Invoice Date Entry Impact on Compliant eInvoices
Rules around boundaries of what invoice date range can be applied to compliant eInvoices submitted by suppliers are governed by country specific invoice presentations and tolerance settings. By default in Coupa, supplier can enter any invoice date and submit that invoice into customer's platform. However customers may want to enforce controls on how far in the past these invoices can be backdated or force the date to be the same as when the invoice is submitted since the invoice date is a key attribute that drives payment cycle priorities. For instance you may have negotiated payment terms of 30 days and want to avoid scenarios where you need to process payment well under that timeframe because supplier backdated the invoice. When you consider specific country compliance rules around invoice entry one configuration setting may not be a fit for all so invoice date configurations may differ from one invoice presentation to another. These country specific rules need to be vetted before applying a technical system configuration to appropriate country invoice presentation. This topic around payment terms and impact on invoice date should also be discussed with supplier as part of negotiated agreement so there is clear understanding on each side on what expectations are when sending and processing invoices for payment.
In general, invoicing rules can vary by country in terms of submission requirements. For example in Italy, invoices need to be submitted on the day the shipment has been made (before midnight). An important point in time for each invoice in VAT countries is the tax point date. This is the date a shipment is made or services are finally rendered. Irrelevant to all of this is the payment terms agreement that customer has with their suppliers. Over time customers (Buyers) have asked for these terms to be governed by the time they have physically received the invoice vs suppliers requesting this to be governed by the invoice submission date (or in other words the invoice date they legally need to populate on the invoice). However introduction of eInvoicing has had massive impact on this. In old paper world, invoice date populated by the supplier and reception date on customer side were hugely different. In the electronic world, invoices submitted electronically can be considered received by the Buyer almost in real time. This however puts additional complexity onto this process because many Buyers are now receiving the invoice before goods arrive and require cycle times to process GRs to match against invoice etc. So these days there are Buyers who tell their suppliers that payment terms can only start ticking once the goods have been received. What customers can not change is the legal framework on country level that prescribes when invoices need to be submitted and which dates need to be populated on the invoice. They can however agree with their suppliers their own decision on when the clock starts ticking for payment.
Once you have vetted country specific legal considerations and payment terms agreement with suppliers you can then consider any appropriate configuration settings in your Coupa environment. Please review available options below.
1. Force invoice date to be same as invoice submission date on invoice presentation.
2. Tolerance options to flag any invoices where invoice date is backdated X days from current date.