Account Receivables in Manufacturing:
Invoicing & Receipts

In manufacturing, managing account receivables means more than just sending invoices. It means timely processing of receipts, handling partial and batch payments, and keeping your cash flow healthy. This post shows how SimpleManufacturing™ ERP Software simplifies Invoices and the Payment Processing workflows.

What Is an Invoice?

An invoice is a legal statement demanding payment for goods or services delivered. Within SimpleManufacturing™ ERP:

• It becomes an account receivable if not fully paid.
• It increases your AR balance when unpaid.

Purpose of an Invoice

Invoices serve multiple purposes:

• Identify products/services delivered to the customer.
• Specify the amount due and due date.
• Provide an invoice number for tracking.
• Enable cash-flow forecasting.

How Invoices Are Created

Invoices in SimpleManufacturing™ ERP are created automatically during fulfillment or manually:

• Automatic: Based on the customer’s order, pulling “Bill To”, “Ship To”, items, quantity, pricing, tax.
• It may include extra data like lot numbers, serial numbers, date codes, or specs.

What Is a Receipt?

A receipt represents payment received from a customer (or third party). It is always linked to an invoice or used as a credit for future services.

• Decreases AR balance when applied.
• May represent prepayment or partial payment.

How Receipts Are Processed

Multiple methods are supported for recording receipts:

• From the invoice: cash, check, credit card, ACH, EFT.
• Single payment to multiple invoices by selecting customer and linking open invoices.

Batch Receipt Processing

For efficiency, multiple receipts can be processed as a batch:

• Faster than individual processing.
• Matches check deposit totals for reconciliation.