Supplier Invoices

Supplier invoices record the amounts your business owes to its suppliers. This guide covers how to create, approve, post, and reverse supplier invoices in Ayiza.

Invoice statuses

A supplier invoice moves through these statuses during its lifecycle:

Status	Meaning
Draft	The invoice has been created but is not yet finalised. You can still edit it.
Approved	The invoice has been reviewed and approved. An invoice number has been assigned. It is ready to post.
Posted	An accounting document has been created in the general ledger. The amount is now reflected in your financial reports.
Paid	The invoice has been settled, typically through bank reconciliation.
Reversed	The posted invoice has been reversed with a reversal accounting document.
Rejected	The invoice was rejected during the approval process.

Creating a supplier invoice

Step 1: Open the Supplier Invoices tile

Navigate to the Payables section (or the Finance tile group, depending on your navigation setup) and select Supplier Invoices.

Step 2: Click Create

Click the Create button to open a new supplier invoice form.

Step 3: Fill in the header fields

Field	Description	Required
Company Code	The company code this invoice belongs to.	Yes
Supplier	The business partner (supplier) who issued the invoice. Must be set up as a supplier in the selected company code.	Yes
Document Type	The type of invoice. Use Supplier Invoice for standard invoices, or Supplier Credit Memo for credit notes.	Yes
Invoice Date	The date printed on the supplier's invoice.	Yes
Posting Date	The date the invoice should be recorded in the general ledger. Defaults to the invoice date if not specified.	Yes
Currency	The currency of the invoice. Can differ from the company code currency.	Yes
Exchange Rate	If the invoice is in a foreign currency, you can enter a specific exchange rate. If left blank, Ayiza uses the rate from the exchange rate table for the invoice date.	No
Terms of Payment	The agreed payment terms (for example, Net 30). Used to calculate the due date. Defaulted from the supplier's company code settings but can be changed.	Yes
Total Amount	The gross total of the invoice including tax.	Yes
Tax Amount	The total tax (VAT) amount on the invoice.	Yes
Ship-From Country	The country the goods or services were shipped from. Relevant for tax determination.	Yes
Ship-To Location	The location the goods or services were delivered to.	Yes
Reference	Your internal reference or the supplier's invoice number for cross-referencing.	No
Self-Billing	Tick this if the invoice was generated by your organisation (self-billing arrangement).	No

Step 4: Add invoice lines

Each line represents a product or service on the invoice. Click Add Line and fill in the following:

Field	Description	Required
Line	The line number (assigned automatically).	Yes
Product	The product or service being invoiced. Must exist in the company code's product catalogue.	Yes
Quantity	Number of units.	Yes
Unit of Measure	The unit of measure for the quantity (for example, EA for each, HR for hour).	Yes
Unit Price	Price per unit in the invoice currency.	Yes
Net Amount	The net (pre-tax) amount for this line. Equals Quantity times Unit Price.	Yes
Tax Code	The VAT or indirect tax code that applies to this line. Determines the tax rate.	No
Tax Amount	The tax amount for this line. Calculated automatically from the net amount and tax code.	No
Withholding Tax Code	If withholding tax applies, select the appropriate code configured for this supplier.	No
Withholding Tax Amount	The withholding tax amount, calculated from the withholding tax code.	No
Cost Center	The cost center to charge.	No
Investment Center	For capital expenditure lines.	No
Project	The project to charge, if applicable.	No
Segment	The business segment, if applicable.	No
Comment	A free-text description for this line.	No

You can add as many lines as needed. The sum of line net amounts must equal the header total amount, and the sum of line tax amounts must equal the header tax amount.

Step 5: Save

Click Save to create the invoice in Draft status. You can return to edit it later.

Multi-currency invoices

When you enter an invoice in a currency that differs from your company code currency, Ayiza handles the conversion automatically:

1. Transaction currency -- The currency on the invoice (for example, USD). All line amounts are in this currency.
2. Company code currency -- Your primary operating currency (for example, GBP). Ayiza converts all amounts using the exchange rate.
3. Functional currency -- If your company code has a functional currency configured (common for reporting under IFRS), amounts are converted to this currency as well.
4. Group currency -- If you operate within a group structure, amounts are also converted to the group currency for consolidated reporting.

The exchange rate is determined as follows:

• If you enter an exchange rate on the invoice header, that rate is used.
• If you leave it blank, Ayiza looks up the rate in the exchange rate table for the invoice date.

All three currency conversions happen automatically when the invoice is posted. You do not need to enter amounts in each currency manually.

Tax handling

VAT visibility

Tax fields on supplier invoices are controlled by the company code's VAT registration status:

• If Is VAT Registered is true on the Finance Company Code, tax code fields are visible on all invoice lines. Only Input Tax codes are available (output tax codes are not shown).
• If Is VAT Registered is false, all tax fields are hidden on the invoice. In this case, Ayiza uses the Purchase Out of Scope Tax Code from the Finance Company Code settings automatically where applicable.

VAT codes

Each invoice line can have a Tax Code that determines the applicable VAT rate and tax type. When you select a tax code:

• The tax rate is looked up from the tax code configuration.
• The tax amount is calculated as the net amount multiplied by the tax rate.
• The gross amount (net plus tax) is calculated automatically.

Common scenarios:

• Standard-rated supply -- Tax code with the standard VAT rate (for example, 20% in the UK).
• Zero-rated supply -- Tax code with a 0% rate. The tax amount is zero but the transaction is still recorded for VAT reporting.
• Exempt supply -- No VAT applies. Use the appropriate exempt tax code.
• Reverse charge -- For certain cross-border purchases, the buyer accounts for the VAT. Use the reverse charge tax code.

