I renames the pre defined ‘Sales’ to -> Sales (GST Invoices)
My question is I also have some proforma invoices which I want to keep those ‘proforma invoices’ under the account - Sales (Proforma Invoices), and as and when required would like to manually change the account to - Sales (GST Invoices) so that that specific proforma invoices is updated with - Sales (GST Invoices)
You have not provided enough information to answer. And some of your comments are confusing.
Why are you reporting sales under Expenses? They should be categorized as income.
What are you referring to as pro forma invoices? A pro forma invoice is not an actual invoice and should, therefore, not be posted to any income or expense account. A true pro forma invoice has no financial effect. In Manager, pro forma invoices should be created as sales quotes, but given a different title.
How are transactions posted to Sales (Proforma Invoices)? Are these sales of inventory items? If so, you must edit individual items to designate what income account they are posted to. This will not be editable on individual sales invoices.
Yes you are right again we could have used ‘sales quotes’ as that would have no financial effect.
But in our case it’s a bit different as we provide renewal service, so at time even with the proforma invoice (sales quote) we need to renew the service but we do not receive the payment at time so these invoices are placed under - ‘proforma invoice’ and when a client ,makes a complete payment we mark it as GST Invoice (Tax Invoice).
The issue is if we keep the proforma invoice(sales quote) even after renewal of the client account then it will not show us the amount receivable from the client under -
Reports -> Customers -> Customer Statements (Unpaid invoices)
Screenshot - https://i.imgur.com/NmP1xfa.png
But then the customer has to pay for this invoice once their service is renewed from our end as per there instruction but they may pay after 1-2 months so we keep it as proforma invoice - Under Sales (Income), As you know every company has their own small requirements and methods of accounting to help their business and customers.
The transactions are posted as Sales of ‘Non-inventory Items’
At the end of every month we have to convert the ‘Sales (Proforma Invoices)’ to ‘Sales (GST Invoices)’ for the customers who have completed their payment that month, also we need to create 3 reports
(i) sales report of that month [Sales (GST Invoices)]
(ii) purchase report of that month [Purchase (GST Invoices)] - usually always GST invoices as we complete the payment in advance
(iii) GST Tax Report - [Under - Reports -> Tax Summary]
This we need to give access to our CA for Tax Filing
I hope I was able to clearly answer this time if any confusions are there please let me know so that I can further elaborate on that context
Neither of the screen shots shows the accounts you mention. They show only the default Inventory - sales and Sales. How do these relate to the ones you mentioned? And where are the ones you mentioned on your chart of accounts?
If you use a sales quote as a pro forma invoice, you will never be able to reassign it as an invoice or transfer any income into your income accounts. Typical use of pro forma invoices is for customs clearance, or so the customer has some documentation on which to base an advance deposit under conditions when you cannot enter a real sales invoice. The ordinary way to handle the situation you described, with renewed services, is to issue a sales invoice. If you do not expect payment for several months, indicate a due date for the future date when payment is due to you.
That is correct, because sales quotes have no financial effect. That is why you must issue a real sales invoice, as described above.
This is not proper accounting. The customer owes you the money, even if the terms of your agreement are that payment is due 2 months in the future.
Yes, but you cannot ignore basic accounting principles. If the customer is obligated to pay you, create a sales invoice, and the amount due will be added to Accounts receivable.
Using non-inventory items will allow you to change the account to which the transaction is posted. But, unless you use a real sales invoice, it will not be posted anywhere. All you have described is selling on credit, a perfectly ordinary and common practice. That is what sales invoices are meant to be used for. Manager will track their status, post them to Accounts receivable, display them on customer statements, and so forth. When the customer pays, you enter a receipt and post it to that sales invoice. Posting the receipt will remove the sales invoice amount from Accounts receivable.
This is the way Manager was meant to be used. This is the way the Tax Summary report will work correctly for you. You have not only made things more complex than they need to be, you have made them so they will not work at all. (That is why you needed to ask your question.) Read these Guides for more information: https://www.manager.io/guides/7178 https://www.manager.io/guides/7820
The ordinary way will not work for this accounts and do need some customization, so i need to find a way so that our accounting purposes can be handled within the limits of the software, I am working on that
We don’t intend to raise the TAX INVOICE for a client who has not yet paid their invoice, if we do that we have to pay the GST (Tax) on our own even if the client has not paid. And at time if they never pay then it’s a complete loss for us.
We don’t intend to do that…we questioned in the Forum -
if not everything is solved while sipping coffee then we need to rise and fix the complexities and yes they do get resolved…‘When there is a Will there is a Way’
I have almost accomplished what was required using the Custom fields. - Thank you @sharpdrivetek@Tut and Team Manager
No it is not. At the point that you determine they will not pay, you write off the bad debt. Then, you will get back taxes related to the sale and income. See https://www.manager.io/guides/14465.
You cannot accomplish any of the things you have discussed with custom fields. Contents of custom fields are only informational. They are not used by the program in any calculation, so they cannot be used to control accounts to which transactions are posted. If you think you have achieved this, you are mistaken.
Now I am able to retrieve the information ( Invoice details) based on Tax Invoice & Proforma Invoice…segregated also the tax summary. Also I know my requirements best so I also know what needs to be done to avoid mistakes. I think I was not able to make you understand our situation and requirements. No worries @Tut
@vwits - firstly, I understand what you are trying to achieve.
However, I question if your “Sales (Proforma Invoices)” account should be an Income account.
Those Proforma Invoices may be better posted to a BS > Liabilities account “Unpaid Renewals”.
Then at the end of every month you can still convert the Proforma Invoices to Sales Invoices.
Then currently, how does your client get a TAX INVOICE for their accounting purposes.
One way, would be to included a statement on the Proforma Invoice to the effect of:
“This Proforma Invoice, upon payment becomes your Tax Invoice. The amount paid being tax inclusive”
@Brucanna thank you for showing concern…our clients receive invoices from our Billing Portal and Client Area, we use WHMCS for that. We are trying out Manager for accounting but currently use BUSY Accounting Package.
I was able to resolve the problem I was facing after @Tut advised…