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Customers Invoices

Introduction

The Customer Invoices module allows for comprehensive management of customer invoices, including the ability to create, update, delete, and list invoices. Each invoice comprises several invoice lines. Additionally, this module enables the creation of payments for invoices and includes features for generating documents for each invoice in formats such as PDF.

Suppliers’ invoices are managed by Module Suppliers Invoices.

The page Invoice configuration explains you how to setup the invoice module.

Create invoice

Currently, SolutionsInc does not offer a complete accounting solution. Therefore, you will need to use a third-party accounting software package of your choice or engage the services of an accountant.

However, SolutionsInc does allow you to create customer invoices for all the customers that you have previously set up. (see Module Third Parties).

You can create an invoice directly from a customer record, from a command with the state labeled “accepted,” or from a service contract. When creating an invoice from a customer record, you have the option to choose from four types of invoices:

  1. Standard Invoice: This is a straightforward invoice without any prerequisites or special conditions.
  2. Replacement Invoice: This type of invoice is used to reissue an invoice that contains errors, provided that no payment has been made on the original invoice. Only one replacement invoice can be created for each original invoice. When you create a replacement invoice (Invoice R), you will select the original invoice (Invoice F) that you want to replace. Once Invoice R is created, no further actions can be taken on Invoice F, regardless of its status. If you delete Replacement Invoice R, Invoice F returns to its original state and continues its lifecycle. If Replacement Invoice R is validated, the status of Invoice F automatically changes to “abandoned,” and the lifecycle continues with Invoice R.
  3. Credit Note: You can issue multiple credit notes for an invoice. A credit note serves as an invoice to correct or reduce the amount of a standard invoice. You have the option to pay back the amount of the credit note, or it can be converted into a discount to lower the total amount owed by the customer.
  4. Invoice Deposit: You can create an unlimited number of invoice deposits. These deposits will then be applied to reduce the balance on other invoices when needed.

These functionalities provide flexibility and control over invoicing, allowing for corrections, adjustments, and managing customer balances effectively.


Procedure

When you create an invoice in draft mode in SolutionsInc, you need to include products or services that have already been defined in the system. Alternatively, you can manually enter the title, VAT rate, and unit price directly on the invoice. For each line item on the invoice, you can specify an amount and apply a relative discount (expressed as a percentage) if needed.

Steps to Handle Invoices

  1. Draft Creation: Begin by creating the invoice in draft mode, adding the required products or services, entering titles, VAT rates, unit prices, amounts, and discounts as necessary.
  2. Confirmation: Once you are satisfied with the invoice details, confirm it. Note that this operation is irreversible meaning once confirmed, you cannot revert back to draft mode.
  3. Posting the Invoice: After confirmation, the invoice is posted, and an invoice number is assigned based on the numbering scheme configured in the Invoices module.

Handling Errors

If any errors are identified after the invoice has been validated:

  • Replacement Invoice: If the error warrants a full redo of the invoice, you will need to issue a replacement invoice.
  • Credit Note: If the error involves adjusting the amount owed to the customer, a credit note may be created.

VAT Calculation

The specifics regarding VAT calculation, including any rounding rules, can be found on the page dedicated to VAT calculation and rounding rules within the documentation.

Revenue Stamp

In some countries, there is a requirement to include a revenue stamp on each invoice produced. If your company’s country requires a revenue stamp, a new field labelled “Revenue stamp” will appear on the invoice screens and documents. The amounts for the revenue stamp and the countries affected are outlined in the dictionary Database table, ensuring compliance with local regulations.

This structure facilitates a clear and organized invoicing process within SolutionsInc, making it easier for users to manage invoices while adhering to applicable tax regulations.

Reduce total amount/remain amount to pay

In SolutionsInc, managing invoice reductions and discounts requires a clear understanding of the distinctions between the two, even though they can sometimes be conflated. Here’s a detailed explanation of each term and how they can be applied to invoices:

Reduction

  • Definition: A reduction refers to a percentage-based decrease on the selling price of specific products or services included in the invoice.
  • Implementation: Reductions are applied on a line-by-line basis while editing the invoice. The reduction percentage can range from 0% to 100%. When a reduction is applied, the term “available” replaces any other discount terminology for clarity.
  • Usage: This approach allows for precise adjustments to individual item prices, making it clear how each item’s price has been affected.

Discount

  • Definition: A discount is a general reduction applied to the total invoice price. Discounts can be established based on the receipt of payment or independently.

