Invoices

The Invoices app allows you to manage payment for the materials that your library ordered. You can also search for and edit existing invoices as needed.

Definitions of terms used in the Invoices app:

  • Accounting code. The code used by your library in your payment system in reference to an organization.
  • Acquisitions units. An additional layer you can add to acquisitions records that restricts a user’s ability to interact with those records unless they have been assigned to that unit. Units are defined and determined by your library in the Settings app. See Settings > Acquisition units for more information.
  • Adjustments. Charges added to an invoice in addition to the materials ordered. Shipping costs and exchange rates represent common adjustments.
  • Batch group. Groups that process their invoices together. Invoices from the same library are generally processed together.
  • Funds. Specific allocations of money within a ledger.
  • Invoice lines. The individual line items being paid for within each invoice. Each line consists of a description of the materials being paid for, the costs incurred, and a vendor reference number. Invoices are primarily a sum of the information from these lines.
  • Organizations. Any institution with whom your library interacts (this may or may not be an institution from whom you purchase materials).
  • Vendor. Any institution from whom your library purchases materials.
  • Vendor invoice number. The number provided by the vendor for this invoice.
  • Voucher number. A number generated by the system to identify the payment request exported from FOLIO to an external financial system.

Permissions

The permissions listed below allow you to interact with the Invoices app and determine what you can and cannot do within the app. You can assign permissions to users in the Users app. If none of these permissions are assigned to a user, they are unable to see the Invoices app or any related information.

The following are all the Invoices permissions:

  • Invoice: All permissions for create, view, edit and delete invoice. This permission allows the user to create, view, edit, and delete invoices.
  • Invoice: Assign acquisition units to new invoice. This permission allows the user to assign acquisition units to new invoices.
  • Invoice: Approve invoice. This permission allows the user to approve invoices.
  • Invoice: Download batch file from invoice record. This permission allows users to download the batch file from the invoice record.
  • Invoice: Manage acquisition units. This permission allows the user to change the assignment of acquisition units for an invoice.
  • Invoice: Pay Invoice. This permission allows the user to approve invoices for payment.

Creating an invoice

Invoices contain a list of the payments due for materials ordered by your library from vendors.

  1. In the Invoices pane, click New.
  2. In the Create vendor invoice window, fill in the Invoice information, Adjustments, Vendor information, Extended information, and Links & documents sections. For more information on the fields and actions available in these sections, see the section descriptions below.
  3. Once you have included all of the information you want about the invoice, click Save & close. The invoice is saved and added to the Invoices pane.

Invoice information

This section contains header information. Invoice date, Status, and Batch group are the only required fields in this section.

  • Invoice date (required). The date the invoice was created.
  • Status (required). The status of the invoice. The default status for a new invoice is “Open.” “Reviewed” is also available in the drop-down list.
  • Payment due. The date when invoice payment is due.
  • Terms. The additional terms associated with the invoice, such as business or contractual terms.
  • Approval date. The date a user approved the invoice to move forward.
  • Approved by. The user who approved the invoice.
  • Acquisitions units. The acquisitions units assigned to the invoice.
  • Bill to name. In the Bill to drop-down list, select the billing address for the invoice. Once you select an address, the billing address appears. Addresses are configured in the Settings app. For more information, see Settings > Tenant > Addresses.
  • Batch group (required). The batch group with whom the invoice will be grouped.
  • Sub-total. The cost of all the items ordered.
  • Total adjustments. The cost of all the adjustments for the invoice.
  • Total amount. The combined cost of the items ordered and adjustments for the invoice.
  • Lock total. The total expenditure for the invoice.
  • Note. Any additional comments relevant to the invoice.

Adjustments

Adjustments are costs attached to an invoice beyond the items ordered. Shipping rates and exchange rates represent two common adjustments. You can either select a preset adjustment from the drop-down menu or create a new one.

To create preset adjustments, see Settings > Invoices > Adjustments for more information.

Selecting an adjustment

Click Add adjustment to select from a list of preset adjustments. These options represent adjustments used previously by your library.

Creating an adjustment

If creating a new adjustment, click Add adjustment.

  • Description (required). Describes the adjustment.
  • Amount (required). The cost of the adjustment.
  • Type. Select a currency or a percentage. Note: This choice applies to the amount you entered previously.
  • Pro rate (required). Select the method by which the adjustment should be proportionally distributed: By line, By amount, By quantity, or Not prorated.
  • Relation to total (required). Select one: In addition to, included with, or separate from.
  • Export to accounting. Select this checkbox to send the adjustment detail in the voucher information that would be sent to your external payment system regarding this invoice.

