Reconciling Inventory Invoices with receipts / deliveries

Dear @lubos,

When will you improve the Delivery Note and Goods Receipt function ?

Currently all the users I belive will have difficulty to tracking Purchase Invoice and Sales Invoice status (Wether the inventory received or still in progress)? If possible at least help us to generate report for this, it’s really a pain to track down this logistic transaction.

I think you misunderstand the relationship (actually, the lack of relationship) between invoices, goods receipts, and delivery notes. When the Goods Receipts and Delivery Notes tabs are enabled, the transaction that is paired with a purchase invoice or sales invoice is a payment or receipt, respectively. A goods receipt or delivery note has nothing to do with any invoice, except that the goods receipt or delivery note may include a reference number to an invoice for information only. When these modules are enabled, inventory movement is no longer associated with the invoice. Only the receivable or payable is associated with the invoice.

If you want inventory movement to be associated with an invoice, you should not use goods receipts or delivery notes.

the initial request i believe is not to associate inventory with the invoices but to track which invoices are pending to be delivered or received physically. and this is the function of Delivery Notes and Goods Receipts tab.

@rully_p in the Inventory Items tab you can drill-down the related invoice by clicking on the non-zero quantity displayed under Qty to deliver or Qty to receive columns. this will not solve your requirement completely because for invoices having more than one inventory item you will have to drill-down on each inventory item separately. but the suggestion would help if all inventory items on an invoice are usually delivered together.

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I understood the question. My point was that invoices are not pending to be delivered or received. They await only payment—either incoming or outgoing. The goods receipts and delivery notes are distinct transactions recording movement of inventory items.

@Tut, in the real business there’s a possibilty of partial shipment especially for project or commodities. So, in reality even you paid / received the invoices (sales / purchase), you should be able to track down which invoices that still need to be followed up which invoices done.

I will just reiterate that invoices are demands for payment, not methods for tracking delivery or receipt of goods or services. So I believe you are looking to them for information they do not provide, in Manager or any accounting system. Other aspects of the program furnish the information you seek. What you are really asking for is the ability to monitor sales order fulfillment.

@rully_p based on Sales process tracking for invoice and inventory quantity (should be also possible to apply to the Purchase process as well), as @Tut says there are two processes, one for invoices and one for quantity movement in inventory. You can have one Sales Order and more than one Sales Invoices, see Forumpost “How to verify whether a invoice is made for a particular sales order”.
Likewise I think you could have more than one Delivery Note for that Sales Order.

This is only an idea as such for this process and maybe I am misunderstanding something but when a Sales Order (or a Sales Invoice if Sales Order is not used) is recorded in Manager you can copy the Sales Order to more than one new Delivery Notes. The Delivery Notes then stands for the INFORMATION about what/how/when etc is to be delivered NOT confirmation of delivery as such as that has still not been done. This is likely a different way of thinking about Delivery Notes and maybe not how Manager was programmed as such but if it works…

Then add a new Custom Field on the Delivery Notes saying Delivered: Yes/NO if many Delivery Notes for each Sales Order or a fulfillment ratio if there is only one Delivery Note. This field is only edited afterwards when a fulfillment of delivery is done, either in full or as a ratio.

By setting this up in this way you must be aware that the whole quantity is already taken out of inventory in inventory reports and pinpointed to this Sales Order on the moment the Delivery Notes are recorded in Manager.

Then if Delivery Notes tab is opened, a column for the previous mentioned Custom Field can be seen which gives quick overview of the status of all Delivery Notes. Note that there is a column saying “Order number” so you would also see which Delivery Note belongs to what Sales Order. If this “Sales order” field does not come up in Custom reports see the above mentioned forumpost for a solution.

Example: One Sales Order is recorded for 3 items, each to be delivered in 2,4,6 weeks time. For the same Sales Order lets say two invoices will be issued, one due in 3 weeks time and the other in 6 weeks time. Manager should be able to handle both of these processes where all the records are linked/referenced together and therefore Custom Reports can be used.

Hopefully this makes sense, but is an idea as I said

I don’t see anything wrong with what you say, @Tor, but I think you make things more complex than necessary. Copy sales orders and sales invoices to delivery notes as many times as necessary, adjusting quantities for partial delivery. Rather than the custom field, let the delivery note itself stand as confirmation of delivery. (That’s what the program assumes.)

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If we can get this topic back on track - there is nothing in the original post about Sale Orders, so all that discussion is a distraction. So is all the repeated lecturing about how Manager currently functions.

The original post’s “requested suggestion” was “help us to generate a report” where the Inventory Items quantities between the Invoice (Purchases or Sales) can be reconciled to the Inventory Item quantities of the associated Goods Receipt or Delivery Note.

It is understood that the Invoices are demands for payment, so that is not under question. However, if we focus on Purchases Invoices, how do you verify the status that a particular Purchase Invoice can be paid without first validating that the actual Inventory Items quantities have been received.

@sharpdrivetek advised that "in the Inventory Items tab you can drill-down the related invoice by clicking on the non-zero quantity displayed under Qty to deliver or Qty to receive columns. But they also quite correctly noted the shortcoming of this with “this will not solve your requirement completely because for invoices having more than one inventory item you will have to drill-down on each inventory item separately.”

Or to explain this lack of ability to reconcile the actual Inventory Item quantities another way.
You have accounts dept. staff who only have permissions for the Customers / Sales Invoices and the Suppliers / Purchase Invoices tabs only, but no permissions for the Inventory Items, Goods Received or Delivery Note tabs.

Therefore how can they:
Pay a Purchase Invoice without knowing if the actual Inventory Items have been received.
Demand that a Sales Invoice be paid without knowing if the actual Inventory Items have been delivered.

The requested suggested report would provide the Invoice status by reconciling the actual Inventory Item quantities between the related forms. My only suggestion would be this, that it be an exception report, that is, it only lists Invoices where there is a mismatch of Inventory Item quantities so not to be overly cluttered. Any Invoice not listed ='s Inventory Item quantities are matched.

This data matching report requires no change to Manager processes. Any Invoice listed on the report can be investigated as to cause. In effect, a audit tool.

Yes, some organisations may have supervisory authorisation oversight, however smaller and/or more modern management organisations have eliminated this overhead, the advantage of computers.

@rully_p - if you confer with the above, then it can be added to Ideas

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Hi @Brucanna, thank you very much to elaborate what my point of view is. Spot On…

You should try Accurate accounting system then.

I’m removing this from ideas on the basis that Sales Orders tab can already do this.

Basically, if you want to track whether customer order has been fully delivered and invoiced, you create Sales Order which can be then linked to one or more sales invoices and delivery notes (single order can be invoiced or delivered in multiple parts).