Sales Invoices

There a number of sources of data for sales invoices. The system will "queue" these activities so that they are not forgotten.

Sales invoices can be created for:

• product shipments (sales order dispatches)
• direct sales
• periodic invoicing from agreements
• service work orders
• generally for miscellaneous invoice lines (not linked to any other process)

Invoices can be created either individually or in bulk. Bulk creation of invoices will create multiple invoices based on all sources of invoicing.

If an invoice relates to a sales order and a shipment, it can (and should) be created from shipment information so that invoice lines are allocated (matched) to shipments. Similarly, for direct sales and periodic invoices the invoice rows should be created by the system so they are linked to the original event. Thus rows can be selected (rather than entered) in bulk from shipment data and the system will automatically fill in pricing and other information from the associated sales orders. Multiple orders and shipments for the same customer can be combined in the same invoice.

An invoice can include lines based on periodic invoice lines - these are lines which are not connected to any shipment but are based on a periodic service such as a rent invoice as set up in the Agreements feature. They can be retrieved to a new invoice when the period is valid, in a similar way to retrieving shipment details.

Miscellaneous invoices, and miscellaneous lines on allocated invoices, can also be entered. These lines are not related to either a shipment or a periodic item.

After a sales invoice has been entered, it is activated. Activation checks the invoice for consistency and completeness and allocates the sequential invoice number. After activation, the invoice will normally be printed and sent, or sent by email as a PDF attachment to the customer. The invoice data will normally be transferred to a connected accountancy system. This is a batch transfer managed fromt the Bookkeeping connection dashboard.

Note that the invoice should only be sent to the customer after activation.

Sales invoices can also be created from sales dispatch process if the user has rights for this. This would normally be done only if the invoice is being put in the box with a shipped product.

Creating a new invoice

Press the New invoice button either on the Invoicing home menu, the sales invoice dashboard selector or on an existing sales invoice.

Normally select the company first. Selecting the invoice company from the popup will list those customers that are due an invoice for one of the reasons mentioned above.

Note the selector called "Companies to be invoiced". If you wish to create a "miscellaneous" invoice i.e. one that is not connected to any previous process, the customer will not necessarily be listed here until you change this drop down list to "No".

When a partner has been entered and the form saved, the system will automatically retrieve the default values of the customer to the header tab. If default values are set correctly and completely it can be possible to activate the invoice without going to the header tab and editing any data.

Open a list of companies to be invoiced by pressing the action button.

The data related to the invoice header can be seen on the header section and on the header tab.

Creating and editing an invoice line

Single invoice lines can be created either from the lines tab or the line details tab.

Important: if the invoice is to be based on a shipment, direct sales event or periodic invoicing, do not write the lines individually but use the Add lines button as described later in this section.

To delete a line select the line by entering a check mark to the box on the left and then press the [Delete] button on the invoice line.

Add lines will open a popup from which you can select lines from one of the sources mentioned above.

The list can be filtered in various ways, but normally all lines can be selected.

Note that you can add lines from multiple orders to one invoice unless "Allow combined invoicing" is unchecked on the Partner card - Sales tab.

If a line is not checked as "possible" it means that the currency of the order is different from the currency of the invoice. If the customer has had orders in for instance two currencies, then two invoices will be needed. To fix this, cancel the selection and go to the invoice header and change the currency of the invoice to match that of the order.

Note that on this form, the item ID is not a required field. If an item id is not entered, then the comment field (Description in invoice) is required to have data. The comment text will also be shown on the line details tab.

Data for an invoice line:

If invoice lines have been retrieved, then the lines are complete if the default data is completely specified in the Partner card and for the item in the Item card.

Invoice lines from a sales dispatch or direct sales

Note that it is possible to change details of lines added from a dispatch, and still have the link in place. For example the price will be set from the sales order but it can be changed. A line from a sales order dispatch can be added only to a single invoice line. It cannot be split between two invoice lines. If this is required the second line must be added as a miscellaneous line.

When an invoice line is allocated to a dispatch, the status of the dispatch will become ‘Complete’. Before this, the dispatch status is ‘Invoice queue’, and it is still waiting to be invoiced. Allocating invoice lines to dispatches allows you to ensure that all dispatches are invoiced.