Discount Associated with Payment Already Received:

  • Context: When a bill has already received an associated payment, that payment can be converted into future reductions which blur the lines between discounts and reductions.
  • Implementation: The reduction is assigned to the current invoice via the “Rebates” section. This discount is noted at the bottom of the invoice as a reference to the advance payments, adjusting the total invoice amount and thus specifying the new balance due.
  • Presentation: Important to note, this type of discount is not displayed as a line item in the invoice detail; it simply adjusts the total.

Discount Not Associated with Payment Already Received:

  • Context: This type of discount is defined independently of any payment that has been received.
  • Implementation: To set these discounts, navigate to the customer record in the customer tab, where fixed (amount) or relative (percentage) discounts can be established. These might be granted for various reasons, such as commercial gestures or compensation for service failures.
  • Presentation: These discounts show up as negative line items within the invoice detail. This effectively reduces the total invoice amount before accounting for any payments already received. It’s crucial to note that these discounts are not tied to any specific invoice or deposit.

Understanding the specific distinctions between reductions and discounts is essential for effective invoice management in SolutionsInc. Reductions change the price of individual items, while discounts affect the overall total of the invoice and can either relate to previous payments or stand on their own. This structured approach helps maintain clarity and accuracy in financial transactions with customers.

Summary

You’ve summed up the three methods to reduce the price of an invoice quite well. Here’s a clear outline of these options, highlighting how each method functions and its impact on the invoice:

Methods to Reduce the Price of an Invoice

  1. Reduction Percentage on Specific Products/Services:
  • Description: This method involves applying a percentage-based reduction directly to one or more products or services detailed in the invoice.
  • Effect: The reduction decreases the line item prices, resulting in a total invoice amount that is lower than what would typically be expected without the reductions.
  • Key Point: Each reduction is specified per line item, providing clarity on how individual prices have been adjusted.
  1. Overall Customer Discount Not Associated with Any Payment:
  • Description: This option allows for an overall discount granted to a customer that is independent of any previous payments received.
  • Effect: The discount is represented as a negative amount within the invoice detail, directly reducing the total invoice amount.
  • Key Point: Such discounts are linked to the customer record and can be applied across multiple invoices. They serve as a way to incentivize or compensate customers for various reasons, like loyalty or service issues.
  1. Credit Note or Deposit Transformed into Future Reductions:
  • Description: When advance payments have been received, these can be recorded as credit notes or deposits, which can then be applied to future invoices.
  • Effect: This approach reduces the ‘balance payable’ on the current invoice but does not alter the total amount of the invoice itself. Instead, it simply adjusts what the customer still owes after applying the payments or credits.
  • Key Point: It’s crucial to distinguish that this method does not lower the total invoice amount; it only affects the remaining balance.

Using these three methods, you can effectively manage pricing adjustments on invoices in SolutionsInc. Each method serves distinct purposes and impacts the invoice totals and balance due differently, allowing for flexible pricing strategies tailored to various customer situations.

PDF generation, printing

Here’s a concise guide on how to include a bank account number or address for check payments in the PDF invoices generated by your system:

Steps to Include Bank Account Number or Address for Check Payments in Invoices

Activate the Bank/Cash Module:

  • Navigate to the Home Screen.
  • Go to Configuration → Modules.
  • Find and activate the Bank/Cash module.

Create Your Company’s Bank Account:

  • Once the module is activated, create a bank account for your company.
  • Ensure that all necessary information is accurately entered, as this will be displayed on the invoices.

Set Up Customer Invoices Module:

  • Go to Setup → Modules → Customer Invoices.
  • In the Payment Modes section, select the bank account you created in step 2 or the address you wish to use for check payments.
  • Press the Modify button to save your changes.

Regenerate Your Invoice:

  • Now that the configuration is complete, you can regenerate your invoice.
  • Upon regeneration, the PDF will include your bank account number or the specified address for check payments, as per your setup in step 3.

By following these steps, you will successfully integrate your bank account information or check payment address into your invoices, ensuring that your customers have the necessary payment details at hand. This helps streamline the payment process and enhances clarity in your invoicing.

Enter payments

Here’s a brief overview of the payment process for validated invoices and how credit notes can be utilized to reduce the remaining balance:

Payment Process Overview

Validated Invoices:

  • Requirement: Payments can only be initiated on invoices that have been validated. An invoice becomes validated after it has passed through any necessary review or approval processes established by your system.
  • Action: Ensure that the invoice you intend to pay is marked as validated before proceeding with the payment.

