3 Replies Latest reply: Jan 21, 2013 9:07 PM by Ivruksha RSS

    Reurring inovoice in AP -real examples

    rehan ali
      Hello

      When we use recurring invoice in AP?I know this functionaltiy and tested completely.But want to know the concept with real business examples?
        • 1. Re: Reurring inovoice in AP -real examples
          Ivruksha
          Hi Rehan Ali,

          From functionality perspective, it can be used in any scenario where the payment amount and Intervals are certain, like...

          1) Payment of Rent to landlord 5th of every month ...
          2) Payment of Insurance Premium every quarterly ...
          3) EMI payments to Banks / Financial Institutions ....

          In all the above cases, one needs to create Invoice in payables before making the payment, the data that is being used for creating Invoice differs only in the Invoice Date aspect, all other features remains the same (most of the time ..) ... By configuring Recurring invoices, system would promptly create the invoice for you automatically at the said interval ....saving data entry time of the end user and eliminates the possibility of any lapse in Invoice getting created ...

          Regards,
          Ivruksha
          • 2. Re: Reurring inovoice in AP -real examples
            rehan ali
            Let example of insurance,if the insurance amount is paid on monthly basis but amount change for 12 months ?but other details of invoice remain same.In this case,how can i handle
            • 3. Re: Reurring inovoice in AP -real examples
              Ivruksha
              Hi Rehan Ali,

              you can configure Recurring Invoices in such a fashion the invoice amount increases on a fixed percentage every month ....
              Navigate to Invoices > Entry > Recurring Invoices ...
              Query an existing Recurring Invoice configuration ....
              Click on the AMOUNT tab ..
              You can see First amount field followed by Change field .. which would have the Percentage ...so the subsequent amounts would increase by that much .....
              In addition, you have two more fields called Special Invoice Amount 1 and Special Invoice Amount 2 which can be charged for the specific periods .....

              Hence if you are aware on how much the increase is going to be, you can make use of the above feature ...
              If the amount cannot be determined by any means, then i would suggest you to have amount as Zero in recurring invoices, so that all future invoices would be generated with 0 value ... once the invoice gets created, you can query that invoice and modify the header amount, line amount and distribution amount and proceed further for validating the invoice and perform accounting for it ....Similar to the Skeleton type of Recurring Invoices in General Ledger Module ...

              Regards,
              Ivruksha