Create sales invoices

Sales invoices make demands for payment from customers for goods or services. They increase the balance of the customer’s subaccount in Accounts receivable and, therefore, are used when selling on credit. They do not record receipt of money, which must be handled by a second transaction, even if the customer pays immediately. In a double-entry accounting system like Manager, they also post income to appropriate revenue accounts and convert inventory costs from assets to expenses.

Enable the Sales Invoices tab

Before a sales invoice can be created, you must enable the Sales Invoices tab. Click Customize below the left navigation pane, check the box for Sales Invoices, and click Update below the list:

Manager offers four methods for creating sales invoices:

  • Standard method
  • Cloning
  • From the Customers tab
  • Copying with the Copy to feature

Standard method

In the Sales Invoices tab, click on New Sales Invoice:

Complete the form:

  • By default, Issue date is prepopulated with today’s date.
  • An optional Due date can be entered, either as a calendar date or as a number of days after the issue date. If a Due date is not entered, Manager will automatically use the Issue date as the Due date.
  • Reference is optional and may be used for internal or external sequences. If the box within the field is checked, Manager will number the transaction automatically. The program will search for the highest number among all existing sales invoices and add 1.
  • The Quote number is optional, but can be used if a sales quote preceded the sales invoice. If the sales invoice is created by copying another form with a sales quote reference, that number will carry over automatically. This number links the sales invoice to the sales quote so quote status can be tracked. Once a customer has been selected, another field appears with a dropdown list of that customer’s quotes.
  • The Order number field can be used to enter a customer’s purchase order number or an internal sales order reference number. Completion of this field is optional. If the sales invoice is created by copying another form with a sales order reference, that number will automatically populate this field. Once a customer has been selected, another field appears with a dropdown list of that customer’s sales orders. Linking the sales invoice to a sales order helps track sales order status.
  • A previously defined Customer must be selected in the dropdown box.
  • The customer’s Billing address is filled automatically, but may be edited.
  • A summary Description of the overall invoice can be entered, if desired.
  • Line items can be completed semi-automatically by selecting a predefined inventory or non-inventory Item and entering quantities. Or, they may be entered manually. Additional lines can be added 1, 5, 10, or 20 at a time.
  • An applicable Tax Code can be selected for each line item.
  • If divisions have been created, the Division field appears any time an account is selected to which a division might apply.

    Note
    Prices and amounts will be in the currency designated for the customer. Conversions of sales prices defined for inventory items are not converted automatically.

  • If inventory locations have been defined and the Delivery Notes tab is not enabled, a field for Inventory location appears below the last line item when the first inventory item is added to the sales invoice:


    Inventory items sold are then assumed to be immediately removed from the designated inventory location. However, if Delivery Notes is enabled, the field does not appear, and removal of inventory items from inventory locations occurs via the delivery note. (This behavior is also dependent on tracking selections for inventory items themselves.)

Near the bottom of the screen are checkboxes for various options. Availability of some options depends on which tabs and features are enabled. Additional fields appear when some options are checked:

  • Line decription adds a Description field to each line item. Line descriptions are optional.
  • If Discount is checked, further options appear for Percentage or Exact amount discounts. This selection governs the entire invoice, but discounts must be entered line item by line item.
  • Another option lets you indicate Amounts are tax inclusive. If this box is checked, tax amounts are deducted from the unit price; otherwise they are added to the invoiced amount.
  • Options for Rounding are available.
  • Withholding of tax can also be selected by checking the box to Deduct withholding tax and entering the Rate or Amount. This option is used only when your customers are required by law to withhold and pay tax at the source on your behalf.
  • An Early payment discount can be offered. Percentage or Exact amount discounts can be offered. The payment deadline is adjustable.
  • Late payment fees can be selected. These will initially be applied monthly on the same date of the following month as the issue date. If the following month is shorter than the current month, the late payment fee will be added on the last day of the following month, if necessary to keep it within the month. Subsequent late payment fees will then be shifted to the same date of succeeding months.
  • The Total amount in words can be shown near the bottom of the invoice. (This feature is only available if the language preference is English.)
  • If the customer is denominated in a foreign currency, you can check the box to show the Total amount in [base currency]. This amount is also shown near the bottom of the completed form.
  • The due date can be suppressed on the completed invoice by checking the box to Hide due date. This would normally only be done if your practice is not to set due dates, and you want to suppress the automatic one. (The due date is not deleted, because Manager needs it for various functions. But it is not displayed on the sales invoice for the customer to see.)
  • A Custom title can be entered, such as when local regulations require a sales invoice to be titled as a tax invoice.
  • A Custom theme can be indicated.

Click Create to generate the finished sales invoice.

Example
The following sales invoice uses many of the features described:


Cloning

For repeat sales, an existing sales invoice can be duplicated by cloning. It will be identical to the source invoice, including the issue date. Only the reference number will be different if automatic sequencing is set under Form Defaults.

While viewing the existing sales invoice, click Clone, edit as required, and click Create:

From the Customers tab

If the Billable Time or Billable Expenses tabs are being used, sales invoices can be created from the Customers tab:

Drill down by clicking the blue balance in the Uninvoiced column for a customer:

Select any uninvoiced billable time or billable expenses to be invoiced and click New Sales Invoice:

A sales invoice is created, which can be edited or added to. See this Guide for more information.

Copying

To create a sales invoice from any sales- or purchase-related transaction, click the Copy to button while viewing the source transaction and select New Sales Invoice from the menu:

Examples
If the customer was given a sales quote before goods or services were ordered, a sales invoice can be created directly from the sales quote without re-entering information. Necessary information is carried forward, including the quote number. Anything can be edited as needed.

If a sales order was created in response to a customer’s purchase order, a sales invoice can be created directly from it.

Sometimes, goods are delivered before a sales invoice is created, often because exact quantities are not know until delivery. In that case, a delivery note can be copied to a sales invoice.

If goods or services being invoiced to a customer were purchased from a supplier, and the supplier’s sales invoice was entered into Manager as a purchase invoice, a sales invoice can be created directly from the purchase invoice.

Of course, if a customer wishes to purchase the same thing as previously purchased, the older sales invoice can be copied to a new one, which will have the current issue date.

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