Invoices and Receipts – Account Receivables

What is an Invoice in SimpleManufacturing™?

An Invoice is a legal statement of monies owed to a business for products or services rendered. An unpaid Invoice with a remaining balance due amount is considered an Account Receivable. Unpaid Invoices increase the Account Receivable balance.

Purpose of an Invoice?

An Invoice is used to identify, in detail, the product or service rendered to a 3rd Party, primarily a Customer. Additionally, it determines the amount due, when the payment is due, and a Unique Identifier, in most cases, an Invoice Number.  Invoices created in SimpleManufacturing™ as the products or services are necessary for cash-flow projections. 

How are Invoices Created?

Invoices are created within SimpleManufacturing™ automatically during the fulfillment process. Although most invoices are created automatically, manual creation of an Invoice is also available. 

Automatic Invoicing

The Order Fulfillment process with SimpleManufacturing™ identifies the product(s) or service(s) rendered in compliance with the Customers Order. The Order Fulfillment process creates an Invoice that is intended to match the requirements of the Customer’s Order. Those requirements typically include standard information such as Bill To, Ship To (when applicable), product or service rendered, quantity, unit price, and sales tax (when applicable). The Invoice may include Lot Numbers, Date Codes, Serial Numbers, and Specifications.

An example of an Invoice prepared by the SimpleManufacturing™ Order Fulfillment process based on the requirements within the customer’s Order is shown below.

What is a Receipt in SimpleManufacturing™?

A Receipt is a payment, or monies received, from a 3rd Party. The payment could be linked to an Invoice or a Pre-payment for services or goods. The processing of a Payment decreases the Account Receivable balance.

Purpose of a Receipt?

Recording the receipt of monies from a 3rd Party has several purposes. First, registering this payment receipt is necessary to maintain the account balance for the account the funds were transferred into. Secondly, if the receipt, or payment, is to pay an Invoice, the receipt transaction is linked to the Invoice being paid. Lastly, if the receipt of monies is a pre-payment, down payment, or to be used towards future products or services, a credit is issued and linked to the specific 3rd party.  The credit can then be applied to the Invoice when the product or service has been rendered.

How are Receipts Created?

There are several ways a receipt can be recorded SimpleManufacturing™.

Payment for a Specific Invoice Number

Payment can be recorded directly from an Invoice.  Depending on the Payment method, such as Cash, Check, Credit Card, or Electronic Fund Transfer (EFT), will dictate the payment information entered. Cash payment requires verification of the amount received and the date received. Secondly, when a check is provided, the amount, check number, and date of receipt. Thirdly, Credit Card payments require the amount paid, merchant transaction ID, and transaction date. Lastly, Electronic Fund Transfer (EFT) involves the amount deposited, bank or transaction ID, and date of deposit.

An example of the simplicity of recording a Payment towards an Invoice is shown below.

Single Payment for Multiple Invoices

Recording a single payment that pays multiple Invoices is another simple process within SimpleManufacturing™. This process is as simple as selecting the 3rd Party that has made a payment, then selecting all of the unpaid invoices linked to that 3rd Party, entering the necessary payment information such as Payment Date, Check Number, Merchant Transaction ID, Back Transaction ID and the bank account which the funds will be deposited into.

An example of the simplicity of recording a Single Payment towards multiple unpaid invoices is shown below.

Batch Receipt Processing

Recording all receipts or payments received in a day can be processed using the Batch Receipt option within SimpleManufacturing™. Batch receipts have many advantages for businesses that process payments daily. First, it’s a quicker process than processing each receipt individually. Secondly, checks can be deposited as a single deposit, and therefore a more straightforward process for bank statement reconciliation – if all checks are cleared and the total deposit matches, all checks are marked cleared. This saves much time instead of clearing all checks individually. Lastly, the processing time of a batch is significantly less than processing checks individually.  In conclusion, batch processing saves time and resources. 

An example of the Batch Receipt, or payment, process, and printout is shown below.

Choosing SimpleManufacturing™ as your next ERP / MRP Business Software Solution

The ERP Software you choose now will determine your company’s success. Please pay particular attention to its scalability, current features, and ability to be modified to meet your future business needs. Our flexible approach, focusing on efficiency and seamless integration with your current processes, with the expectation of change, provides a long-lasting solution.