Vendor information

  1. Enter the Vendor invoice number provided to you by the organization.
  2. To select an organization, click Organization look-up. In the Select Organization dialog, find the organization using the search box and/or filters. Click the organization to select it.
  3. The vendor’s Accounting code is provided automatically once you select the vendor. If you need a different code, select one from the drop-down list.

Extended information

  1. Select a Payment method from the drop-down menu: Cash, Credit card, EFT, Deposit account, Physical check, Bank draft, Internal transfer, or Other.
  2. If you want to check for existing subscriptions, select the Check subscription overlap checkbox. Note: System logic is not currently implemented, so the system doesn’t check for overlapping subscriptions.
  3. If you want to send a voucher to an external financial system, click the Export to accounting checkbox.
  4. Select a Currency from the drop-down list. The default value is stored in Tenant settings as the primary currency. For more information, see Settings > Tenant > Language and localization. If you select a currency other than the default, the system will display the Current exchange rate.
  5. If you want to enter an exchange rate value to override the Current exchange rate value, select the Use set exchange rate checkbox and enter the rate in the Set exchange rate box.

This section allows you to attach documents to an invoice record, such as digitized physical invoices or emails from vendors. You can either upload files directly or add URL links to files stored in an external file management system. You can also attach documents to accompany an invoice, such as pictures of physical invoices or emails from a vendor.

  1. Click Add link.

  2. Enter a Link name to identify the file link.

  3. Optional: Enter an External URL for an active website.

If you want to delete a link, click the delete icon.

Add a document

There are two ways to add a document:

  • Drag and drop a file into the box provided, or
  • Click Choose file to add a document from your local files.

If you want to delete a document, click the delete icon.

Searching for an invoice

You can search for invoices in the Search & filter pane. To search for invoices, enter your search terms into the box. Select the All drop-down list to search through one of the following fields:

  • All. Searches through all fields in the drop-down list. This is the default search.
  • Voucher number. The voucher number for the invoice.
  • Vendor Invoice Number. The vendor invoice number for the invoice.
  • Accounting Code. The accounting code for the invoice.

You can also search for invoices by selecting any of the filters in the Search & filter pane. Additionally, you can apply the filters after you perform a search to limit your results. See the sections below for more information on the filters.

Status

In the Search & filter pane, click Status and select any applicable filters:

  • Open. Invoices currently open for your library. This is the default status for new invoices.

  • Reviewed. Invoices that have been reviewed by your library. To set an invoice as “Reviewed”, you can select the Reviewed status from the drop-down list on the Create vendor invoice screen or the Edit vendor invoice screen.

  • Approved. Invoices that have been approved by your library. Use the Action menu to approve an invoice.

  • Paid. Invoices that have been paid for by your library. Use the Action menu to pay an invoice.

  • Cancelled. Invoices that have been cancelled by your library. Note: The cancel invoice functionality will be available in future releases.

Vendor name

To search for invoices placed with a specific vendor, follow these steps:

  1. In the Search & filter pane, click Vendor name.
  2. Click Organization look-up.
  3. In the Select Organization dialog, search for the vendor.
  4. Click the vendor to populate the Vendor name field. The search results appear in the Invoices pane.

For information on searching for organizations, see Organizations > Searching for an organization.

Date created

To search for invoices based on the date they were created, follow these steps:

  1. In the Search & filter pane, click Date created.
  2. Enter a start date in the From box and an end date in the To box.
  3. Click Apply. The search results appear in the Invoices pane.

Invoice date

To search for invoices based on their invoice date, follow these steps:

  1. In the Search & filter pane, click Invoice date.
  2. Enter a start date in the From box and an end date in the To box.
  3. Click Apply. The search results appear in the Invoices pane.

Acquisitions unit

To search for invoices assigned to a specific acquisitions unit, follow these steps:

  1. In the Search & filter pane, click Acquisitions unit.
  2. Select the acquisitions unit you want from the drop-down list. The search results appear in the Invoices pane.

Tags

To search for invoices assigned with specific tags, follow these steps:

  1. In the Search & filter pane, click Tags.
  2. Select the tag(s) from the drop-down list. The search results appear in the Invoices pane.

Payment due

To search for invoices by payment due date, follow these steps:

  1. In the Search & filter pane, click Payment due.
  2. Enter a start date in the From box and an end date in the To box.
  3. Click Apply. The search results appear in the Invoices pane.

