Items in Delivery Notes should be able to be used in invoices.
For example, If I create a new delivery note with 3 items,
Those 3 items should be shown on “Uninvoiced” category.
Or we should be able to use the “Copy to New Invoice” option
Or Both
Or sum up all our delivery notes for a certain client, and create a new invoice, with all those products.
Quoting the guide notes…
"When issuing delivery note, you can either manually enter all information all use Copy to function which will allow you to create new delivery note from existing invoice, quote or order.
Typically you would issue customer sales invoice first, then create delivery order from sales invoice."
In Greece, where things are always fuzzy:
Invoice means products are moved and charged to the customer.
Deliver note means the same but with no charge.
We use the delivery note as below:
Lets say we print a delivery note for pruducts we sent at 05 May 2015.
We are required to print an invoice for that delivery note until the 15th of the next month, so that will be until 15 April 2015.
When the customer is a goverment agency, it must be until 15th of the next month but no longer than the end of the same year. 31/12.
Last month we delivered a new material to a customer. Terms with that customer was, I will issue invoice if the quality approved otherwise I will return the item. We send material with delivery note and waiting for customer approval to issue invoice.
The real problem is, still that item is in our stock. how can sold with issue.
What is your question, @ahmedansar? You can create a delivery note. If the customer approves, you will issue a sales invoice. The customer hasn’t purchased the item, so you still own it. How would you like things to be any different?
@Tut is right. From accounting point of view, you still own the item because customer didn’t purchase it. Your item is at different location (your customer site).
Manager currently tracks how many items you own. It doesn’t track where are these items located. This is upcoming feature called “Warehousing” which will track location of items.
Thanks for your quick reply.
Yes you are correct from accounting point view. But practical side it makes some issues.
Example : in month end some customer will request to give material but give invoice next month.
As mentioned above for new customers and new products for old customers we gives delivery note only.
In 90% cases we can invoice after few days or a month. In 10% we takes back or give FOC.
In this situation our stock will not be accurate. That makes lot of issues.
A fundamental principle of accounting is to record transactions as they occur. Any good accounting system is designed with this principle in mind. Otherwise, it will not accurately show your company’s true financial position.
If you deliver goods to a customer without providing a sales invoice, you are extending them credit. A better approach would be to raise the sales invoice with payment terms and due date as agreed with the customer. In this way, the customer’s obligation is clear. The way you are describing is risky. Suppose the customer goes out of business or declares bankruptcy. You would have no claim on their assets. (Of course, the reason they request a delayed invoice is usually because they don’t have money to pay you. That should be a warning signal.) If the goods are returned in good condition and can be resold, you can issue a credit note, which will return the items to your inventory.
When transactions happen without proper accounting records, you are depending on people’s memories. That often leads to trouble. I am not suggesting you should be any less helpful to your customers, only that you should document the transaction with a timely sales invoice, indicating whatever flexibility in payment terms you want to extend to the customer.
In the ideal world you should be able to do both as both are universally practised:
Create the Delivery Note first and then copy to Sales Invoice.
Create the Sales Invoice first and then copy to Delivery Note
Managers convention of - customer sales invoice first, then create delivery order from sales invoice - doesn’t provide the flexibility as practised by businesses, e.g. the local engineering supplies business only issues to regular customers Delivery Notes through out the month and then, at month end, sends out one invoice detailing the Delivery Notes issued.
Under Manager, their Inventory on Hand would be impossible to track except on the first of the month. In the local area this, invoicing at month end, is not uncommon for “reliable” regular customers. Bring on the warehousing feature, but after Custom Control Accounts and Budgeting
Some thoughts on developing your Inventory/sales order processing system
In most systems I have seen it is a delivery note and a goods received note that update inventory quantities and not the sales or purchase invoices which may well arrive later
Basically you need to be able to see a goods shipped not yet invoiced report and a goods received not yet invoiced report so you can make stock accruals
The sequence of processing sales orders should be 1 order received 2 order delivered 3 order invoiced. For each order it would be good to see whether it has been delivered and whether it has been invoiced
Is there a way to discover which items from the warehouse is not invoiced but delivered to the customer and which items is invoiced but not delivered yet, since invoice and delivery note is not always issued at the same time?
Other than looking at individual inventory items, no. But there needs to be a report which would break quantity of all inventory items by location so you don’t have to click on individual inventory items one by one to discover their break-down by location.
Hi
Also can we add the price and total to be shown in the delivery note ?
one of our major retail chain ( under consignment basis )
they requested to receive delivery note ( QTY and price included ) along with the goods
then when product sold , they will send us monthly sales report so we issue related invoice with VAT%
No. Delivery notes do not include pricing information. They are basically packing slips. I suggest using a sales quote. You can change the title to Pro Forma Invoice or something similar. There will be no financial effect, but your retail outlet will have the information. When they send their sales report, issue the sales invoice. See the Guide: Manager Guides.
You can issue delivery notes as you currently do, but may not need to send them to the retail outlet.