Setting up invoices with reference to a PO lets you compare your received invoices with the applicable PO and transfer information from the PO to the line items. Below you can see a summary of the basic functions that d.velop smart invoice provides for invoices with a PO reference.

Useful information to know: general information and calculations  

A PO consists of header and line item data. The PO number and information about suppliers, which you can find in the header data, are important pieces of information for processing invoices with PO references. The line items from the PO are also essential, because they list what was ordered.

Linking the PO line item and invoice line item 

Each line has a PO number and a PO line item. Each invoice line item in d.velop smart invoice can be assigned to exactly one PO line item. For this purpose, each invoice line item has the fields Order no. and Order line item.

Useful information to know about the unit price, quantity, unit and price unit 

Invoice line items contain fields such as Item no., Unit price, Amount and Unit, for example. These fields can be used independently of POs, but primarily appear in lines with a PO reference.

In the simplest scenario, the Unit price and Amount fields determine the net price of the line with the PO reference through the following equation:

Unit price x quantity = net amount

The Unit field is also usually available for Amount. Common units include pieces, kilograms or meters, for instance. The unit in d.velop smart invoice is generally purely an information field that is not initially of relevance.

The behavior is different if the Unit of price (price unit) field is taken into account. A price unit is used whenever the unit price is specified for a unit of measure that differs from that of the amount. This is the case, for example, if the unit price in the PO and on the invoice is specified in “packaging per 100 pieces” but the amount is specified in individual pieces, because the item is to be managed in individual pieces in the warehouse stock in the ERP system. To calculate the net price, the unit price must first be divided by the price unit before it is multiplied by the amount:

Unit price / price unit x quantity = net amount

Based on the example above, the price unit “100” would return the correct results, because the unit price is specified in 100 pieces but the amount is specified in individual pieces. The division calculates the unit price per piece.

PO master data from the ERP system 

To work with POs in d.velop smart invoice, you require PO data. This generally comes from the existing active POs from the ERP system. This master data is provided through an integrating application. This often means that the data is regularly transferred to a bucket.

The master data contains the PO and the PO lines. A PO comprises information such as the PO number, a description and an (optional) status. A PO line contains information such as the item number, amount, unit price, price unit, tax code, cost center, and so on.

To work with POs, you must transfer these POs to the document from the master data. There are several ways to do so:

Retrieving PO lines 

You can manually transfer the PO lines from the PO master. You can use the Fetch order data function to do so. You can use these functions to search through the PO master for POs for the selected companies and vendors. For each PO, you can display the available PO lines and choose which lines you want to transfer to the invoice. The amount ordered, delivered and calculated with each PO line item is also displayed.

Capturing PO lines with d.velop document reader 

If you are using d.velop smart invoice in the cloud, d.velop document reader automatically detects line items on the invoice that are linked to POs. These line items are automatically transferred from the PO and provided with the values for prices and amounts that are found on the invoice.

Importing PO numbers 

When you import a document to start a workflow, you can transfer a list of PO numbers. To do so, the relevant multi-value property must be assigned in d.velop documents. d.velop smart invoice determines the PO line items for which there is a remaining billable amount. This means that the PO master data has a delivered amount that is greater than the amount that was already processed by d.velop smart invoice. Please note that the values from the PO are transferred to the invoice in this scenario. No values for unit prices and amounts are read from the document.

Importing line items and POs 

In addition to the option of importing a list of PO numbers, you can specify the line items to be created through a document property and establish the relationship to a PO line item. In this case, the data that is not transferred from the invoice line item is enriched with the PO master data. As a result, you can connect the results from an external document capture system (the amount and unit price, for example) to the PO functions in d.velop smart invoice.