What is the use and implication of Supplier Site level (Self Billing) pay on "Receipt", “Use” and “Receipt and Use”?
Payment on Receipt enables you to automatically create standard, unapproved invoices for payment of goods based on receipt transactions.
Invoices are created using a combination of receipt and purchase order information, eliminating duplicate manual data entry and ensuring accurate and timely data processing.
Payment on Receipt Autoinvoice Program is also known as Evaluated Receipt Settlement (ERS) and Self Billing.
You can automatically create invoices with multiple items and distribution lines, and include tax.
You define which supplier sites participate in Payment on Receipt and enforce matching rules to ensure the proper payments are made to the suppliers.
Three options are available for this feature :
1. Receipt: Receipt is used for material that is not consigned. If you want to use the Pay on Receipt AutoInvoice Program to automatically create invoices based on receipts you enter for this supplier site, enter receipt.
2. Use: For consigned POs, if the invoice needs to be created automatically, then either Use or Receipt and Use should be used. The supplier site must be a purchasing site. Receipt is used for material that is not consigned. Use is employed for consigned material. An accounts payable invoice is created after consumption advice records are generated at Inventory Level.
3. Receipt and Use: Receipt and Use is for material that can be either consigned or non-consigned material.