A Vendor Invoice is an official request for payment by a Vendor that is providing materials and/or services for a job. When a Vendor Invoice is received, it is important to document and approve it for payment.
The Invoices tab in the Vendors section lets users see all Invoices on record for all Projects in the application for that specific Vendor. The list displays the associated Project number, the application-specific Order number, Invoice number, status, etc. Green Invoices are uncommitted, blue Invoices committed, and black Invoices executed. Under this tab you may view the Vendor's Invoices in a list or individually.
When an Invoice is committed or executed, a snapshot is automatically taken that is viewable by clicking the "View" button for that Invoice.
1. Enter a Vendor Invoice
Vendor Invoices should be entered into RedTeam Flex as soon as they are received. The sooner they are entered, the sooner they are routed for approval. Once the Invoice has been entered into the application and routed, it will appear in the Inbox of the first person to approve. You can always check the hierarchy of approvers for a particular Project by going to the Project Team and looking for the yellow "A" icon next to the name of the user, then hovering over the icon to see their approval authority.
Ideally, Invoices are entered against Open Commitments that are located in the Buyout tab of a Project. It is recommended that you do not start receiving and approving invoices unless you have an executed Commitment (contract) with the Vendor. However, if you have permission to do so, you can enter an Invoice that is not associated with any Open Commitment.
Additionally, Vendor Invoices may be entered from several places, such as the "Create" icon on the top menu bar, the Vendors menu > Invoices tab, and Manage Vendor Invoices within a Project. Vendor Invoices can also be created from the Commitment tab within the Vendors menu. This method can be used to create a Vendor Invoice for each Vendor Commitment that is in Committed or Executed status and for Open Projects.
Steps:
From the Buyout tab of a Project, locate the commitment for which you have received an Invoice
Click the tool icon and select "Create Vendor Invoice"
Step 1, enter the information as it is displayed on the Vendor's Invoice and upload a digital copy of the Invoice as an Attachment
Click on Step 6. Confirmation
From the Confirmation Step, click "Route for Approval"
6. If your company does not utilize the Routing feature, or if you are a user who enters AND approves Invoices, please see wiki: Approve a Vendor Invoice
2. Approve a Vendor Invoice
Once an Invoice has been entered into RedTeam Flex they can be approved by one or more users who have the authority and permissions to approve Invoices. These Invoices can be approved from the Inbox, directly within a Project, or from the Vendors menu (Invoices tab). If your company utilizes the electronic routing of Invoices, it is most likely that you will approve from your Inbox.
Steps:
Review the information for the Invoice that was recorded by the user who entered the Invoice into RedTeam
2. Click "Next"
3. job cost the Invoice by distributing the amount on the line item(s) from the Vendor's Commitment in the Current column
4. In the Job Cost step, individual line items can be Accepted and Disputed by using the thumbs-up and thumbs-down buttons
5. (tip) To View the digital copy of the Vendor Invoice, the Vendor's Commitment, this Disbursement Authorization, or the Audit report, click "View"
6. Once you have entered the amount, click "Calculate"
7. At the bottom, review the Amount Authorized and adjust Retainage if necessary by clicking the "Adjust" checkbox
8. Retainage can be adjusted by percentage or as a dollar amount by toggling between the two.
7. Once you have verified your Amount Authorized is correct, click "Commit"
8. Verify the status of all required credentials
9. Click "Next Step"
10. Review the status of Lien Waivers from all Claimants involved with this Vendor's Commitment
11. Click "Next Step"
12. Rate the Vendor's performance, enter any notes in the Approval History feed (optional), then Approve or Reject the Invoice below
13. Click "Next Step"
14. Review the confirmation information and click "Close" to close the window or "View Disbursement" to review the Invoice details
3. Execute a Vendor Invoice
The last step to finalizing an Invoice from a Vendor before issuing the payment is to Execute the Invoice. Executing is typically done by the last user in the approval workflow, often a member of your Accounting team. This user is responsible for reviewing and confirming all the necessary items are in place before making the payment, including the job cost, credentials, lien waivers, and all approvals. Once everything is in place and all necessary approvals have been made, the user can Execute the Invoice.
Once Executed, the Invoice is ready for payment.
Steps:
Review 1. Vendor Invoice, 2. Job Cost, 3. Verify Credentials and 4. Lien Waivers. Verify that all necessary items and documents are in place on the invoice.
