Inputting AP Invoices is relatively easy. This article focuses on how to create Invoices and include the Date(s) of Service if there's an Accrual for an Invoice. To create a new AP Invoice, hover over 'Vendor' on the top ribbon and click 'Invoice'. A new window will open with the name 'Unsaved AP Invoice'.


If the AP Invoice has a 'Document Issues' tab listed, click here to learn how to resolve Document Issues.



AP Invoice Header



1) Location - The location and legal entity should default from User settings. The User's default location will automatically appear each time a new Invoice is created for a faster input time, but this field can also be changed if needed. When updated, the Location in the Details grid below will also update to the new Location. Click here to change the default Location via User Preferences

2) Vendor - The name of the Vendor from which the invoice was received. Once selected, the Vendor address will be noted below 'AP Invoice' in the top ribbon and any necessary 1099 information from the Vendor record will be listed below the Comment box. This provides necessary information at a quick glance

  • Note: Depending on the Vendor Entry method (set on the Vendor record), the details grid will be set to 'Account' or 'Item'

3) Invoice Number - This is the Vendor's invoice number. If no number is available, create a new one

  • Note: If you are entering a large invoice, like a food invoice from your supplier, you may want to use the ‘AP Invoice Import Function’. This functionality allows the User to import a pre-defined template with your suppliers invoice details. Click on this link to access the Importing An AP Transaction tutorial

4) Document Date - The date listed on the invoice

5) GL Date - The date the invoice posts to the General Ledger

  • Note: When this date is different than the Document Date, an orange exclamation pointwill appear, bringing attention to the fact that there is a difference between the two dates

6) Document Amount - Enter the total original amount of the invoice before any discounts. Although this is not mandatory, the placement of this field allows for a quick entry along with the required fields

7) Payment Terms - These are used to specify the Terms in which a payment should be received. Changing the 'Payment Terms' is optional, but if the Vendor is setup correctly, this value will already be populated

8) Due Date - This is the date by which the payment is due. This field will auto-populate to today's date, but can easily be changed by typing in a new date or clicking the calendar icon and selecting a different date

9) Credit Expected - Any amount shorted on a given delivery. A highlighted 'Unassigned Amount' will pop up below the 'Amount' box and refers to the amount remaining to be assigned to a cost category. Refer to the Credit Expected article for more information about how to use the 'Credit Expected' field on the AP Invoice form

10) Comment - This optional field is useful for adding additional notes about a Credit Expected as well as other information to the AP Invoice, as demonstrated in the image below. Comments appear in the 'All Transactions' and 'AP Transactions' lists and can be used for sorting and filtering purposes


11) 1099 Amount - This amount equals the Document Amount field until it is manually changed. If an invoice is duplicated and the 1099 amount is not equal to the document amount, the 1099 amount does not automatically update. If the 1099 Amount does not equal the Document Amount, an orange exclamation pointwill appear, bringing attention to the fact that there is a difference between the two amounts. A document cannot be Saved or Approved if the 1099 Amount is greater than the Document Amount or the 1099 Amount is less than $0

  • Note: This box only appears when the Vendor is a 1099 Vendor, as noted on its Vendor record

12) 1099 Box - This field will auto-populate with the type of Payment made by this Vendor, as noted on its Vendor record

  •  Note: This box only appears when the Vendor is a 1099 Vendor

13) Priority - The Priority Status assigned to this invoice, which can assist in identifying and prioritizing the payments on a check run that should be processed first so that cash flow is maximized. If the Vendor is marked as a certain priority, this field will automatically update when the Vendor is assigned. However, this field can be updated after the Vendor is selected to once of the following values:

  • Critical
  • High
  • Standard
  • Low

14) Mark as Paid - This toggle allows the User to automatically create an AP Payment. This can be toggled either before or after the payment is Approved, as long as there is an amount remaining on the invoice. If clicked, a field will appear that has the user select a bank account

  • Note: If the fiscal period is closed for either the Legal Entity of the Location listed on the header or the Legal Entity assigned to the bank account, a prompt will appear displaying that the transaction cannot be saved

15) Link to Asset - This toggle will link the Invoice details to specific Assets

16) Franchising - This option allows Franchisors to record and pay AP Invoices on behalf of their Franchisees. The expense can then be passed on and billed to the Franchisee. Refer to the AP Invoice: Franchising article for more information about entering Invoices on behalf of your Franchisees

17) Payment Hold - This toggle puts the invoice on hold so that it cannot be paid. As soon as the Amount Remaining is greater than zero, this toggle will be active. Click here to learn more about Payment Holds

  • Note: When the Amount Remaining is equal to zero, the toggle will automatically be turned off and cannot be updated



AP Invoice Details


Invoice details can be entered in two different ways: Entry by Account or Entry by Item. Both ways are detailed out below.



