This document explains how to manage advance invoice to reduce the risk of having obsolete items.
To use advance invoicing means that you request the customer to pay in advance for an item he has ordered. You can request the customer to pay the entire sum or only part of the sum in advance. Advance invoices are used when a customer orders an item outside the stock assortment.
An advance invoice can be created automatically or manually one or several times before a customer order is delivered. Default values are set per order type.
The customer has paid the advance invoice. This means that the amount on the final invoice has been reconciled with the amount paid in advance. The final invoice can be monitored in 'Customer Order Invoice. Display' (OIS350).
The payments processed affect your customer credit and risk management as well as your cash flow management.
When an advance invoice proposal is created in 'Customer Order. Invoice in advance' (OIS105), it receives status 20. The status is then raised to 70 after processing the advance invoice in 'CO Invoice. Print' (OIS180) or after interactive invoicing.
These files are updated:
These files are updated after cash payment:
For handling other payments, see Processing Customer Payments.
In 'Customer Order Type. Open' (OIS010/E)
1 - (Printout picking list/create delivery order)
2 - (Delivery reporting. Picking list is printed immediately)
In 'Customer Order Type. Update Field Selection' (OIS104/N), set the default values per order type for these fields:
In 'Advance invoice for ECI' in Customer. Open (CRS610/F), set the parameter to one of these alternatives:
1 - (An advance invoice is created automatically if a customer order line is linked to a reference order)
2 - (An advance invoice is created automatically if a customer order line is linked to a reference order and if the item is an extended catalog item or a noncoded item).
Create advance invoice proposal
Create an order in 'Customer Order. Open (OIS100). Check that the values for the created proposal are correct in 'Customer order. Invoice in advance' (OIS105/B).
Enter default values in 'Customer Order Type. Update field selection' (OIS014/N).
Select the order number for the advance invoice in 'Customer Order. Open' (OIS100) or in 'Customer Order. Open Toolbox' (OIS 300).
Enter the amount to be invoiced in advance and check that the values which are set as default are correct in 'Customer Order. Invoice in advance' (OIS105/B).
Print advance invoice
Select option 14=Interactive invoicing in 'Customer order. Invoice in advance' (OIS105/B). The invoice is printed on paper or sent via electronic media.
Print a selection of advance invoices manually in 'Customer Order invoice. Print' (OIS180). The program prints all advance invoices belonging to the specified advance invoices dates and the final invoice is automatically reconciled against the total amount invoiced in advance.
Register payment - cash desk or account receivable
If a customer wants to pay an invoice in cash, you initiate the cash payment in 'Cash Payment. Open' (OIS215) by entering the following information: cash desk, payer, currency, payment method, invoice number(s) and payment amount in foreign currency.
Cash payments for invoices are carried out if a customer wants to pay the invoice immediately after customer order and invoicing or at a common cash desk.
If there are other payment methods to be used (manual bank transfer, draft or check), you enter the received amount together with the relevant payment values in 'Payment Received. Record' (ARS110). The payment is then ready to be allocated to invoice records in the same program.
When the items have been delivered and the final invoicing is performed, the advanced invoiced amount will be deducted from the final invoice. The status in 'Customer Order. Invoice in Advance' (OIS105) is set to 80 = Invoiced and settled.