Payment method

In the Search & filter pane, click Payment method and select any applicable filters:

  • Cash. Invoices paid by cash.
  • Credit Card. Invoices paid by credit card.
  • EFT. Invoices paid by electronic funds transfer.
  • Deposit account. Invoices paid by direct deposit.
  • Physical check. Invoices paid by physical check.
  • Bank draft. Invoices paid by bank draft.
  • Internal transfer. Invoices paid by internal transfer.
  • Other. Invoices paid with a different method than those listed above.

Approval date

To search for invoices by approval date, follow these steps:

  1. Enter a start date in the From box and an end date in the To box.
  2. Click Apply. The search results appear in the Invoices pane.

Source

To filter for invoices by their source, select one or more of the following:

  • User. Invoices created by a FOLIO user.
  • API. Invoices created through an Application Programming Interface.
  • EDI. Invoices created through Electronic Data Interchange.
  • MARC. Invoices imported through MAchine-Readable Cataloging format record import.

Export to accounting

To filter for invoices based on the Export to accounting checkbox, select:

  • Yes. Invoices that have the Export to accounting checkbox selected.
  • No. Invoices that do not have the Export to accounting checkbox selected.

Viewing invoice details

Once you search for an invoice, the following information appears in the Invoices pane:

  • Vendor invoice number. The number provided by the vendor for this invoice.
  • Vendor. The vendor name.
  • Invoice date. The date the invoice was created.
  • Status. The status of the invoice.
  • Total amount (system). The combined cost of the items ordered and adjustments for the invoice.

In the search results, click on an invoice to view it. The Vendor invoice number pane displays with additional information about the invoice.

Invoice information

For information about the items in the Invoice information section, see Creating an invoice > Invoice information. In addition, this section also includes the following information:

  • Source. The method by which this invoice was created: User, API, EDI, or MARC.
  • Bill to address. The address associated with the Bill to name. For more information about the Bill to name, see Creating an invoice > Invoice information.
  • Total units. All the items listed for order in the invoice.

Invoice lines

Invoice lines allow you to link an invoice to open order purchase order lines or create invoice lines that are not associated with an existing order. Each line consists of the title, payment information, cost details, and adjustments.

This section lists all invoice lines for the order. The list displays the following:

  • POL number. The purchase order line number.
  • Description. The ordered title from the purchase order line.
  • Fund code. The code for the fund from which payment is made for the invoice line.
  • Quantity. The quantity ordered.
  • Sub-total. The cost of the invoice before adding adjustments.
  • Adjustments. The adjustments associated with the invoice.
  • Total. All the costs incurred.
  • Vendor reference number. A unique identifier for the material being acquired that is specific to the vendor. Different types of identifiers are provided by different vendors for different types of material.

Adding an invoice line to an invoice

  1. Click Add.
  2. In the Select order lines window, in the Search & filter box, enter keywords to search for the order line.
  3. Optional: Filter results.
  4. Click Search. Search results appear in the Search results pane.
  5. To select one or more order lines, select the checkboxes to the left of the POL number and click Save. The order lines appear in the Invoice lines table.

Note: If you select a purchase order line that contains a vendor that doesn’t match the organization for the invoice, a Confirmation dialog appears. Click Confirm to continue with the purchase order line selection or Cancel to choose a different purchase order line.

Creating a new invoice line

To create an invoice line that is not associated with an existing purchase order line, follow these steps:

  1. Click New.
  2. In the Create vendor invoice line window, fill in the Invoice information, Fund distribution, and Adjustments sections. For more information on the fields and actions available in these sections, see the section descriptions below.
  3. Click Save & close. A confirmation message appears and the invoice line appears in the Invoice lines table.
Invoice line information
  • Description. The description or title for the invoice line. This may contain the materials, service, or fee being invoiced.
  • PO line number. The purchase order line number for the invoice line.
  • Invoice line number. The invoice line number for the invoice line.
  • Vendor reference number. The vendor reference number for the invoice line. For more information about vendor reference numbers, see Orders > Adding an order line to an order > Vendor ref number.
  • Status. The status of the invoice line.
  • Subscription info. Subscription information for this invoice line.
  • Subscription start date. The date the subscription starts.
  • Subscription end date. The date the subscription ends.
  • Comments. Any additional comments for the invoice line.
  • Account number. The account number for the invoice line. This drop-down list contains vendor account numbers for the vendor selected on the invoice. If one or more vendor accounts exist in the Organization record for the vendor, the first account appears in this field as the default value.
  • Accounting code. The accounting code for the invoice line.
  • Quantity. The number of items in the invoice line.
  • Sub-total. The cost of all the items in the invoice line. Note: The subtotal is used for fund distribution in the currency defined in Settings > Tenant > Language and localization.
  • Release encumbrance. Releases the cost of the invoice against the fund to which it was assigned.

