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How do I link a Sales Order to an existing Bank Statement?


#1

Hi all, I’m new to Manager and new to small business in general. I’m slowly picking things up by reading the Guides and just playing around with the software, but I’m a bit stumped by reconciling sales.

In a nut shell: I make and sell jewellery. I have each piece listed as an Inventory Item. I then set up each customer who has bought something (only 6 so far, thankfully!) and a Sales Order. I have then imported my bank statement with the payments.

My question is: How do I link each Sales Order to an existing payment on my Bank Account?

The tricky bit: I sell mostly through Etsy, so rather than being paid into my bank on a per item basis, I get paid on a per fortnight basis. That means there’s no breakdown of what got sold and when on the Bank Account.
Also, because I use Etsy, it means I don’t have to create my own Sales Invoices as such, it’s all done automatically by them.

Any help will be greatly appreciated.


#2

You should not use sales orders for this. Sales orders have no impact on your financial performance or position. They only record the receipt of an order, letting you know you have work to do or goods to deliver. In your case, they are probably unnecessary entirely, because your situation is simple. In fact, if you are making the jewelry in advance and then selling it, their use is incorrect.

What you need is a sales invoice, which records the economic activity. A sales invoice will record income and create an account receivable, which in turn will be cleared when the customer pays.

That said, if the customer pays you at time of purchase, you don’t even need the sales invoice. Just Receive Money within a bank or cash account. The disadvantage of doing this is that you are not recording the purchasing history of a specific customer.


#3

Hi Tut,
Thank you for your reply, it’s very helpful. I had a feeling I was over-complicating things and it turns out I was!
A follow up question: I occasionally sell things away from Etsy, so I will be creating a few invoices here and there. Once a Sale Invoice is created, can I then link that invoice to an existing payment in my Bank Account?
I generally only update my accounts once/month, rather than updating every time somebody pays me. If I’ve imported all the information from my online bank statement, how do I link the payment to the existing Sale Invoice?


#4

After importing a bank statement, you must categorize the transactions to the proper accounts. See the Guide at http://guides.manager.io/businesses/bank-accounts/bank-categorization. You will be categorizing an incoming payment to Accounts receivable, which will make visible another field with a dropdown list of invoices. Just choose the one the payment applies to. Or you can allocate to Customer credits and the customer’s subaccount. Payments will be allocated automatically to outstanding invoices. You may want to create bank rules to train Manager to recognize certain types transactions, too.