We’re in an odd situation where our division is the only part of our parent company that uses Epicor (we’re they only div that does manufacturing).
As far as the GL goes, we let E10 do it’s thing. We run various reports that export (and format) GL info ARInvoices, AP Invoices, Sales, COGS, etc… These are then uploaded to the parent company’s system.
We don’t do payables in E10. That is done by the parent company’s system.
We do enter AP Invoices in E10, and then export them for uploading into the parent company’s system. Our Payables GL account just grows and grows.
My question is, what would be affected by discontinuing the AP Invoice entry?
Currently, a PO receipt (for PUR-STK)
Debits “Inventory”
Credits “AP Clearing”.
When the Invoice is entered
DB to “AP Clearing”
CR to “Payables”
Anything else happening behind the scenes, where if we stopped AP Invoice entry, we’d do anything more than just leaving the costs in the “AP Clearing”?
Only major thing I can think of is how do you know if a PO hasn’t been invoiced? We check the Received Not Invoiced report monthly to make sure things don’t get lost. For example, if an AP clerk missed an emailed invoice, or if someone ended up paying a PO with a credit card, that report is our chance to clean things up.
If you’re not doing anything bank related in the system, then probably not a big deal to stop entering AP. Otherwise, I think you’d need full AP functionality to reconcile cash properly.
After thinking about it some more, I’ve found a few other things that aren’t show stoppers, but would be annoying enough that handling them would wipe out any time saved by not doing AP Invoice entry.
Primarily, that during Invoice entry is when you’ll see variances between the cost on the PO, and the cost on the Invoice. And we have a hard stop if they don’t match.
Same here. I always wonder why variances pop up so much, because we ask purchasing agent to confirm pricing. But things happen! Sometimes the vendor messes up too, and you want to catch their mistakes
there is one thing which you might miss on costing. Here is a scenario: PO entered for 1 pcs x 10 USD, receipt done for 1 pcs x 10 USD but the actual invoice is 1 pcs x 12 USD.
The difference 12 USD (invoice) - 10 USD (receipt) creating and ADJ-PUR transaction in the moment when the invoice is posted and, based on setup, could update material costs or job costs. Not entering the AP invoices will make you miss that scenario. That means the average cost might be different than what was supposed to be (smaller) and the job costs undervalued. Of course it an be the other way around as well (if purchase price from invoice is smaller than on PO).
BUT - if users do their work properly all the time the PO price = AP invoice price and you will not get into this situation.