When the lines are allocated to dispatches, the shipping costs which have been entered at the time of the dispatch will appear automatically as a new line on the first invoice that concerns the dispatch.

The invoice lines page. The first line is allocated to a sales order dispatch. The second line has appeared automatically and is based on dispatch data.

If you invoice goods from one dispatch in several invoices, the shipping costs will appear on the first one.

Invoice lines based on a periodic invoicing

If periodic invoices have been created under an agreement, then these lines are retrieved to an invoice in the same way as a sales order shipment as described above. They will only appear in the list when the time period for that invoice line is valid and it has not been previously included in an invoice. The text of the invoice line will be set to the period covered by the periodic invoice.

Invoice lines from service work orders

Invoice lines can be added from completed service work orders. Lines are only added if the invoice quantity on the service work order is not zero (regardless of the used quantity).

Miscellaneous invoice lines

There are two ways to add unallocated lines to a sales invoice. This means an invoice line without an item id

1. Enter the new line to the Lines tab.
2. Enter the new line on the Line details tab.

In both cases the lines created are blank. Create lines like this only when they are not to be allocated to specific shipments, direct sales or periodic items. Before activating an invoice line without an item id, check that there is text in the Description in invoice field. Each line needs either an item id or free text in the description. (Both are also acceptable.)

Credit invoices and negative line values

To make a credit invoice, check the credit invoice box in the top section. Note: do not make line values or quantities negative.

It is however possible to add a negative value line providing the whole invoice has a positive sum. This is done by setting the Credit box on the line details. For instance this can be done for a rounding row or a final discount row.

Bookkeeping tab

The bookkeeping tab shows the account bookings of the invoice and is useful to evaluate tax codes and accounts, particularly if an error regarding these issues is received when the invoice is activated.

The Bookkeeping tab on the summary page will only be shown if the system is set up with the ‘Enforce bookkeeping’ option on. This option is set by your service provider. If this option is on then the invoice pages will also show relevant bookkeeping accounts and will require them to be valid when the invoice is activated. The sums on bookkeeping accounts are always in the home currency, regardless of the invoice currency.

The value of the invoice is debited to the accounts receivable account and credited to the sales and VAT payable accounts. For a credit invoice the bookings are reversed.

Activating a sales invoice

When the creation of an invoice is complete, it must be activated. Activation does the following:

• The invoice data is checked for consistency and completeness
• The specified accounts must be valid for the customer and for the VAT areas and rates specified.
• The sum of the line values must be greater than zero, even for a credit invoice

If activation fails, an error message will indicate what the problem is. This issue must be corrected and then the activation tried again.

Changing a sales invoice that has been activated

Invoice activation can be cancelled so that an invoice can be modified again. This is done by making a new version of the invoice. The invoice status will be returned to ‘Under construction’. After changes have been made, the invoice should then be reactivated. A new version of an invoice cannot be made if it has already been transferred to an external financial system. In this case changes should be made by issuing a credit invoice and then creating a new invoice.

To modify the invoice, press New version. Now you can modify the sales invoice. Make the necessary changes and activate the invoice again.

Copying an invoice

It is possible to copy an existing invoice. Pressing this button will create a new "Under construction" invoice for the same company with the same lines.

Note however that linkages to shipments, direct sales or to periodic invoices are not copied. All lines in the new invoice will be of type "miscellaneous" i.e. not connected to other activities in the system.

Do not create an invoice for a shipment by copying an existing invoice even if the line items are the same. Create the invoice by pressing the new button and then retrieving proper data with the "Add lines" button.

Deleting an invoice

An invoice can only be deleted if it has never been activated. (Otherwise the invoice numbering sequence will be incomplete.) Press the delete button on the header to do this.

If the invoice has already been sent to the customer it is recommended to create and send a credit invoice to the customer for the appropriate amount.

If an invoice has been once activated and then returned to Under construction status, it is not possible to delete it.

Sales invoice status

A sales invoice can have the following statuses:

If the internal ledger is in use, then additionally invoices can have the following statuses: