InvoiceNow - Advance Ordering

InvoiceNow - Advance Ordering

Introduction

1. Advanced ordering and order balance are specific functionalities used primarily in e-procurement and supply chain management to automate and manage the full lifecycle of a purchase order. They were enhanced within Singapore's national e-invoicing network, InvoiceNow and it is mainly for B2G procurement processes.
2. It allows participants of the InvoiceNow network to manage the supply chain and e-procurement seamlessly directly from their ERP systems (such as Highnix ERP) and other Accounting Systems.

Advanced Ordering

1. Advanced ordering refers to a system's capability to handle the full, dynamic lifecycle of a customer purchase order (PO) electronically and automatically, beyond just the initial order creation.
2. Key features include:
   1. Initial Order Creation: Structured electronic ordering of goods or services, potentially generated from a digital catalog.
   2. Order Changes (Mainly buyer initiated): The ability for buyers to propose modifications to an order (e.g., quantity adjustments, revised delivery dates, product substitutions). These changes can be accepted or rejected by the selling party.
   3. Order Cancellations: The ability for buying party to cancel an order before it is prepared for delivery, subject to agreed-upon deadlines.
3. Automation Benefits: It allows sellers to automate core steps like order approval, picking, and invoice generation directly from the PO data, and helps buyers automate invoice approval and accounting, which improves efficiency and reduces manual processing.

Order Balance

1. The order balance is a specific electronic document or data element used to provide an up-to-date view of the remaining quantity of an order that has not yet been fulfilled or invoiced.
   1. Purpose: It helps ensure that both the buyer's and seller's records align after partial deliveries or partial invoicing.
   2. Process: After a partial delivery and invoice, the buyer can send an order balance document informing the seller of the remaining quantity expected. This allows for the automation of invoice reconciliation and ensures that the final invoice for an order can be processed without manual intervention.
   3. Outcome: When an order is fully delivered and billed, the order balance will show a remaining quantity of zero, confirming the completion of the transaction for both parties.
2. In essence, advanced ordering manages the workflow of order changes and cancellations, while the order balance provides a real-time status update on fulfillment progress to facilitate seamless, automated invoicing.

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