Sage 200 Evolution – Three Stage Invoicing

This blog article will showcase the unique feature within Sage 200 Evolution namely ‘Three Stage Invoicing.’ Now as the name implies this process allows you to stagger the invoicing process based on three stages.

Before we discuss this process let us consider the standard/normal invoicing process within Sage 200 Evolution.

Standard Invoice Processing

When processing a standard/normal invoice a customer is selected on the document, the items being sold are specified as well as other pertinent details so that the document contains detailed information. This is so that a clear picture can be determined of the items being sold and to whom these are being sold to. At the point of the invoice being processed the quantities of the goods being sold are reduced and the customer account is updated with the document value.

Three Stage Invoicing

To use the three stage invoicing feature the required setting in the inventory defaults needs to be implemented. This is how to begin the process:

Proceed to Inventory | Maintenance | Inventory Defaults | Invoices Tab.

Select the option ‘Separate Inventory Issue from Customer Invoice’. After selecting this option an inventory issue accrual account would need to be specified. An existing GL account can be selected, or you can choose to create a new GL account specifically for the three stage accrual process.

Three stage invoicing can be used when processing invoices within the inventory module as well as when processing sales orders. Therefore you will be required to also update your sales order defaults with an inventory issue accrual account if sales orders are to be processed within the three stage environment.

After implementing the required parameters in the inventory and/or sales order defaults, when opening an invoice screen you will notice that there are now three tabs available namely.

  • Issue & Invoice
  • Issue Stock (Followed by Invoice Customer)
  • Invoice Customer (Followed by Issue Stock)

These three options form the basis of three stage invoicing. Let us now showcase each option and highlight its unique features.

Issue & Invoice

This is the standard/normal process of invoicing. At this point the invoice is created with customer information and details of the items being sold. Once the invoice is processed the customer account is updated and the quantity of inventory items are reduced. Issuing of goods and invoicing occur simultaneously.

Issue Stock (Followed by Invoice Customer)

During the issue stock stage the customer information and details of items being sold are specified. The ‘Issue Stock’ option is selected and a ‘GIV’ (Goods Issue Voucher) is generated. At this stage only item quantities on the GIV document have been reduced. There is no impact on the customer account. The next step in this process is to complete the transaction by processing the customer invoice. This entails locating the processed GIV by using the ‘Open’ option from the invoice processing screen. When the GIV has been located an unprocessed invoice will be available. Select this option and then click the ‘Invoice Customer’ tab which will complete the transaction. The customer account is now updated and the transaction from the issuing of stock to updating of customer account is finalised.

A practical example of when to use the ‘Issue Stock’ feature is when goods are delivered/supplied to a customer with the invoice process occurring at a later stage.   

Invoice Customer (Followed by Issue Stock)

During this stage an invoice is generated with customer information and details of the items being sold. The ‘Invoice Customer’ option is selected and the transaction is updated. At this point the customer account is updated but there is no impact on the item quantities. The next step is to complete the transaction by processing the issue stock transaction. This process entails locating the unprocessed GIV transaction which is linked to the processed invoice. Once the unprocessed GIV has been located, select the ‘Issue Stock’ option to complete the transaction. The item quantities are updated and the transaction is finalised.

A practical example of when to use the ‘Invoice Customer’ feature is when a customer is invoiced at the present time with the goods to be delivered/supplied at a later stage.

Based on your invoicing process the Sage 200 Evolution Three Stage invoicing feature allows for the flexibility to choose the most suitable method of invoicing customers in conjunction with the delivery/supply of goods.

For a detailed presentation of the Sage 200 Evolution Three Stage Invoicing feature please view our informative video. Click here to access the presentation.

 

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