💼

AP Invoicing Settings Overview

Jul 7, 2025

Summary

  • The meeting provided an in-depth walkthrough of general invoicing settings available in the AP Administration section of the system, accessible only to users with administrative permissions.
  • Key topics included the configuration and impact of PO Auto Close settings, highlighting differences between hard close and soft close, along with a step-by-step review of other AP-related configuration options.
  • Several best practices and default recommendations were discussed, but final settings were noted to be organization-specific.
  • Additional areas (supplier configuration, receipt reminders) were noted but deferred to future sessions.

Action Items

  • (None noted in transcript.)

Accessing AP Administration & General Settings

  • Only users with the AP Administration permission can access invoicing configuration settings.
  • Settings include enabling/disabling organization-level AP features, accessible via the "Configure AP Settings" menu.
  • Changes made to settings require saving before navigating away to avoid losing updates.

PO Auto Close Settings

  • "PO Hard Close" restricts creation of receipts or invoices against a closed purchase order; this is generally synchronized with ERP systems.
  • "Soft Close" keeps the PO open in the ERP for a specified time, even if it appears closed in the system, to allow for automated receipts and invoices.
  • The delay between soft close and hard close can be configured (default is zero, which disables soft close).
  • Setting "Wait for paid status update to close POs" allows the ERP to automatically close POs when fully invoiced, reducing manual steps.
  • "Allow receipts against soft close POs" can be used to permit receipts even after soft close.

Standard and Recommended Invoicing Settings

  • "Use org managed list of payment terms" should be enabled for organizations managing payment terms centrally; enabling may reveal additional subsettings.
  • Enable "user of tolerance issues before receipt is submitted" to provide warnings when invoice tolerances are exceeded; only warnings, not submission blocks.
  • "Prevent receipt submission if over received" should be on to prevent excess receipts; return receipts remain possible.
  • "Prevent receipt submission if PO line canceled" can be left off to allow some flexibility.
  • Early payment discounts: Calculated from subtotal by default; set to auto-apply and always display, or hide after the discount date as preferred.
  • Show negative values on credit memos and for split amounts for transparency in re-encumbering funds.
  • Restrict "create cost receipt" option to flagged POs only if workflow requires, using a specific robot to flag them.
  • Convert PO price splits to percentage splits on invoices for consistency.
  • Disable "enable receipt mapping for invoices" if not used by the organization.
  • If attachments are uploaded with invoices, the system will default to using internal PDFs as invoice images.
  • Optionally, prevent PO attachments from being transferred to invoices.
  • Miscellaneous, non-taxable fees can be added to invoice headers via search-and-select functionality.

Additional Functional Settings

  • Changing invoice owner can update the business unit and department fields automatically.
  • Option to update invoice custom fields based on new invoice owner.
  • Use contract invoice approvers on contracts to direct approvals to relevant contract-specific teams.
  • Configure system to use invoice date, not creation date, for exchange rate calculations if preferred.
  • Prevent system from re-running matching on already paid invoices to lock document history.

Areas Deferred for Future Discussion

  • Supplier configuration parameters and receipt reminder emails will be covered in separate sessions or videos.

Decisions

  • Set PO Auto Close delay to zero — This disables soft close for POs, opting for immediate closure unless otherwise needed.
  • Enabled wait for paid status update for PO closure — Allows ERP-integrated automation of PO closure upon full payment.

Open Questions / Follow-Ups

  • Detailed review of supplier configuration and receipt reminder settings pending for future sessions.