Entry by Account (Cost Categories)



1) Account - The cost category. The system will search for all categories that include the letters typed in

2) Amount - The amount for this category

3) Comment - This is an optional field where a User can type in any brief comments associated with this line item

4) Location - The Location and Legal Entity receiving the order. This will auto-populate to reflect the Location listed on the header, but if the listed Location is changed, this field will display the updated Location. Multiple Locations can be selected from this field, enabling the amount entered to be equally distributed across all Locations

  • Note: The multi-select option is only available for Entry by Account. The Locations in the selector will be limited to those that have access to the selected GL Account

5) Start Date of Service - The date that the range of service begins. This is optional and often used for bills that extend over the end of the month / period (i.e. a utility bill dated 5/10/2019 with Dates of Service from 4/10/2019 to 5/9/2019). This is explained further in the section below

  • Note: If legacy data was entered before the replacement of the Accrual Tab, older AP Invoices will automatically save their Dates of Service under the Details Tab

6) End Date of Service - The date that the range of service ends. This is optional and often used for bills that extend over the end of the month / period (i.e. a utility bill dated 5/10/2019 with Dates of Service from 4/10/2019 to 5/9/2019). This is explained further in the section below

  • Note: If legacy data was entered before the replacement of the Accrual Tab, older AP Invoices will automatically save their Dates of Service under the Details Tab

7) Add / Clear Button - This will either add or clear the information from the line. If added, the line will appear in the grid


Continue to add cost categories until the Unassigned Amount from the header is balanced. When finished, select the 'Save & New' button to enter another invoice or 'Save & Close' to exit the screen.

  • Note: As a helpful hint, ask your vendors to summarize their invoices at the bottom by category. They are often very willing to do this and it will speed up data entry for you



Entry by Item



1) Item - An item from the Invoice. The system will search for all items that include the letters you typed in

  • Note: AP Entry Users can select 'Missing Item' from this selector if the item is not set up in R365. Once saved, a 'Missing Items' tab will appear where a higher level Accounting User can review and assign the Missing Item in R365. Click here to for more information about Missing Items

2) Vendor Item - This field will be pre-populated based on the setup information for this item

3) U of M - This field will be pre-populated based on the setup information for this item

4) Quantity - The quantity of the item

5) Each Amount - This field will be pre-populated based on the set-up information for this item

6) Total - The generated amount from the quantity entered (Quantity x Each Amount)

7) Account - This field will be pre-populated based on the setup information for this item

8) Location - The Location and Legal Entity that is receiving the order. This will auto-populate to reflect the Location listed on the header, but if the listed Location is changed, this field will display the updated Location

9) Start Date of Service - The date that the range of service begins. This is optional and often used for bills that extend over the end of the month / period (i.e. a utility bill dated 5/10/2019 with Dates of Service from 4/10/2019 to 5/9/2019). This is explained further in the section below

  • Note: If legacy data was entered before the replacement of the Accrual Tab, older AP Invoices will automatically save their Dates of Service under the Details Tab

10) End Date of Service - The date that the range of service ends. This is optional and often used for bills that extend over the end of the month / period (i.e. a utility bill dated 5/10/2019 with Dates of Service from 4/10/2019 to 5/9/2019). This is explained further in the section below

  • Note: If legacy data was entered before the replacement of the Accrual Tab, older AP Invoices will automatically save their Dates of Service under the Details Tab

11) Add / Clear Button - This will either add or clear the information from the line. If added, the line will appear in the grid


Continue to add items until the Unassigned Amount from the header is balanced. When finished, select the 'Save & New' button to enter another invoice or 'Save & Close' to exit the screen.



Edit Approved AP Invoices



Approved AP Invoices can be edited easily without the hassle of Unapproving a transaction first. To do so, Users will need the Secondary Role of 'Unapprove AP' along with their Primary Security Role.

  • Note: Speak with your Manager about adjusting your Security Roles if you need this function.


Upon opening an Approved AP Invoice, an 'Edit' button will appear above the Details grid. Click it and then update any necessary details. When finished, click the 'Edit Complete' button to save the changes made.



Dates of Service



Dates of Service allow a User to record expenses in the right period even though the Dates of Service may expand over multiple months. To activate this feature, hover over 'Administration' in the top ribbon and click 'Preferences'.



When the 'System Preferences' window opens, navigate to the 'Miscellaneous' tab, and at the bottom right-hand corner of the header, click 'Display Accrual During AP Entry'. This will enable the Dates of Service appear on the AP Credit Memo form. 



Dates that are added into an AP Invoice can be viewed in the 'Transaction Details' list with two postings made to their GL Accounts and their Start Date and End Dates posted in their respective date columns. These transactions can be exported and used to calculate a User's accrual.