Document and Payment Numbers

Each document or payment number consists of two fields: the type field and the number field.  The type field identifies the type of document being processed: invoice, debit / credit memo, cash sale, finance charge, unpaid/claimed back drafts, check, clearing transaction, write-off, bill of exchange, or bill of order.  Multiple payment types, such as notes and drafts, may be defined.  The number field uniquely defines the transaction within the transaction type.  This section describes the requirements for document and payment number assignment.

Document numbers for document types are user-defined.  All document numbers assigned to single company/location invoices must be unique.  Once an invoice is entered into the system, the document number cannot be changed.  To correct an invalid document number, a correction transaction must be entered to reduce the invoice to zero.  Then another invoice must be entered with the correct document number. 

In the case of automatic numbering, the document type will be used to retrieve the next available document number on Reference File category 440.  Some companies may also have their own document numbering scheme.  Therefore, before retrieving the next available document number on Reference File category 440, the company/location records are retrieved on Reference File category M12 to check for an existing record.  If a record is found, then the external program defined on this category will be used to retrieve the document number.  For more information about the external numbering program, refer to the Sequential Numbering of VAT Documents (AR) section within the VAT Processing key concept in this module.

Installments are uniquely identified by the invoice number and a three digit sequence number at the end of the invoice number that specifies the installment.

If an invoice is created along with a bill of exchange, a document number will be assigned to that invoice and a draft number will be created.   Drafts and invoice numbers are cross-referenced.  The invoice field number will appear on the bill of exchange and the draft number will appear on the invoice.

In most situations, a sequential number is assigned to each invoice prepared for a company/location.  Sequential numbering ensures that each invoice is unique.  Sequential numbering also provides an audit trail for invoice numbers assigned to paid and open invoices and numbers not yet assigned.  If sequential fiscal numbering is set-up, the document number is used as the fiscal number, and document numbering should be set-up as both automatic and manual on Reference File category 300 (A/R System Defaults).

Document numbers for cash sale transactions can be handled in the same manner as invoice numbers.  Document numbers assigned to a single company/location's cash sale transactions must be unique.

Document numbers assigned to a company/location's debit and credit memos must also be unique.  If charges and credits resulting from one business transaction are entered separately into the system, the charges must be entered under one document number and the credits under another document number.  However, if the net result of the charges and credits are entered as one document, only one document number is required.

The document type and number define each transaction.  For example, if a debit memo is assigned the same number as an invoice, the type field distinguishes the debit memo from the invoice.  For each document type, the system will allow you to enter multiple document codes.  The document codes are defined on Reference File category 329.  Each document code will be assigned a document description and a document group to which the document belongs.  The following document groups will be valid in Accounts Receivable:

1 - Invoice
2 - Debit memo
3 - Credit memo
4 - Cash sale
5 - Finance charges
6 - Unpaid/Claimed back draft

The document type for each transaction will be determined by the document group entered for the document code on the reference file.  For example, if you wanted to distinguish between different invoices, you would set up the invoices with different document codes on Reference File category 329, such as IH, IC, etc.  For each of these document codes, you would define the document group as '1' for invoice.  This gives you the ability to enter multiple document codes for each document type.  Document types defined on Reference File category 328 will be used as defaults for the module.

Even though an invoice and a credit memo are assigned the same number, the system does not automatically apply the credit memo to the invoice.  Credit memos can be applied to specific invoices only through the use of clearing transactions.

In some countries, document types are grouped by sector.  On Reference File category 329, you can specify a sector in the Document Sector field.  This field will be used to categorize different document types.

Payment numbers assigned to checks, drafts, clearing transactions, and write-off transactions are user-defined and must be unique within each customer.  Normally, check numbers are taken from the customer check form or remittance advice, although user assignment of check numbers is allowed.  Payment numbers entered on clearing transactions and write-offs are normally sequential numbers that are strictly controlled so their usage can be closely audited.

Payment numbers for a bill of exchange must exist on the Draft Master File.  The payment number can be the same number that was created for the bill of exchange during invoice entry time or it can be another draft that was created for the customer.  For a bill of order, the payment number is user-defined and must be unique.

Document numbers assigned to finance charges are assigned sequentially within each finance charge code.  The finance charge code used will be taken from Reference File category 328.  This code can be changed between customer statement runs, however; the new finance charge code entered must be defined on Reference File category 329 with a document group of '5' (finance charge).  The system keeps track of the last number assigned to a finance charge for a specific finance charge code and increments the number for each additional finance charge generated for the finance charge code.