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Invoicing Module User Guide

User guide for working with invoices, quotes, and orders. The Invoicing module is a comprehensive solution for managing the entire sales cycle - from quote creation through order processing to invoicing and payment tracking. It supports both sales and purchasing processes.

Purpose and Scope

This documentation covers the complete lifecycle of financial documents:

  • Sales cycle - quotes, orders, invoices, payments
  • Purchasing cycle - purchase orders, received invoices
  • Special documents - advance invoices, credit notes, recurring invoices
  • Payment processes - payment tracking, matching, reminders

Who is this guide for

This guide is intended for sales representatives, invoice clerks, accountants, and financial managers who work with financial documents. For module configuration, see Invoicing Administration.

Key Concepts

Invoicing System Architecture

flowchart TD
    subgraph Sales["Sales Cycle (Order to Cash)"]
        Q[Quote] --> SO[Sales Order]
        SO --> I[Invoice]
        Q --> ZF[Advance Invoice]
        ZF --> I
        I --> P[Payment]
        I --> D[Credit Note]
    end

    subgraph Purchase["Purchasing Cycle (Procure to Pay)"]
        PO[Purchase Order] --> PI[Received Invoice]
        PI --> OP[Outgoing Payment]
    end

    subgraph Integration["Integration"]
        SO --> DL[Delivery Note]
        DL --> GI[Goods Issue]
        PO --> RDL[Received DN]
        RDL --> GR[Goods Receipt]
    end

Document Types

Document Prefix Purpose Accounting Impact
Quote QU Price offer to customer None
Sales Order SO Confirmed order Commitment
Invoice INV Tax document Receivable + VAT
Advance Invoice ADV Proforma invoice Advance
Credit Note CN Corrective document Reduced receivable
Document Prefix Purpose Accounting Impact
Purchase Order PO Order to supplier Commitment
Received Invoice RI Invoice from supplier Payable + VAT
Document Purpose Frequency
Recurring Invoice Automatic billing Monthly/Quarterly/Yearly

Invoice Lifecycle

stateDiagram-v2
    [*] --> Draft: Creation
    Draft --> Issued: Issue
    Issued --> Sent: Send
    Sent --> Confirmed: Confirm
    Confirmed --> PartiallyPaid: Partial payment
    Confirmed --> Paid: Full payment
    PartiallyPaid --> Paid: Remaining payment
    Paid --> Overpaid: Overpayment

    Draft --> Canceled: Cancel
    Issued --> Canceled: Cancel

    Draft: Draft
    Issued: Issued
    Sent: Sent
    Confirmed: Confirmed
    PartiallyPaid: Partially Paid
    Paid: Paid
    Overpaid: Overpaid
    Canceled: Canceled
Status Description Available Actions
Draft Work in progress document Edit, issue, cancel
Issued Ready for sending Send, print, cancel
Sent Delivered to customer Confirm receipt
Confirmed Customer confirmed Awaiting payment
Partially Paid Part paid Record additional payment
Paid Fully paid Closed
Overpaid Excess payment on document Refund/transfer
Canceled Voided View only

Prerequisites

System Requirements

Before starting work with invoicing, verify:

  • [x] You have been granted document access rights
  • [x] Document number sequences are configured
  • [x] Tax class (VAT) is set up
  • [x] Customers and suppliers are created
  • [x] Invoice print template is prepared

Check company information settings for printing:

  • Company name, Registration ID, Tax ID
  • Registered address
  • Bank account details
  • Company logo
Document Format Example
Invoice INV-YYYY-NNNN INV-2024-0001
Quote QU-YYYY-NNNN QU-2024-0001
Sales Order SO-YYYY-NNNN SO-2024-0001
Purchase Order PO-YYYY-NNNN PO-2024-0001

Integration with Other Modules

Sales Module

flowchart LR
    O[Opportunity] -->|conversion| Q[Quote]
    A[Account] -->|customer| Q
    A -->|customer| SO[Sales Order]
    A -->|customer| I[Invoice]
  • Opportunities - quotes originate from sales opportunities
  • Organizations - customers and suppliers
  • Contacts - billing contacts

Product Module

flowchart LR
    P[Product] -->|item| QI[Quote Item]
    P -->|item| SOI[Order Item]
    P -->|item| II[Invoice Item]
    PS[Price Strategy] -->|price| QI
    TC[Tax Class] -->|VAT| II
  • Products - items on documents
  • Prices - automatic retrieval from price list
  • VAT - calculation based on tax class

Warehouse Module

flowchart LR
    SO[Sales Order] -->|delivery note| DN[Issued DN]
    DN -->|issue| GI[Goods Issue]
    PO[Purchase Order] -->|delivery note| RDN[Received DN]
    RDN -->|receipt| GR[Goods Receipt]
  • Delivery notes - connection to goods issue/receipt
  • Reservations - automatic goods reservation

