Approving Invoices

Approving invoices allows FYI Admin users, and users in a user group with Approve Invoice permissions, to review and approve invoices directly within FYI, with synchronisation to the practice’s Xero Ledger.

For example, a junior user can create an invoice and set it to "Pending Approval", then a manager or partner reviews and approves it.

Once approved, the invoice status is updated to Draft in Xero, and from that point the invoice is completed in Xero, where the invoice can be sent to the client and payments received. Refer to Synchronising Contacts, Invoices, and Client Ledger Reports with Xero Ledger.

Approving an invoice

From the Invoices list or Documents list

1. The Approver locates the invoice from the Documents list or Invoices tab in the client Workspace. The invoice can be displayed and reviewed by opening the Details section in the Drawer.
   

    

2. If required, edit the invoice to make changes.
    
3. When ready to approve, click Approved to approve the invoice.
   Note: Where an invoice includes interim time entries and the associated job has subsequently been Archived, Completed or Cancelled, the job will need to be reactivated before the invoice can be approved.

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. This is set by an FYI Admin. Refer to Managing Users.

This workflow example has two users. It shows an invoice created by one user (for example, a junior) and sent for approval (for example, to a manager or partner). 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, and 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. If required, edit the invoice to make changes.
5. When ready to approve, from the Drawer, click Approve to approve the invoice. Invoices can also be approved without opening the Drawer, by clicking Approved in the Toolbar.
   
6. 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.

Note: If needed, Comments or Tasks can be added, for example, to let a user know that the invoice has been approved. Add these using the Drawer. When doing this from My Approvals, add the comment or task before clicking Approved.

Invoice details updated after approval

When an invoice has been approved in FYI, the following details are updated:

• Invoice Status is updated to Draft, Awaiting Approval, or Approved.
  • The Invoice Status is controlled by the Default Status settings in Practice Settings, and also determines the Invoice Status in Xero after sync.
• Workflow Status is updated to Approved, and the Workflow Status field is locked.
  • Users with approval permissions can change the Workflow Status using Bulk Update, if required.
• Editing restriction after synchronisation.
  • The invoice can no longer be edited in FYI after synchronisation with Xero.
• Interim Time Entry (Interim invoices only).
  • This information is relevant to Creating an Interim Invoice only.
  • An Interim Time Entry will be created against the corresponding job, depending on the Job State type.
  • Active Job State - An Interim Time Entry is created.
  • Archived, or Completed Job State - No Interim Time Entry is created.
• Synchronised with Xero - Refer to Synchronising with Xero Ledger.

Synchronising with Xero Ledger

Once the invoice has synchronised with Xero:

• The Invoice Number from Xero is added to the Invoice Number field in the Details section of the Drawer. The Invoice Number field will be blank for invoices that have not yet synchronised.
• The invoice can no longer be edited in FYI. If required, the invoice can be deleted in FYI. If changes need to be made, refer to Requesting changes.
• The email address used for the invoice in Xero will be either the email 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 an automation created in FYI. Refer to Process Step Details - Creating Emails and Documents.
• The way the invoice displays in Xero will depend on the Theme and Layout chosen when the invoice was created:
  • The Theme determines the invoice template used in the practice's Xero Ledger. If no Theme was selected when creating and approving an invoice, the first theme will be used as defined in the Xero Ledger Invoice Settings.
  • The Summary layout displays a single line on the invoice. The following is an example of an invoice with the Summary layout selected:
    
  • The Detailed layout displays each Job Description on a separate line. The following is an example of an invoice that included both WIP and future billed work, with the Detailed layout selected:
    

Requesting changes

If changes are needed, the Approver can optionally add comments or add 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. A comment is created automatically and pre-filled with a message that changes have been requested, including the name of the user requesting changes and the name of the Owner to send the comment to.
5. Add any additional information to the comment text if required, then click Comment to send it.

Note: When setting the Status to "Changes Requested", the invoice is no longer included in My Approvals.