Code prompt will be displayed

Enter the Product code of the String PLU Product (created in step 1 above) or select the button on the right of the Product Code field to open the Search Products screen to search for it.
Select OK.
In the Invoice/Receipt Goods screen change the Description of the String PLU Product to the description of the Non-Ordered Invoiced item and complete entry of the remaining Cases, Units, etc.
Complete the Invoice.

Now that the invoice has been completed, it is possible to run a report to list the Non-Ordered items to be returned, and then to use to create a Credit Note.

In Reports > Suppliers - Select the Inventory Postings (SUP021) report:

Select the Period/Date Range, Supplier and enter the String PLU Product (created in step 1 above) in the Product From and To filter.
Run the report.

Using the Inventory Postings report, create the Credit Note to record the return of the Products were not been ordered. Note : The Product Descriptions, qtys and values (listed in the report above) for the items returned will have to be re-entered when creating the Credit Note. The String PLU Product's (created in step 1 above) description will initially be displayed when the Supplier Code is entered.
Run the Inventory Postings to now include the Credit Note.

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