Sales Invoices

Finalize the sale and record your revenue.

Interface Overview

Business Overview

A Sales Invoice is the legal document that records earned revenue. It confirms that goods have been sold or services rendered, and it establishes the customer's legal debt to your organization.

Workflow Integration

Invoices are the final step in the sales workflow:

• Estimate → Invoice: Direct conversion for faster sales
• Estimate → Sales Order → Invoice: Traditional workflow with confirmation step
• Revenue Recognition: Only posted invoices affect accounting and inventory
• Payment Collection: Invoices generate accounts receivable that are settled through payments

Actions

Creating an Invoice

Method 1: From Sales Order

1. Create a new Invoice
2. Use the "Load from Sales Order" dropdown selector with embedded search
3. Select from accepted sales orders only
4. All order data (customer, items, pricing, terms) loads automatically
5. Modify as needed and save
6. Order conversion count is incremented
7. Effect: Revenue is recorded, Inventory is reduced, and Accounts Receivable is increased

Method 2: From Estimate

1. Open the Estimate detail view
2. Click "Convert to Invoice" button
3. The system creates a new invoice with all estimate data
4. Effect: Direct revenue recording and inventory reduction

Method 3: Direct Sale

1. Go to Sales > Invoices and click Add Invoice.
2. Customer: Select the client.
3. Items: Finalize quantities and any applicable taxes (VAT/GST).
4. Branch: Select the location from which stock is being reduced.
5. Click Save & Post.
6. Effect: Revenue is recorded, Inventory is reduced, and Accounts Receivable is increased

Viewing & Sharing

|- Click an Invoice to see the Accounting Journal entries at the bottom. |- Click Print to generate the official invoice document. |- Parent Reference: Invoices show their source sales order in detail view

Invoice Detail View

Comprehensive invoice details with line items, payments, and accounting entries.

Overview Section

The invoice detail view provides complete information about the invoice:

|- Header: Invoice number, date, customer details, and status (Draft, Posted, Paid, Overdue) |- Parent Document: Shows source sales order if converted from order |- Line Items: Full list of items with quantities, unit prices, discounts, and taxes |- Totals: Subtotal, tax amounts, discounts, shipping, and final total |- Payment Status: Shows amount paid, balance due, and payment history

Payments Tab

The Payments tab tracks all payments recorded against this invoice:

|- Payment History: List of all payments with dates, amounts, and payment methods |- Payment Details: Reference numbers, bank accounts, and payment notes |- Apply Payment: Button to record new payments directly from the invoice view |- Credit Notes: Shows any credit notes applied to this invoice

Journal Entries Tab

The Journal Entries tab displays the accounting impact:

|- Debit Entries: Accounts debited (typically Accounts Receivable) |- Credit Entries: Accounts credited (Sales Revenue, Tax Accounts) |- Date & Reference: Transaction date and journal entry reference |- Branch Context: Shows which branch the transaction was recorded in

Updating an Invoice

1. Drafts: Click Edit to modify any details before posting.
2. Posted Invoices: To maintain audit integrity, posted invoices cannot be edited. You must use Void and Clone.

Voiding an Invoice

1. Open a posted Invoice.
2. Click Void.
3. Enter the reason.
4. Effect: The revenue entry is reversed, and the items are restored to your inventory.

Cloning for Correction

If a mistake was found on a posted Invoice:

1. Void the original Invoice.
2. Click Clone.
3. A new draft appears with the exact same items.
4. Fix the error and Post the new invoice.

Recording Payments

Recording a Payment Against an Invoice

1. Open the invoice and click Record Payment.
2. Payment Date: Select when the payment was received.
3. Payment Method: Choose how the customer paid (Cash, Bank Transfer, Card, Mobile Money, etc.).
4. Payment Account: Select the bank or cash account where the funds will be deposited.
5. Payment Amount: Enter the amount received.

Payment Types

|- Full Payment: Paying the exact amount due. The invoice status changes to "Paid" and the balance becomes zero. |- Partial Payment: Paying less than the amount due. The invoice status changes to "Partially Paid" and a balance remains. You can record additional payments later until fully settled. |- Over Payment: Paying more than the amount due. The excess amount is recorded as a credit balance for the customer, which can be applied to future invoices or refunded.

Payment Effects

|- Accounting: Debits the selected payment account (Bank/Cash) and credits Accounts Receivable. |- Invoice Status: Updates based on payment type (Paid, Partially Paid, or Overpaid). |- Customer Balance: Reduces the customer's outstanding balance accordingly. |- Receipt: A payment receipt is generated that can be printed or emailed to the customer.

Workflow Relationships

Parent Document Tracking

Invoices maintain relationships with their source documents:

• Sales Order → Invoice: Orders can generate multiple invoices
• Estimate → Invoice: Direct conversion bypasses order stage
• Conversion Counting: System tracks how many invoices created from each parent
• Visual Indicators: Parent document badges shown in invoice detail view

Status Workflow

Estimate (accepted) → Sales Order (accepted) → Invoice (posted) → Payment

or

Estimate (accepted) → Invoice (posted) → Payment

[!IMPORTANT] Balance Tracking: An invoice remains "Unpaid" until a payment is recorded against it. You can manage outstanding balances and record manual payments in the Receivables module.