Set up posting methods to categorize incoming invoices

If an invoice is received from another application, e.g. edoc invoice, a distinction must be made as to which invoice category is involved. Depending on the invoice category, you can configure different posting methods.

There are basically these invoice categories:

• Invoice without order reference category: An invoice without order reference is an invoice without reference to an order. An invoice without order reference can be, for example, a monthly invoice for your telephone bill. This invoice category has no purchase order number.

• Invoice with order reference category: An invoice with order reference is an invoice with a reference to an order. There is a packing slip for this type of invoice, for example. This invoice category has a purchase order number.

The posting methods control the corresponding treatment of the invoice in Microsoft Dynamics 365 for Finance and Operations. The following posting options are available to you:

• Invoice register - ledger: for invoices without order reference (”cost invoice”).

• Invoice register - fixed assets: for invoices for fixed assets without purchase order reference (invoice without order reference).

• Purchase order: for pending vendor invoices with purchase order reference (invoice with order reference).

Suppose you want to define a posting method for an invoice without order reference with the offset account of type General ledger account.

To enter the general data for the posting method

1. Go to edoc invoice cockpit > Setup > Bases > Posting methods.

2. Click on New to create a posting method.

3. Enter the corresponding abbreviation in the General section under Booking method: KoRe_ReErf. Your users will see this abbreviation in the edoc invoice cockpit overview of all invoices.

4. Enter a name for the posting method under Name, e.g. Invoice without order reference.

5. Under Type, enter the appropriate processing of the invoice, e.g. Invoice register - ledger.

6. Under Sequence, enter a number that specifies the sequence of the check routine. If you have configured several posting methods, you can use the specified number to define at which point in the sequence of all posting methods this posting method should be checked.

7. Specify whether the posting method should be active. By default, the posting method is active once saved.

To enter the posting journal for the "Invoice register" posting method

You must map each posting method of the Invoice register type to a posting journal in Microsoft Dynamics 365 for Finance and Operations.

The following rules apply when creating a posting method:

• For Invoice register - ledger, you must select a journal of the journal type Vendor invoice recording. Enter the following:

  • For Offset account proposal > Account type, enter Ledger.

  • For Voucher series > New voucher, enter In connection with balance.

  • Make sure that the Approval workflow function is deactivated.

• For Invoice register - fixed assets, you must select a journal of the journal type Vendor invoice recording. Enter the following:

  • For Offset account proposal > Account type, enter Fixed assets.

  • For Voucher series > New voucher, enter In connection with balance.

  • Make sure that the Approval workflow function is deactivated.

  • You must activate the Allow multiple transactions within one voucher option under General ledger > Ledger setup > General ledger parameters > Ledger if you want to use multiple transactions for one document.

For an invoice of the Invoice register type, you can also specify a person who approves the invoice and the invoice journal by default.

Here's how

1. Under edoc invoice cockpit > Setup > Bases > Posting methods > Posting journal, select the name of the register journal for the invoice type in the Journal name field.

2. Enter a more detailed explanation for the journal under Description. If you do not enter a description, the status description of the journal is adopted by Dynamics 365 for Finance and Operations.

3. Specify a person under Default approver, which is displayed under Approved by in the invoice register. If you do not specify a default approver, the assigned person that you find under Microsoft Entra ID applications in the User ID column is used as the approver.

4. Move the slider for Approve journal to Yes to approve the invoice register journal in Dynamics 365 for Finance and Operations.

5. Move the slider for Lock journal to Yes if you want to prevent the invoice register journal from being changed.

Selecting the posting journal displays the relevant conditions, e.g. Text posting, which you have configured accordingly.

To specify the conditions for automatic posting

If you want to post an invoice automatically, you can specify under edoc invoice cockpit > Setup > Bases > Posting methods > Automatic posting in which cases and when an invoice should be posted automatically.

• Auto posting type: You can select one of the following options:

  • None: No automatic posting is performed.

  • After journal created: Once the journal has been created, the invoice is posted as soon as the defined time period has been reached under Time specification.

  • Fixed Posting time: All open journals are posted at a specific time that you have defined under Time specification.

• Time specification: Depending on the option selected for the automatic posting type, enter either the time period or the time.

To activate the posting method

Finally, activate the posting method in the General section by moving the slider to Yes.

To enter the posting settings for a purchase order

There is a special feature of the Purchase order posting method in connection with edoc invoice: by default, the data for Cash discount, Payment method and Payment terms of the edoc invoice purchase order are overwritten if this data is available.

You can prevent this from being overwritten: Activate the slider under edoc invoice cockpit > Setup > Bases > Posting methods > Posting settings > Do not update purchase order data.

The next step is to configure the automatic processing of incoming invoices: Configure automatic processing for edoc invoice cockpit