Using Credit Notes:

  • Definition: A credit note is a document issued to reduce the amount owed by a customer on their invoice. It functions as a negative invoice, indicating that a certain amount has been credited back to the customer.
  • Application: If you have an available credit note, it can be applied to the total amount due on a validated invoice.
  • Effect: By applying the credit note, the remaining balance to pay will be reduced accordingly, making it easier for customers to settle their accounts.

To facilitate payments, ensure the invoice is validated. If there are credit notes available, utilize them to decrease the outstanding balance effectively. This process helps maintain accurate financial records and streamlines the payment procedure for both the business and the customer.

Close invoice

Here’s a detailed explanation of the states that an invoice can have based on payment status:

Invoice Payment States

Paid:

  • Condition: The invoice is marked as “Paid” when the total sum of payments received is greater than or equal to the amount claimed on the invoice.
  • Implication: Once an invoice reaches this status, no further payments are expected, and the invoice is considered fully settled.

Partially Paid:

  • Condition: An invoice is classified as “Partially Paid” if any payments have been made (greater than 0) but the total payments are strictly less than the amount claimed.
  • Implication: This status indicates that the customer still owes an outstanding balance, and further payment is required to settle the invoice completely.

Abandoned:

  • Condition: The invoice is categorized as “Abandoned” if no payments have been made at all.
  • Implication: An abandoned invoice implies that the customer has not taken any action towards payment. This status can be useful for tracking invoices that need follow-up.

Invoices can be classified into three definitive states: Paid, Partially Paid, and Abandoned. Understanding these states helps businesses manage their accounts receivable efficiently, allowing them to track payments and follow up with customers as necessary.

Export invoice

To export your invoice data using SolutionsInc’s tool, follow these steps:

How to Export Invoices Data

Access the Export Assistant:

  • Navigate to the menu bar at the top of your SolutionsInc interface.
  • Click on Tools.
  • Select New export from the dropdown menu. This will open the Export Assistant.

Select Export Parameters:

  • In the Export Assistant, you’ll be prompted to set specific parameters for your export.
  • Choose the data type you want to export (in this case, select Invoices).
  • You may have the option to filter the invoices based on various criteria such as date range, status (Paid, Partially paid, Abandoned), or other relevant parameters.

Format Your Export:

  • Choose the desired file format for your exported data (common formats include CSV, Excel, PDF, etc.).
  • Ensure that the selected format meets your requirements for data analysis or reporting.

Review and Confirm:

  • Double-check your selections in the Export Assistant.
  • Confirm that you have selected the correct criteria and format.

Export the Data:

  • After confirming all settings, initiate the export process by clicking on the Export or Generate button.
  • The tool may take a moment to gather the data based on the selected parameters.

Download Your Exported File:

  • Once the export is complete, you will be prompted to download the file.
  • Save it to your preferred location on your device for further use.

Using the Export Assistant in SolutionsInc is a straightforward process. By following these steps, you can easily export your invoice data for analysis, reporting, or record-keeping. Be sure to choose the right filters and formats to suit your needs!

See page Module Exports for more information.

Pre-defined invoices

In SolutionsInc, the feature of “pre-defined” invoices allows users to efficiently generate new invoices based on existing data. This functionality is particularly beneficial for organizations that deal with recurring billing or contractual obligations. Here’s a comprehensive overview of how this works and some considerations regarding its implementation:

Overview of Pre-defined Invoices

Definition:

  • A pre-defined invoice is an invoice template containing data (like customer information, item descriptions, pricing, etc.) that can be reused to create new invoices. This feature streamlines the invoicing process.

Benefits:

  • Time Savings: By reusing existing data, users can quickly generate new invoices without starting from scratch.
  • Consistency: Ensures that recurring invoices maintain consistency in format and data entries, minimizing errors.

Application with Contracts:

  • Pre-defined invoices can be particularly useful for contracts that involve regular payments. For example, if a contract specifies monthly payments for a set period, a pre-defined invoice can incorporate all necessary information related to that contract.
  • This feature is especially advantageous for services or products with predictable billing cycles.

Implementation Considerations

Billing Period:

  • While pre-defined invoices are designed to cover the recurring elements of a contract, it’s important to modify them so that the billing periods (the time frame for which services are billed) correspond to specific months rather than covering the entire length of the contract.
  • This means that for each new invoice generated from a pre-defined template, the billing period should be adjusted to reflect the appropriate month of service.

Customization:

  • Users should have the ability to customize each pre-defined invoice as needed. This includes the ability to modify amounts, descriptions, or any relevant terms that may change from month to month.

