About Order Invoicing and Credit Memos

This topic describes order invoicing and credit memos.

Before invoices are printed from the Order Invoicing form, the selected orders are searched. For each order with line/release quantities that have been shipped but not fully invoiced, the system performs these tasks:

Computes the invoice amounts
Updates the customer sales and invoicing fields
Calculates a commission due amount
Posts the invoice to invoice history
Creates Accounts Receivable invoice transactions
Prints the invoice

You can process either invoices or credit memos, but not both at one time. If an error occurs during posting or printing, the process stops and the invoice in error is not generated. However, invoices posted prior to the error remain posted.

For regular and blanket invoices, the prepaid amount, miscellaneous charges, sales tax, and freight from the order header are zeroed out.

Using the Credit Memo option, you can generate credit memos for orders that were entered. Credit memos are issued to reflect a credit to a customer, and a return of items. Credit memo processing is very similar to invoicing processing.

For a credit memo, if an Apply To Invoice number was entered on the sales order, a line is printed on the first page of the credit memo, similar to this: Credit Memo XXX for Invoice YYY.

When you issue a credit and returning items, you must first enter a material transaction to post the quantity returned through a ship transaction. The ship transaction adjusts all the inventory quantity fields to reflect the return, but you still need to print the credit memo form to adjust the domestic currency sales and customer balances.

Advanced Terms

If you use advanced terms, the Advanced Term Algorithm calculates the due date bucket for purchase orders and sales orders.

Foreign Currency

Foreign currency customers owe the foreign currency amount. Any change in the exchange rate results in a gain or loss. Overpayments or underpayments by foreign currency customers results in a debit or credit balance in their accounts. If the overpayment or underpayment is for the purpose of making up a gain or loss that was caused by a change in the exchange rate, a separate adjustment must be posted.

Although you can print invoices in either the foreign or domestic currency for customs or other purposes, accounting allows for the customer to owe only the foreign currency amount, regardless of the currency in which the invoice was printed.

Printing Invoices from Packing Slips

You can create invoices from packing slips. On the Customers form Codes tab, select Print Packing Slip on Invoice. Then select Create from Packing Slip.

Reprinting Invoices

Using the Reprint Options group box, reprint invoices from invoice history for a range of invoices and dates. Reprinting uses the display options currently specified, not those that were used when the invoice was originally printed.

The Use Preprinted Forms parameter on the Accounts Receivable Parameters form affects how invoices and credit memos are printed and determines whether you can reprint invoices.

Note: If you use preprinted numbers on forms, you cannot reprint invoices because a second invoice number would be on the preprinted form and would not match the original invoice number. You must void and regenerate the invoice to reprint it.

This primary information comes from invoice history:

Line item number
Quantity shipped
Price
Discount
Freight
Sales tax
Customer number

This secondary information comes from the sales order, which must still be available in the database:

Order text
Line item text
Standard text
Customer address
Customer item number
On-order quantity
Serial number