Project Module

flowchart LR
    PR[Project] -->|invoicing| I[Invoice]
    I -->|revenues| PRV[Project Revenues]
    PR -->|costs| PI[Received Invoice]
  • Project invoices - billing to projects
  • Costs - project cost tracking

User Roles and Permissions

Role Permissions Typical Tasks
Sales Rep Quotes, orders Creating quotes
Invoice Clerk All sales documents Invoicing, payments
Accountant Everything including purchases Complete records
Financial Manager Read + reports Control, analysis
Purchaser Purchase documents Supplier orders

Workflows

Sales Cycle (Order to Cash)

flowchart TD
    A[Opportunity/Request] --> B[Create Quote]
    B --> C[Send Quote]
    C --> D{Approved?}
    D -->|No| E[Modify/New Quote]
    E --> C
    D -->|Yes| F[Convert to Order]
    F --> G{Advance?}
    G -->|Yes| H[Advance Invoice]
    H --> I[Advance Payment]
    I --> J[Delivery]
    G -->|No| J
    J --> K[Invoice]
    K --> L{Deduct Advance?}
    L -->|Yes| M[Advance Deduction on Invoice]
    L -->|No| N[Standard Invoice]
    M --> O[Send Invoice]
    N --> O
    O --> P[Record Payment]

Purchasing Cycle (Procure to Pay)

flowchart TD
    A[Purchase Need] --> B[Create Purchase Order]
    B --> C[Send to Supplier]
    C --> D[Receive Goods]
    D --> E[Received Delivery Note]
    E --> F[Received Invoice]
    F --> G[Invoice Verification]
    G --> H{Correct?}
    H -->|No| I[Dispute]
    H -->|Yes| J[Approve for Payment]
    J --> K[Payment]

Invoice Issuance Workflow

sequenceDiagram
    participant U as User
    participant S as System
    participant C as Customer
    participant B as Bank

    U->>S: Create invoice
    S->>S: Calculate VAT
    S->>S: Generate number
    U->>S: Issue
    S->>C: Send by email
    C->>S: Confirm receipt
    C->>B: Payment
    B->>S: Payment matching
    S->>U: Payment notification

Key Features

Automatic VAT Calculation

The system automatically calculates VAT based on settings:

Mode Description Calculation
Prices excl. VAT Standard B2B Base + VAT
Prices incl. VAT B2C, retail Price including VAT
Reverse charge Transferred liability VAT = 0, note
Exempt Export, specific services VAT = 0

Advance Payment Deduction

flowchart LR
    ZF[Advance Invoice $1,000] --> P[Payment $1,000]
    P --> VDD[Issued Tax Document]
    VDD --> F[Final Invoice $5,000]
    F -->|deduction| OF[Advance Deduction -$1,000]
    OF --> K[Amount Due $4,000]

Bulk Operations

Operation Description Availability
Bulk Invoicing Invoice multiple orders Order list
Bulk Printing Print multiple invoices Invoice list
Bulk Email Send multiple invoices Invoice list
Accounting Export ISDOC, XML Administration

Automatic Notifications

Event Action Recipient
New Order Email Assigned user
Due Date Approaching Reminder Customer
Overdue Reminder Customer + internal
Payment Received Confirmation Customer

Handling Common Situations

Correcting an Issued Invoice

How to correct an issued invoice?

flowchart TD
    A[Invoice Error] --> B{Already sent?}
    B -->|No| C[Direct correction]
    B -->|Yes| D{Error type}
    D -->|Amount| E[Credit Note]
    D -->|Details| F[Corrective Tax Document]
    E --> G[New correct invoice]
    F --> G

Unpaid Invoice

Procedure for unpaid invoice

  1. Due date - automatic reminder
  2. 7 days overdue - 1st reminder
  3. 14 days overdue - 2nd reminder with interest
  4. 30 days overdue - handover for collection
  5. If necessary - credit note and write-off

Supplier Invoice Dispute

flowchart TD
    A[Invoice Discrepancy] --> B[Contact Supplier]
    B --> C{Resolution}
    C -->|Correction| D[Corrective Document]
    C -->|Credit| E[Credit Note from Supplier]
    C -->|Rejection| F[Return Invoice]
    D --> G[Update in System]
    E --> G

Section Contents

Detailed guides for individual features can be found in these chapters:

Chapter Description
Quotes Creating price quotes
Sales Orders Processing sales orders
Invoices Issuing tax documents
Advance Invoices Proforma invoices and advances
Credit Notes Corrective tax documents
Purchase Documents Orders and invoices from suppliers
Recurring Invoices Automatic billing
Document Items Working with line items
Payments Tracking and matching payments
Discounts Setting up discounts and promotions
Tips and Tricks Best practices

Additional Resources

Need help?

For accounting and tax questions, consult your accountant or tax advisor. For technical support, contact the helpdesk.