Fund distribution

  • Adjustment. The adjustments that apply to the funds for the invoice.
  • Fund. The fund to which you are distributing the amount.
  • Expense class. The expense class within the fund, to which you are distributing the amount.
  • Value. The monetary value assigned to the fund.
  • Amount. The amount of money charged to the fund.
  • Initial encumbrance. The initial amount committed to the fund.
  • Current encumbrance. The current amount committed to the fund.

Adjustments

  • Description. A description of the adjustment.
  • Amount. The cost of the adjustment.
  • Pro rate. Determine whether the value of the adjustment is distributed across multiple invoice lines.
  • Relation to total. Specifies whether the adjustment is included in, in addition to, or separate from the total amount of the invoice.

Vendor details

  • Vendor invoice number. The vendor invoice number for the invoice.
  • Vendor name. The name of the vendor.
  • Accounting code. The accounting code for the invoice.

This area includes all the links and documents attached to the invoice. Click the External URL or Document name to open the documents.

Editing an invoice

  1. Find the invoice you want to edit and select it.
  2. Click Actions > Edit.
  3. Edit the invoice. Not all fields are editable. The Status field is editable so that you can optionally set an invoice as “Reviewed” by selecting the Reviewed status from the drop-down list.
  4. Click Save & close. A confirmation message appears and the invoice is updated.

Invoice lines

A record of the invoice lines used in previous purchase orders remain in your library’s system. You can access these lines and reuse them at any time. You can also create new lines by providing the required information.

If an order line references a different vendor or currency than the one identified in the invoice, you will be asked to confirm this before proceeding. Note: Payments will be assigned according to the information identified on the invoice.

For more information on invoices lines, please see Invoices > Viewing invoice details.

Fund distribution

For information on fund distribution, see Viewing an invoice > Fund distribution.

Adjustments
Selecting an adjustment

For information on selecting an adjustment, see Creating an invoice > Selecting an adjustment.

Creating an adjustment

For information on creating an adjustment, see Creating an invoice > Creating an adjustment.

Deleting an invoice

Deleting an invoice is possible while in an Open, Reviewed, or Canceled status. Once an invoice has transitioned to Approved or Paid, it cannot be deleted.

  1. Find the invoice you want to delete and select it.
  2. In the Vendor invoice number pane, click Actions > Delete.
  3. In the Delete invoice dialog, click Delete. A confirmation message appears and the invoice is deleted.

Approving an invoice

Invoices require approval before the payment amounts are considered to be awaiting payment and in order for vouchers to be created. Only invoices with invoice lines can be approved. Only someone with the Approve invoice permission can perform this action. Note: Once one or more invoices connected to a purchase order line have been “Approved,” the payment status on the purchase order is changed to “Partially paid.”

If entering a locked total, all invoice lines and adjustment values must equal this lock total amount before a user can approve the invoice. Approving an invoice triggers the creation of the voucher and pending payment transactions. Vouchers are a mechanism for providing the information necessary to make invoice payments and can be exported to an external payment system. Each invoice generates a single unique voucher on which all fund charges are grouped by the fund external account number. For more information on exporting vouchers, see Settings > Invoices > Batch group configuration.

To approve an invoice, follow these steps:

  1. Find the invoice you want to approve and select it.
  2. In the Vendor invoice number pane, click Actions > Approve.
  3. In the Approve invoice dialog, click Approve. A confirmation message appears and the invoice is approved.

Viewing a voucher

Once an invoice is approved, an invoice voucher is created and is added to the invoice record. To view an invoice voucher, follow these steps:

  1. Using the Search and Filter pane, find the invoice you want to view and select it.
  2. In the Vendor invoice number pane, scroll down to the Voucher information section. Key information about the invoice payment voucher is displayed in this section.
  3. To view all voucher information on a full screen window, click View voucher.