Review and Verification:

  • Before sending out invoices generated from pre-defined templates, it’s advisable to review the final output. This ensures accuracy concerning the billing month and related contractual terms.

Process for Using Pre-defined Invoices

Create a Pre-defined Invoice:

  • Navigate to the invoicing section of SolutionsInc.
  • Fill out the invoice template with the relevant information that will be reused.
  • Save the invoice as a pre-defined invoice for future use.

Generate New Invoices:

  • When it’s time to bill, select the pre-defined invoice you would like to use.
  • Adjust the billing period to reflect the correct month and make any necessary changes.
  • Save the new invoice and follow the normal process for distribution.

Maintain Documentation:

  • Keep records of all generated invoices and the corresponding pre-defined templates for reference and auditing purposes.

Pre-defined invoices in SolutionsInc significantly enhance the efficiency of the invoicing process, especially in scenarios involving recurring billing contracts. By ensuring that billing periods align correctly with the intended months of service, businesses can maintain clarity and accuracy in their financial transactions.

Use case examples

Here’s a comprehensive breakdown of the use cases (UCIN) you provided for handling deposits, billing, and payments in SolutionsInc. Each use case comprehensively details typical business scenarios, actions taken, and their implications.

Use Cases for Deposits, Billing, and Payments

UCIN01: Reception of a Deposit then Final Invoice

  • Situation: A customer pays a deposit before receiving the final invoice.
  • Actions:
  1. Enter a deposit invoice for the amount received, not the total amount due.
  2. Mark the payment as received.
  3. Convert the deposit invoice into a future reduction.
  4. Create the complete invoice (can be done before or after the deposit).
  5. Add the reduction from the deposit to the final invoice.
  6. This reduces the remaining balance to pay.
  7. Send or resend the complete invoice, indicating that a deposit has been received.

UCIN02: Billing and Payment in Full

  • Situation: A full invoice is created, and full payment is received.
  • Actions:
  1. Record the full payment on the invoice.
  2. The balance goes to £0.
  3. Sort and categorize the invoices marked as paid.

UCIN03: Billing and Higher Payment Received

  • Situation: A customer pays more than what was invoiced.
  • Actions:
  1. Enter the amount received, which exceeds the invoice amount.
  2. Mark the invoice as paid.
  3. Create a record of the overpayment for future reference.

UCIN04: Billing, Full Payment, and Product Return

  • Situation: Full payment is made, but a product return occurs.
  • Actions:
  1. Record full payment against the invoice.
  2. Create a “credit note” invoice to correct the original invoice.
  3. The credit note can be converted into a reduction on the next bill or refunded.

UCIN05: Billing, Full Payment, and Error Detected

  • Situation: Full payment is received, but an error in the invoiced product is detected later.
  • Actions:
  1. Record full payment and close the bill.
  2. Create a “credit note” for the error.
  3. Convert the credit note into a discount.
  4. Create a new invoice reflecting the correct product.
  5. Adjust inventory if necessary.

UCIN06: Billing and Payment for Partial Advance (Discount)

  • Situation: An invoice is issued, and payment is received with a discount for early payment.
  • Actions:
  1. Record the payment received, noting the discount applied.
  2. Mark the invoices as partially paid to reflect the discount.

UCIN07: Billing and Partial Payment with Return or Waiting for Correction

  • Situation: An invoice is created, but only partial payment is received, possibly accompanied by a product return or error.
  • Actions:
  1. Submit a credit on the invoice for the return or missing payment.
  2. Send the credit to the customer.
  3. Convert this credit to a customer discount.
  4. Track the final payments received and include them in the customer’s ledger.

UCIN08: Billing and Partial Payment for Deadbeat

  • Situation: A customer makes partial payment but fails to pay the remaining amount after a significant wait.
  • Actions:
  1. Record the invoice as partially paid.
  2. Note the reason for non-payment as “bad payer.”

UCIN09: Billing with No Payment for Deadbeat

  • Situation: An invoice is created, but the customer makes no payment after an extended period.
  • Actions:
  1. Mark the invoice as “abandoned.”
  2. Document the reason for non-payment as “bad payer.”

These use cases outline a systematic approach to handling deposits, billing, and various scenarios related to payment and invoicing. Each situation includes clear actions to maintain accurate financial records and effectively manage customer accounts. By following these use cases, SolutionsInc can streamline their invoicing process, handle exceptions efficiently, and maintain customer relations effectively.