On 5. Approval review and verify that all necessary approvals have been made
Rate the Vendor's performance and enter any notes in the Approval History feed (optional)
Indicate if this is a Partial or Final Payment in the dropdown
Indicate if you require a Conditional, Unconditional, or no Waiver from the dropdown
Enter a Pay on date, if necessary
Click the checkbox to "Execute this Disbursement Authorization upon Approval"
Click "Approve"
4. How to Release Retainage (Vendor Invoice)
As Invoices are approved in RedTeam Flex for partial or full payments, you will eventually want to release Retainage being held for a particular Vendor. Retainage is calculated by percentage, so releasing Retainage in RedTeam Flex is as simple as reducing the Retainage percentage to zero. Follow the instructions below to enter a Vendor Invoice to release Retainage.
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Steps:
1. Go to Step 2 of the Invoice
2. f you are only releasing Retainage, you will not enter any progress in the Current column, then click "Calculate"
3. Click marked "Adjust"
4. You will have the option to adjust the total retainage for all invoices to date, or only the current invoice
5. Reduce the Retainage percentage to "0" to release all Retainage and move it to the Amount Authorized at the bottom
6. Click "Modify"
7. Click "Commit"
8. Proceed with the routing workflow and approval process normally
5. How do I have more than one draft vendor invoice for a commitment?
When working with invoices for a vendor's buyout commitment, RedTeam Flex can be configured to allow multiple simultaneous draft vendor invoices simultaneously, or only one at a time. If your Accounts Payable workflow is frequently interacting with multiple invoices from vendors, it may be very helpful to enable this feature.
Multiple draft invoices are controlled by the configuration for their related Buyout Commitment. If you have administrator permissions, you can edit a Commitment in the Configuration Menu.
Steps:
Click on the Configuration Menu on the left
Click Commitment Forms within the Projects section of the Configurations
3. Find the Commitment Form you want to edit and click the toolbox icon to its left, then click Edit
4. Look for the "Progress Metric" section and click the "Allow multiple Draft Invoices" checkbox
6. Vendor Invoice Discount Details (For Sage 100 & 300 Users)
Users with Sage 300 CRE and Sage 100 Contractor integrations will have an optional discount amount and date fields for all of their vendor invoices. These fields can be left unchanged if you do not want to record a discount amount. If a non-zero discount amount is entered, Sageâs transaction rules dictate that you must enter an accompanying date as well.
If a discount amount and date is entered on Step 1 of the invoice, the non-discount amount would be used in Step 2. After the invoice is executed, the invoice will be sent through to Sage. The invoice will go into Sage with the full price of the vendor invoice listed and the discount amount represented by the discount data field. When the linked and discounted invoice is paid, the payment will reflect in RedTeam as a full payment for the invoice.
Steps:
When creating an invoice, in Step 1, enter both the discount dollar value and the discount date.
On Step 2 for Job Cost, enter the undiscounted amount for the invoiced products & services.
Proceed as normal for invoice entry and workflow.
When the invoice is executed, it will be sent from RedTeam to Sage 100/300 as normal.
The discount fields will be fulfilled on the invoice in Sage, based on entry in RedTeam.
7. TeamPlayer Invoice Retainage Warning
For TeamPlayer invoices a check is done on retainage when the invoice is committed. If the current retainage differs from the commitment then a warning message will appear. At that point a user can select âYesâ to accept the current retainage and commit the invoice or âNoâ to reopen the invoice and edit the retainage.
Steps:
Vendor invoice is submitted via TeamPlayer.
User "Commits" invoice in Step 2 of "Edit Invoice" or selecting the "Tools" button and clicking "Commit"
Warning message may appear letting user know if current retainage and retainage listed on commitment do not match. User can click "Yes" or "No"
8. Mass Upload Vendor Invoices from Spreadsheet
Multiple vendor invoices can be uploaded at once by using the "Import Vendor Invoices from a Spreadsheet" feature. By filling out the import spreadsheet and completing the upload, multiple invoices across projects can be entered at one time. Once the invoices are uploaded they will appear in draft status and automatically routed for approval.
To be able to use the "Import Vendors from a Spreadsheet" feature, users must have the AddDisbursementAuth permission assigned to their role.
Columns Breakdown on "Vendor Invoices Template"
Commitment Number: Enter the Vendor Commitment number if this Invoice is being applied to an active commitment. Vendor Commitment must be active in Committed or Executed status.
Vendor Name: Required if a vendor commitment does not exist. Enter the vendor's name that is submitting the invoice. The vendor's profile must already exist in your database.
