Entering A Bill Against Short Shipment

Overview

This document will cover where you have been short shipped by your vendor on a line item(s). For instance, you order 18 of a single part and when you receive the material, the vendor's packing slip indicates they shipped you all 18 items even though there are only 10 in the box. The Receiving department receives 10. And an additional receiver is now created for the 8. Now, your AP department then receives an invoice from the vendor for all 18.

You can handle this scenario in two ways.

1. Create a Missing Items Adjustments Debit Memo where you bill for only the items received and create a Missing Items Adjustments Debit Memo and notify the Vendor to send the missing items and the Vendor must bill you for the secondary shipment or cancel that Receiver.

Or

2. Create a Bill with No Receivers (new in Version 10) expecting the items to be received from the Vendor and to actually show 2 bill entries for the 1 AP Invoice from your vendor, and 1 check payment before and after receiving the secondary shipment, but then reflecting the actual receipt of the items when they are received.

In the screenshot below we can see that the buyer purchased 18 but the warehouse only received and put away 10 of these items. Thus creating another receiver for the 8 not received.

After the items are received, AP gets an invoice from the vendor billing you for all items. When the person that handles AP goes to enter a bill against the PO in Accounting Manager > Accounts Payable > Enter bills > From PO > Search PO/Release, Savance Enterprise will only populate a bill that is worth the value of the items that have been received against that PO to date. This is demonstrated below.

You can see that the balance due is only for items received even though the invoice is going to be for the full amount.

Create a Missing Items Adjustments Debit Memo

In this scenario, you can add Missing Items Adjustments on this same screen in order to increase the amount of the bill you are going to create to match the amount in the invoice. You also have the option to Create a Debit Memo automatically for the difference by checking the “Create debit memo” box next to the Missing Items Adjustments box (Be sure to choose the proper expense account to associate this transaction to).

Then click ‘Create Bill’ in the bottom right-hand corner of the screen.

At this point, Savance Enterprise will create a bill for the full invoiced amount and will automatically create a credit against the debit memo you created by checking the “Create debit memo” box.

This credit will be auto-applied to the bill for this invoice. You can still apply more credits if you’d like for this bill by clicking the ‘…’ button next to credits.

At this point, if you are satisfied with the bill you can proceed by clicking pay bills in the bottom right-hand corner or follow the link to the bill in order to edit further. Next, it will be up to the Purchasing to see if the Vendor is going to ship the difference, if not the PO will need to be adjusted with the amount that was short-shipped. And then AP will expect from the vendor another bill for the remaining parts, or when received, using the same Bill Reference Number, Enter the Bill in SE.

Ledger transactions look like this:

And the Check will be for only the Amount of items received and Remittance Advice will look like this.

Create Bill with No Receiver

You can use Create Bill with No Receivers when being billed for full quantity but have been short shipped.

And are expecting the parts and need to pay the full bill. Refer to AP Bill Prior to Receiving - KB article.

1. Bill the items that have not been received.

   1. Select Create Bill with No Receivers.

   2. Enter Amount of items to bill that were not Received in Balance Due

   3. Create Bill

2. Bill the items that have been received.

   1. Select the releases received.

   2. Be sure to enter the same AP Reference (Invoice no.)

   3. Create Bill.

3. It will appear in Review Bills/Credits/Debit Memos as two lines. Confirm selecting “Show POs with No Receivers.

4. If you try to do it all together, you will get this message.

   1. “If you are creating a bill without a purchase order receiver, you cannot include any line items in this bill

Paying a Bill Before Receiving - Deposit Only

Remember, bills with no receivers have not hit AP yet. They are listed in Pay Bills for visual purposes but can not be checked for payment.

• In order to pay a bill before receiving the PO you would need to make a deposit on the PO itself.

Deposits on POs will be automatically applied once the PO is received. Refer to Vendor Deposits - KB

And the Remittance Advice would look like this

• Once you have processed the receiver

• Access the Enter Bills screen and enter the PO in the search bar and click search.

• Note that the receiver is now present in the grid.

• You can still see the Related bill and it is still yellow if the POs/Releases section is collapsed (The Related Bills section is showing).

• Once you checkmark the receiver, the Bills with No Receivers grid appears, listing the bills attached to that PO.

• Highlight the corresponding bill. The Sub Total matches the ExtNet of the receiver, so the Link button at the bottom right will become enabled.

Paying a Bill After Receiving

Depending on agreement with Vendor, you may want to pay the 1st release, and not pay the 2nd release until received. Or they can both be paid at the same time.

Ledger transactions look like this on two different bills.

But the Check will be for the total Amount of items received and Remittance Advice will look like this.