Set up Compliance Tracking for Non PO/SL Invoices
Setup options to consider in AP before tracking vendor compliance on non-purchase order and non-subcontract related invoices.
- Check Vendor Compliance on Trans Entry, Warn Only – This check box should be selected if you are tracking vendor compliance when posting non-PO and SL invoices. If you enter an invoice for which the vendor is out-of-compliance, a warning is displayed, but the entry will be allowed. If you leave this check box cleared, invoices are not checked for vendor compliance.
- Don't Add Vendor to Paym't Batch if out of Compliance – This check box should be selected if you do not want non-PO or SL transactions initialized to a payment batch when the vendor is out of compliance. If you leave this check box cleared, out-of-compliance invoices can be initialized into payment batches
- In the HQ Compliance Codes form:
- Use this Code to Verify Compliance – Select this check box for every compliance code that you want verified when checking compliance. If not selected, compliance is not checked for that code.
- Use this Code for 'All Invoice' Compliance – Select this check box if you want the compliance code to check compliance on all invoices, regardless of whether it is PO or SL related. If not selected, the code is only used when checking purchase order or subcontract compliance.
During invoice entry
Typically, when you add a compliance code for a vendor (in the AP Vendor Compliance form), the system checks for purchase orders and subcontracts assigned to the vendor. If purchase orders and/or subcontracts exist for the vendor, the AP Update PO/SL Compliance window displays, allowing you to update the codes to all purchase orders and/or subcontracts for that vendor. However, if you add/delete a compliance code flagged for 'all invoice' compliance, this window does not display, regardless of whether there are existing purchase orders and/or subcontracts for the vendor.
Once you have implemented this feature, each time you enter a non-PO/SL transaction (in AP Transaction Entry, AP Unapproved Invoice Entry, AP Payment Posting, or MS Haul Payment Worksheet) that is not in compliance, you will receive a warning message; however, the entry will be allowed.
Payment initialization excludes 'out of compliance' vendors for non-PO/SL invoices, if you have set the flag in the AP Company Parameters form accordingly. However, checks for PO/SL compliance override vendor compliance checking. In other words, if a transaction passes the 'all invoice' check, but its PO or SL lines are not in compliance, the transaction will not be added to the payment batch. Likewise, if an 'all invoice' check shows 'out of compliance', but the PO/SL lines are in compliance, transactions will be added to the batch.