Withholding tax

If your supplier is subject to withholding tax (for example, Construction Industry Scheme deductions in the UK) and Is Withholding Tax Active is set on the company code supplier record, you can specify a Withholding Tax Code on each invoice line. The withholding tax amount is calculated based on the code's rate and deducted from the payment amount.

You can tick Exclude Withholding Tax on individual lines where withholding tax should not apply — this clears the withholding tax code for that specific line.

Investment center

The Investment Center field on invoice lines is only visible if Is Investment Center Active is true on the Finance Company Code. When visible, the investment center may be defaulted from the product configuration.

Approving a supplier invoice

Once you have entered all lines and verified the details:

1. Open the invoice.
2. Click Approve.

Ayiza performs the following checks:

• The invoice must be in Draft status.
• The invoice must have at least one line.
• The sum of line total amounts must match the header total amount.
• The sum of line tax amounts must match the header tax amount.

If all checks pass, the invoice moves to Approved status and receives a system-generated invoice number. You can no longer edit the invoice at this point.

Posting a supplier invoice

Posting converts the invoice into an accounting document in the general ledger. To post:

1. Open the approved invoice.
2. Click Post.

Ayiza performs the following checks before posting:

• The invoice must be in Approved status.
• The financial period for the posting date must be open for payables.
• The supplier must not be locked or sanctioned.
• None of the products on the invoice lines may be locked or sanctioned.

What happens when you post

When posting completes successfully, Ayiza creates an accounting document with the following entries:

Entry	Debit/Credit	Account	Amount
Expense lines	Debit	G/L account from each invoice line (determined by the product's account determination)	Net amount per line
Tax lines	Debit	Input tax G/L account (determined by the tax code)	Tax amount per line
AP control line	Credit	Supplier's AP control account (configured on the company code supplier record)	Total invoice amount

If withholding tax applies, the withholding tax amount is separated into its own line debiting the withholding tax G/L account.

All amounts are recorded in:

• Transaction currency (the invoice currency)
• Company code currency
• Functional currency (if configured)
• Group currency (if configured)

The system also creates tax register entries that feed into your VAT return.

After posting:

• The invoice status changes to Posted.
• An accounting document number is assigned and linked to the invoice.
• The invoice amount appears as an open item in the supplier's account.

Reversing a posted invoice

If a posted invoice was entered in error or needs to be corrected, you can reverse it rather than deleting it (posted invoices cannot be deleted).

1. Open the posted invoice.
2. Click Reverse.
3. Enter a reversal date (must be on or after the original posting date).
4. Select a reversal reason.
5. Confirm the reversal.

Reversing creates a new accounting document that mirrors the original but with all debit and credit entries swapped. The original invoice status changes to Reversed. The original and reversal accounting documents are linked by a shared reversal transaction ID.

Tax register entries are also reversed, so the reversal is reflected in your VAT reporting.

caution

You cannot reverse an invoice that has already been settled (paid) through bank reconciliation. You must first undo the bank reconciliation match before reversing the invoice.

Supplier balances and open items

To see what you currently owe a supplier:

1. Navigate to Supplier Invoices.
2. Filter by supplier and by status Posted to see all unsettled invoices.

Each posted invoice that has not yet been paid or reconciled is an open item. When the invoice is paid and matched during bank reconciliation, it becomes a cleared item and no longer contributes to the outstanding balance.

You can also view supplier balances through the General Ledger by looking at the AP control account for a specific supplier.

Payables Aging Report

The Payables Aging Report shows you how much you owe to suppliers and how long each amount has been outstanding. It helps you manage cash flow and prioritise payments.

How to run the report

1. Navigate to the Payables Aging Report tile.
2. Select the Company Code to report on.
3. Set the Reference Date (usually today's date). This is the date used to calculate how many days each item is overdue.
4. Optionally filter by a specific supplier using the Business Partner field.
5. Click Generate.

Understanding the aging buckets

The report groups open items into time-based buckets. The default bucket boundaries are:

Bucket	Range	Meaning
Not Yet Due	Due date is on or after the reference date	The invoice is not overdue. Payment is not yet expected.
1 -- 30 days	1 to 30 days past due	Recently overdue. Typically within normal payment tolerance.
31 -- 60 days	31 to 60 days past due	Moderately overdue. May warrant a follow-up.
61 -- 90 days	61 to 90 days past due	Significantly overdue. Review the relationship and payment plans.
91 -- 120 days	91 to 120 days past due	Seriously overdue. Escalation may be appropriate.
Over 120 days	More than 120 days past due	Long-outstanding. May need to be written off or disputed.

tip

The bucket boundaries (30, 60, 90, 120 days) can be customised per company code by your administrator through the Due Date Bucket Configuration. If custom boundaries are set, the report labels adjust automatically (for example, "1 -- 45 days" instead of "1 -- 30 days").

Report columns

Each row in the report represents one supplier. The columns show:

• Business Partner -- The supplier number and name.
• Bucket amounts -- The outstanding amount in each aging bucket.
• Total -- The total amount owed to this supplier across all buckets.
• Line Count -- The number of open invoice lines for this supplier.

The report also shows totals at the bottom, summing all suppliers.

Currency roles

Amounts in the aging report are available in three currencies:

Currency role	Description
Company Code Currency	Your primary operating currency. This is the default view.
Functional Currency	The currency used for functional reporting (for example, IFRS).
Group Currency	The currency used for group-level consolidated reporting.

You can switch between currency roles to view the report in whichever currency is most relevant.

Using the report

Common uses of the Payables Aging Report:

• Cash flow planning -- See what payments are due soon (the "Not Yet Due" bucket) and what is already overdue.
• Supplier relationship management -- Identify suppliers you owe the most to and prioritise payments.
• Month-end review -- Verify that AP balances are accurate before closing the financial period.
• Audit preparation -- Provide a snapshot of payables at a given date for auditors.