Approving invoices

Approving invoices allows FYI Admin users and users in a user group with Approve Invoices permissions to review and approve invoices directly within FYI. For example, a junior user can create an invoice and set it to "Pending Approval". A manager or partner can then review and approve it.

Once approved, the invoice is queued for synchronisation to Xero Ledger, and its filing status in FYI is updated to Filed. The invoice status in Xero depends on the Xero Approval State configured in Invoice Settings.

The invoice can then be completed and sent to the client from Xero, where payments can be received.

Approving an invoice

From the Invoices list or Documents list

Invoices can be approved from the Documents list or the Invoices tab in the Client workspace. 

Where an invoice includes interim time entries and the associated job has subsequently been Archived, Completed, or Cancelled, the job must be reactivated before the invoice can be approved.

1. Open the Details section in the Drawer to review the invoice.
   
2. Edit the invoice if required.
    
3. When ready, click Approve to approve the invoice.
   

Once the invoice is approved, certain details are updated in FYI, and the invoice is synchronised to Xero. Refer to the Invoice details updated after approval and Synchronising with Xero Ledger sections below.

Using Workflow approval

To approve invoices using Workflow, the user must have the Approval Level set to "Approval" in their user profile.

The following example shows a user creating an invoice and sending it to another user for approval. The approver reviews and approves the invoice.

1. In the Drawer, set the Workflow Status to "Pending Approval" and select the Approver. The user creating the invoice is set as the Owner. 
   
   This can be changed if required by selecting a different user, for example, the manager or partner.
   
2. The invoice is displayed in the Approver's Home - My Approvals Workspace.
   
3. The invoice can be displayed and reviewed by opening the Details section in the Drawer.
   
4. Edit the invoice if required.
5. If required, add comments or tasks to the invoice using the Drawer, for example, to notify another user that approval has been requested or completed. 
6. When ready, select Approve from the Drawer. You can also approve invoices without opening the Drawer by selecting Approved from the toolbar.
   
7. Once the invoice is approved, certain details are updated in FYI and the invoice is synchronised to Xero. Refer to the Invoice details updated after approval and Synchronising with Xero Ledger sections below.

Invoice details updated after approval

When an invoice is approved in FYI, it is queued for synchronisation to Xero Ledger, and the following details are updated:

Synchronising with Xero Ledger

When an invoice is approved in FYI, it is queued immediately for batch synchronisation to Xero Ledger. Batches are processed every 2 minutes, and synchronisation may take up to 15 minutes to complete. Refer to Xero Ledger invoice and credit note synchronisation.

Invoice number and editing

Once the invoice has synchronised with Xero Ledger, the Invoice Number assigned by Xero is added to the Invoice Number field in the Details section of the Drawer. The field remains blank until the invoice has synchronised.

Depending on the invoice type and status, the invoice may be unlocked and edited in FYI after synchronisation. Progress and Final invoices with a status of Draft in Xero, Submitted, or Awaiting Payment can be unlocked by an FYI Admin or a user with Create Invoices permissions. Changes made in FYI are then synchronised to Xero.

Approved Interim invoices and invoices containing both WIP and interim amounts cannot be unlocked in FYI. Refer to Opening and editing invoices for the applicable restrictions and instructions.

If required, the invoice can also be deleted in FYI, subject to the applicable invoice status and permissions.

Invoice email and sending

The email address used for the invoice in Xero will be either the email address on the Client - Summary tab or a custom email address, depending on the Invoice Email Address option selected in Invoice Settings.

The invoice can be sent directly from Xero or by using an Automation Process created in FYI.

Invoice theme and layout

The appearance of the invoice in Xero depends on the Theme and Layout selected when the invoice was created.

The Theme determines the invoice template used in the practice's Xero Ledger. If a Theme isn't selected when creating the invoice, the first theme defined in the Xero Ledger Invoice Settings is used.

Sales tax rate applied in Xero

When an invoice is approved in FYI and synchronised to Xero Ledger, FYI determines the sales tax applied to each invoice line in Xero in the following order:

1. Xero contact default sales tax: If the client's contact in the relevant Xero Ledger has a default sales tax configured, FYI applies this tax rate to the invoice lines.
2. Job template: If the Xero contact doesn't have a default sales tax, FYI uses the Xero default tax rate configured for the Chart of Accounts account selected in the job template in FYI.

Disbursements retain the tax rate selected when configuring the disbursement rate in FYI, regardless of the contact's default sales tax. Where necessary, FYI places disbursements on separate invoice lines to preserve their tax rates.

If a new contact is created in Xero when an invoice synchronises, FYI adds an Alert event to Practice Activity. The event identifies the new contact and reminds users to review and update the contact's default sales tax rate in Xero if required.

Requesting changes

If changes are needed before an invoice is approved, the approver can add comments or a task to the invoice, then set the Workflow Status to "Changes Requested".

1. Open the invoice in the Drawer.
2. Add any Comments or a Task if required.
3. Set the Workflow Status to "Changes Requested".
4. FYI automatically creates a comment and pre-fills the message to indicate that changes have been requested. The comment includes the name of the user requesting changes and the name of the Owner to whom the comment will be sent.
5. Add any additional information to the comment text if required, then click Comment to send it.

When the Workflow Status is set to "Changes Requested", the invoice is no longer included in My Approvals.