Voucher information

  • Status. The status of the invoice voucher: Awaiting Payment or Paid.
  • Voucher number. System-assigned number for this voucher.
  • Voucher date. Date the invoice was approved and the voucher was created.
  • Total. Total amount of all voucher lines.
  • Exchange rate. Currency exchange rate used to generate the transaction.
  • Disbursement number. The identifier from an external system corresponding to a payment.
  • Account number. The number of the vendor organization account for the payment method indicated on the invoice. This value is only populated if the organization record for the vendor contains an account number in the Accounts section for the payment method being used for this invoice.
  • Accounting code. Vendor accounting code to identify the vendor organization in an external accounts payable system.
  • Enclosure needed. If true and payment method is “Check,” this indicates to an external accounting system that an enclosure is needed with this invoice,If the Export to accounting checkbox is set to true and a voucher is created for this invoice, the export voucher file will contain a value of true for
  • Vendor. Vendor name.
  • Address 1. Vendor address 1.
  • Address 2. Vendor address 2.
  • City. Vendor city.
  • State/Prov./Region. Vendor State, Province, or Region code.
  • Zip code. Vendor zip code.
  • Country. Vendor country.

Voucher lines

The voucher lines are grouped by fund external account number. For example, if there are multiple invoice lines on an invoice that contain the same fund external account number, only one voucher line will be generated containing the total amount across those invoice lines.

  • External account number. The fund’s external account number.
  • Total. The total amount for all voucher lines, displayed at the bottom of the voucher line table.

The Voucher lines table contains this information for each voucher line:

  • Line number.
  • Group.
  • Fund code.
  • External account number.
  • Amount.

Paying an invoice

Use the Pay action to update the invoice to the status of Paid. The Pay action is available in the Action menu if the Settings > Invoices > Approvals > Approve and pay in one click setting is turned off. This enables a library to use separate actions to approve invoices and pay invoices. If that setting is off, the invoice must be approved before the Pay action is available. Moving the invoice to paid status triggers an update of the order status to Closed if the order is fully received. See Settings > Invoices > Approvals for more information about the Approve and pay in one click setting.

To pay an invoice, follow these steps:

  1. Using the Search and Filter pane, find the invoice you want to pay and select it.
  2. In the Action menu, select Pay.

Viewing voucher export details and downloading the export file

The process to generate a batch file containing vouchers for export to an external accounts payable system is managed in Invoice > Settings > Batch group configuration. Only vouchers for invoices with the Export to accounting checkbox turned on with an invoice status of “Approved” that have not been extracted in a prior job run will be included in the export. After the export job completes, you can view details about the export and view a copy of the full voucher export file by finding an invoice that was included in the export job. To view voucher export details and download a copy of the full file to your local download folder, follow these steps:

  1. Using the Search and Filter pane, find the invoice you want to view and select it.
  2. In the Vendor invoice number pane, scroll down to the Voucher export details section.
  3. To download the full voucher export file, click the downward arrow download icon next to the Batch file name. This file will contain all vouchers that were in a Paid status that had not yet been exported at the time of job execution.

Voucher export details

  • Batch group.
  • Batch file name.
  • Batch file status.

Voucher export file

The voucher export file contains the following data elements:

  • accountingCode
  • amount
  • batchedVoucherLines/0/amount
  • batchedVoucherLines/0/fundCodes/0
  • batchedVoucherLines/0/externalAccountNumber
  • enclosureNeeded
  • exchangeRate
  • folioInvoiceNo
  • invoiceCurrency
  • status
  • systemCurrency
  • type
  • vendorInvoiceNo
  • vendorName
  • voucherDate
  • voucherNumber
  • vendorAddress/addressLine1
  • vendorAddress/addressLine2
  • vendorAddress/city
  • vendorAddress/stateRegion
  • vendorAddress/zipCode
  • vendorAddress/country

Edit a voucher to add disbursement information

To add information about the invoice voucher disbursement from an external accounts payable system, use the Action menu to edit the invoice voucher.

  1. Using the Search and Filter pane, find the invoice for which you want to update disbursement information and select it.
  2. In the Voucher information section, click the View voucher button.
  3. From the View voucher full-screen window, open the Action menu and select Edit.
  4. Enter the disbursement information in the fields described below.
  5. Click Save and close.

The only fields that are editable on the voucher are:

  • Disbursement number. Enter an identifier from an external system corresponding to a payment, such as a check number.
  • Disbursement date. Enter the date of the disbursement transaction in the external system.
  • Disbursement amount. Enter the amount of the disbursement, with or without decimal.
Last modified August 2, 2021: Update Invoices (4c1e814)