Sometimes, a vendor invoice can be in a pending status for some time, even extending beyond the closing date for the period. When you’re ready to post the invoice after the period has closed, you won’t be able to use the original posting date. As a result, an Accounts payable clerk must change all the posting dates on “unapproved” invoices to the new period (next month). This parameter lets the system change the posting date automatically, based on your business needs. As a result, the due date, cash discount date and exchange rate of the invoice can be adjusted accordingly.
Now let’s see this with one example:
Step-1: Enable feature
Step-2: Set Parameters
Account payable > Setup > Account payable parameters > Ledger and sales tax
- No change – The system doesn’t automatically change the posting date during posting. This value is selected by default.
- Always change posting date to system date – The system automatically changes the posting date to the system date during posting.
- Change posting date to system date when posting date period is closed or on hold – The system changes the posting date to the system date during posting, but only if the corresponding period of the posting date has a status of Closed or On hold.
- Change posting date to first day of new period when posting date period is closed or on hold – The system changes the posting date to the first day of the new open period, but only if the corresponding period of the posting date has a status of Closed or On hold.
Impact of posting date changes
When the posting date on a pending vendor invoice is changed, the change has the following effects:
- Due date
If the Invoice date field is blank, the due date is recalculated based on the new posting date and payment terms.
If the Invoice date field was previously set, the posting date change doesn’t affect the due date.
- Cash discount date
If the Invoice date field is blank, the new posting date is used to calculate the cash discount.
If the Invoice date field was previously set, the cash discount isn’t changed.
- Exchange rate – The exchange rate date is determined by the setting of the Update vendor accounting using the invoice date option on the Invoice tab of the Accounts payable parameters page (Account payable > Setup > Account payable parameters).
- If this option is set to Yes, the invoice date is used, and the posting date change doesn’t affect the exchange rate.
- If this option is set to No, the posting date is used to calculate the exchange rate. When the posting date is updated, accounting and reporting amounts are recalculated. Therefore, matching validation must be done again.
Two other fields on the Invoice tab of the Accounts payable parameters page (Account payable > Setup > Account payable parameters) affect invoice processing:
- If the Check the invoice number used field is set to Reject duplicates within fiscal year, the system uses the posting date to check for duplicate invoices during invoice posting.
- If the Require document date on vendor invoice field is set to Error option, the Invoice date on pending invoice header field is required. If the invoice date is later than the posting date, the system shows an error message.
Step-3: Lets create few invoices with posting date as 31st Jan
Step-4: Put Jan period on hold
Step-5: Post invoice and validate results
That’s it for this blog, thank you !!! keep reading and sharing !!!