Business assumptions

In Microsoft Dynamics 365 for Finance and Operations only approved vendor invoices can be part of the payment proposal. 
Some vendors give such a high reduction on the vendor price that it is interesting to pay the vendor invoice, even if this invoice is not approved. This should be possible only if the general parameter pay unapproved invoices is set to yes and if the parameter pay not approved invoices is set to yes at the vendor card.

Invoices are registered in the invoice register. There are approved and not approved vendor invoices in the vendor invoice register. 
Usually not approved invoices will not be paid and cannot be a part of the payment proposal. If the general parameter: pay unapproved invoices and if the parameter possible to pay not approved vendor invoices on the vendor card are switched on, vendor invoices that are not approved can be selected for payment.

Basically, only approved invoices can be paid, so it is necessary to approve vendor invoices to get them to the vendor payment list. 

It is possible to add not approved vendor invoices (under certain conditions) to the payment proposal. Therefore, there is be a selection field “Payable” added to vendor invoices in the invoice register for these invoices where the parameter “Pay unapproved invoices” in the accounts payable parameters and on the vendor card is on.

The payment proposal might not only contain approved vendor invoices, but also unapproved vendor invoices.

When does a vendor invoice get the property payable? 

• The parameter in Accounts Payable “Pay unapproved invoices” is enabled and
• The parameter “Pay unapproved invoices” on the vendor card is enabled, and
• The user set the invoice manual to payable, or
• The invoice is matched and approved in the existing way.

 

Vendor invoices

Every vendor invoice from a vendor that has the parameter “Pay unapproved invoices” enabled has an extra parameter Payable (yes or no).
Vendor invoices come to the payment list if one of the conditions below is met:

• The user enables this setting manual or,
• The invoice is approved in the traditional way.

It should be known who approved the vendor invoice or who set the vendor invoice to payable. 

Vendor card

Only for some selected vendors the possibility is enabled to pay unapproved invoices. This can be set with the field “Pay unapproved invoices” on the vendor card. This field is only visible if the accounts payable parameter “Pay unapproved invoices” is enabled.

Payment proposal

Invoices are paid using a Vendor Payment Journal. In this journal approved vendor invoices are added using the payment proposal. The payment proposal contains approved invoices only. In the new situation vendor invoices that are marked as payable and are not approved should be added too.

There should be an extra checkbox “Approved vendor invoices only” added to the advanced parameters. This checkbox should be visible only if the parameter “Pay unapproved invoices” in accounts payable is enabled.

Only if this checkbox is not enabled invoices that are not approved but marked as payable are added to the payment proposal too. This checkbox is by default enabled.

Accounts payable – Payments – Vendor Payments journal – lines – Generate Payments

During posting the payment journal all payable invoices should be posted and settled like approved invoices. 
After posting there is no difference between approved and payable vendor invoices.

Assumptions, constraints, and principals

• All vendor invoices are registered in the Vendor invoice register. It is not relevant they get there manually or using ISP or an equal system for invoice registration. 
• In the Invoice register might be approved and not approved vendor invoices.

 

Vendor card

On the vendor card is a field “Pay unapproved invoices?”. 
This field is only visible if the parameter in Accounts payable as mentioned in the previous paragraph is set to Yes. This field is added at the tab Payment on the Vendor card.

 

Vendor invoices in invoice register

All content of this paragraph is applicable only if the setting “Pay unapproved invoices?” has the value Yes. 
 
At the invoice in the invoice register is a field “Payable”. 
This field is a Boolean with possible values Yes or No. The value of this field is inherited from the field "Pay unapproved invoices" on the vendor card.  

If the value of the field “Pay unapproved invoices” on the vendor card is No, this field cannot be changed. If a user tries to change this field an error message “Editing not possible" is displayed. The setting "Pay unapproved invoices" on the vendor card is set to No.”

To know who changed the value of the new field, the User ID is added to the field “approved by”. 
These rules are applicable to fill the field User ID:

• If the field Payable is inherited from the vendor card, the UserID that put the invoice in the invoice register is displayed. 
• If the value Payable is set manual to Yes, this is the UserID of who executed this setting. 
• If the invoice was approved, it is the approver of the invoice. 

Vendor payments

Vendor invoices are paid using the Vendor payment journal. In the payment proposal all approved invoices that can be paid are collected. 

This should be added with all invoices that can be paid and have the Status Payable Yes.

There is an checkbox “Pay unapproved invoices” at the advanced parameters. This checkbox is only visible if the parameter “Pay unapproved invoices” on accounts payable is enabled.

Only if this checkbox is enabled invoices that are not approved but marked as payable are added to the payment proposal too. This checkbox is by default enabled.

 Selected invoices from the Payment Proposal will be transferred to the lines in the vendor payment journal.