Solving billing errors

Below is a comprehensive overview of the use cases associated with errors on invoices and client information in SolutionsInc. Each use case describes a specific scenario, detailing the actions taken to correct errors found post-validation and pre- or post-payment.

Use Cases for Invoice and Client Error Management

UCIN00: Error on the Content of an Invoice Detected After Validation

  • Situation: An invoice is created and validated. Later, an error in the content (e.g., amount or description) is identified.
  • Actions:
  1. Mark the invoice as abandoned with a comment (this step could be optional, as it will be handled in the next step).
  2. Create a new invoice by selecting the option for a replacement invoice and choosing the invoice to be replaced.
  3. Ensure that the replacement invoice incorporates the corrected content.

UCIN10a: Error Detected on the Client After Validation but Before Payment

  • Situation: An invoice has been validated, but it was created for the wrong client.
  • Actions:
  1. Mark the invoice as abandoned, selecting “Other” as the reason and noting “before failure on bad customer.”
  2. Create a new invoice for the correct client.
  3. Validate and send the new invoice to the appropriate client.

UCIN10b: Error on the Client (or Invoice Duplicate) Detected After Sending Invoice but Before Payment

  • Situation: An invoice is validated and sent to the client but later found to be for the wrong customer or is a duplicate.
  • Actions:
  1. Create a credit invoice for the exact amount of the sent invoice if it’s not yet paid.
  2. Convert the credit invoice into a discount.
  3. Mark the erroneous invoice as “treated” and prepare it for sending to the customer as a cancellation or correction.
  4. Apply the discount to the original invoice, bringing its balance to zero and marking it as “Paid in Full” (with a payoff of $0).
  5. Create a new invoice for the correct customer, following the same structure as the original.
  6. Validate and send the new invoice.

UCIN10c: Error on the Client Spelling Detected After Payment

  • Situation: An invoice was created for client X, validated, and marked paid. Later, an error in the spelling of the client’s name is detected.
  • Actions:
  1. Create a credit note that reverses all line items on the original invoice.
  2. Convert this credit note into a reduction.
  3. Edit the client record to correct the name from X to Y.
  4. Create a new invoice for the corrected client Y, replicating all line items from the original invoice.
  5. Validate the new invoice and link it to the credit note, ensuring that the balance becomes zero.
  6. Classify the new invoice as paid without requiring additional payment, since the customer has already settled their account for the original invoice.

These use cases offer a structured approach to resolving errors related to invoices and client information within SolutionsInc. By implementing these procedures, the business can efficiently handle discrepancies in invoicing and maintain accurate records for both the company and its clients. This ensures clarity, mitigates confusion, and fosters good customer relationships by promptly addressing errors.

Predefined invoices

Here’s a detailed breakdown of the use cases related to creating and managing predefined (recurring) invoices in SolutionsInc. Each use case explains the situation and the actions that are taken to fulfil the objectives related to invoicing.

Use Cases for Creating and Managing Predefined Invoices

UCRIN01: Creating a Predefined Invoice

  • Situation: The user wants to create a predefined (recurring) invoice.
  • Actions:
  1. Recognize that it is not possible to create a recurring invoice directly.
  2. Create a draft standard invoice initially.
  3. Refer to the next use case for the steps to convert the draft invoice into a predefined invoice.

UCRIN02: Transformation of an Invoice into a Recurring Invoice

  • Situation: The user wants to transform a draft invoice into a recurring invoice.
  • Actions:
  1. Open or create a draft invoice.
  2. Click on the “Convert to Predefined” option.
  3. Enter a title for the recurring invoice (e.g., “Last Updated Quarterly”).
  4. Optionally, add a note that explains the reason for the recurrence of this invoice.
  5. The invoice is now classified as a recurring invoice.
  6. This recurring invoice will only be visible when displaying recurring invoices or if a new invoice is generated.

UCRIN03: Using a Predefined Bill to Create a New Invoice

  • Situation: The user wants to create a new invoice based on a predefined (recurring) invoice.
  • Actions:
  1. Select the option to “Create Invoice.”
  2. Use the selection box at the bottom of the page to choose the desired recurring billing template.
  3. Populate the new invoice with data from the selected recurring invoice template.
  4. Make any necessary minor modifications to the pre-filled invoice details as required.

These use cases outline the process of creating and utilizing predefined (recurring) invoices in SolutionsInc. By following these steps, users can efficiently manage recurring billing, ensuring that invoicing is streamlined and consistent for regular transactions. This structure facilitates better financial planning and can enhance cash flow management by automating the recurring invoicing process.