Invoice Type: Required if a vendor commitment does not exist. Enter "SI", "MI", "LI", "EI", or "OI" in this column to specify the invoice type. SI = Subcontract Invoice MI = Material Invoice LI = Labor Invoice EI = Equipment Invoice OI = Other Invoice
Project Number: Required field to assign the invoice to the correct project. If uploading multiple invoices to different projects, enter each project number here. Projects must be in Request, Proposal, or In Progress status.
Scope Number: Required only if a vendor commitment does not exist. Enter Two Digits, eg "00" for Original or "01" for Scope Change 01.
Cost Code: Required if a vendor commitment does not exist for the invoice. The cost code must exist and be active.
Cost Category: Required only if a vendor commitment does not exist for the invoice. Enter the Cost Category Name or Code. Eg. M, S, etc.
Invoice Number: Required field for all invoices.
Invoice Amount: Required field for all invoices. Enter the total amount that is being invoiced.
Invoice Date: Required field for all invoices. Date that the invoice was submitted.
Due Date: Required field for all invoices. Date that the invoice is due to be completed.
Period Ending: Can be used to specify the period that the invoice will fall in for reporting purposes.
Tax Venue: Required for vendor commitments that have tax applied. If any taxes are to be applied to the invoice. The tax venue must exist and match exactly what is in Configuration.
Payment Terms: Required if vendor commitment does not exist. Terms and conditions that stipulate an amount of time in which payment is due for goods or services that is agreed upon by both parties.
Description: Required for all invoices. Description of what is being invoiced. Character limit 1000.
URL Attachment: Enter the URL from the Shared Drive Attachments must be PDF or image file. URL must be valid and file has to be public and shared. Current cload storage services supported are Dropbox and Google Drive.
Instructions: Any instructions that pertain to the vendor invoice. Character limit 5000.
Require Lien Waiver (Y/N): Required only if a vendor commitment does not exist. Enter "Y" or "N" according to whether the vendor must provide Waivers for the vendor invoice. Y = Yes (Waiver Required) N = No (Waiver Not Required)
âSteps:
There are two sections in RedTeam to begin the Import Vendor Invoices from Spreadsheet process.
Option 1:
Click on âCompaniesâ from the left side menu.
From the submenu select âVendorsâ
Click on the tab âInvoicesâ.
Click the â+â button and select âImport Vendor Invoices from a Spreadsheetâ from the window that appears.
The âVendor Invoices Templateâ can be downloaded by clicking on the link that appears in the âImport from Spreadsheetâ dialogue box.
The filled out âVendor Invoices Templateâ can either be Dragged and Dropped or searched for and selected by clicking on the âADD FILEâ button.
Once the file has been selected, it will be scanned for any errors or issues. If any are found, a spreadsheet will be automatically downloaded with the errors highlighted.
If no files are found then an upload complete message will appear to advise the user of the process being completed successfully.
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Option 2:
Select âProjectsâ from the left side menu.
Access a project.
Click on the âBuyoutâ tab.
Click the â+â button and select âImport Vendor Invoices from a Spreadsheetâ from the window that appears.
The âVendor Invoices Templateâ can be downloaded by clicking on the link that appears in the âImport from Spreadsheetâ dialogue box.
The filled out âVendor Invoices Templateâ can either be Dragged and Dropped or searched for and selected by clicking on the âADD FILEâ button.
Once the file has been selected, it will be scanned for any errors or issues. If any are found, a spreadsheet will be automatically downloaded with the errors highlighted.
If no files are found then an upload complete message will appear to advise the user of the process being completed successfully.
9. Using Direct Sales Tax Remittance (Sage 300)
Direct Sales Tax Remittance is a tax option available for clients with the Sage 300 integration. After the tax venue is created then the amount of remittance can be entered on each invoice, as needed. Tax remittance is when a portion of the payment is passed on to the appropriate tax authority.
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Note: For the Direct Sales Tax to used on an invoice:
The tax venue must be set up in Configuration as a Direct Sales Tax venue.
The Buyout Commitment that the invoice is created from must have the Direct Sales Tax venue selected when it is created or the Direct Sales Tax venue is selected when creating a standalone invoice.
Please contact us if you would like the direct tax remittance feature enabled in your database.
Steps:
Create or edit an invoice.
On Step 2 for Job Cost, after clicking the calculate button, you can enter the amount to be remitted or you can leave the amount that is autogenerated based on the percentage defined by the tax venue. Select the checkbox to remit the amount entered.
Proceed as normal for invoice entry and workflow.
When the invoice is executed, it will be sent from RedTeam Flex to Sage 300 with the tax remitted.