Inventory Three Stage Invoicing in Evolution
In this post, we look at Three Stage Invoicing. This might seem like unfamiliar territory, however, Evolution has made it simple and easy. By enabling this, it allows you to perform invoicing in stages, by issuing stock first, in cases where customers only want a consolidated invoice at month end or invoicing a customer first, before delivery of goods have taken place. The best thing about this feature is that it makes use of a Delivery Accrual account giving you peace of mind that your Cost of Sales account will balance when the transaction is complete.
Access the Inventory Defaults screen and navigate to the Invoices Tab:
Separate Inventory Issue from Customer Invoice
Check this check box to activate three stage invoicing in the system. This feature will split the processing to issue stock, invoice customer or both simultaneously. When you activate this feature, ensure to activate your Order Entry Defaults options as well.
Inventory Issue Accrual Account
When you activate three stage invoicing, select the inventory issue accrual account from the drop down menu. If you do not have a default accrual account, you will have to create one.
Goods Issue Voucher Numbering
In these frames, you decide whether you will enter Goods Issue Voucher numbers each time you create a new document, or whether the system should generate these numbers automatically. Usually, you would use the automatic system, because it makes it easy to audit – you will have sequential numbers.
Three Stage Invoicing Processing
You access invoices, credit notes, goods received vouchers, and return to suppliers, via the Transactions…Inventory menu option, where you select each document from the menu, or via the system tree Inventory…Transactions function, where you choose the document you require in the work area. Note that these functions do not display directly on the system tree.
After activating this feature and you access an invoice, you will notice the following buttons at the top of the document:
- Issue Stock (GIV)
- Invoice Customer
- Issue and Invoice
You can elect to quote the customer first. This is an optional step.
Thereafter, you can open the quote from the Invoice Maintenance screen and select to issue stock to the customer.
Once you have issued the stock, the system generates a Good Issue Voucher (GIV) together with an unprocessed invoice.
To locate the unprocessed invoice, filter using the GIV and CINV (Customer Invoice) option from the drop down menu in the Invoice Maintenance Screen.
Select the unprocessed invoice and open it.
The Invoice Customer button activates and you can process the invoice for the goods.
If you click the Issue and Invoice, then the system will automatically process the GIV and Invoice simultaneously.
When you perform the customer enquiry, you only notice that an invoice was generated and not the GIV. Select to view the Audit Trail to view the accounts that were affected when you process invoices in three stages.
You can part deliver on an invoice and fulfil the order at a later stage by processing a GIV for the available stock which is ready for delivery, and then process a GIV for the remaining stock linked to the order, thereafter process an invoice for the total stock issued.