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In the previous lesson you created the sales order, i.e. you sold three items for $188 + Taxes to the Customer - DAYS INN OF TAMPA. In the current lesson you will create an invoice for this sales order - the document which shows the Customer how much he owes you.
In order to complete this lesson you need to go through the previous lesson and create Sales Order. |
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The invoice notifies the Customer about the delivery of the whole order or just part of it to his warehouse, and how much he is to pay for it. The copy of this document is sent to the Customer and remained at your company for keeping the records in order.
The invoice will contain the same information that is in the sales order: Free Accounting automatically fills the fields of the invoice with the exact data from the selected sales order.
Note:
You can change the quantity of the ordered items in SO and deliver only part of it. So there can be more than one invoice for a sales order. The total amount of these invoices will be equal to the total amount of the sales order.
Take the following steps to create an invoice:
- Press either
 or  on the Commands Panel, select  Invoices in the Navigation Pane, make right click in the working window and select Add.
- Select the Customer - DAYS INN OF TAMPA in the Select Source Document window. Press the Ok button.
- Verify the information that is displayed in the invoice. See Sales Order.
- Save and finalize the invoice pressing
 or  and  buttons situated on the toolbar of the New Invoice window.
The total amount of the invoice is equal to the total amount of the sales order. In the end you will have such an invoice:
When you finalize the invoice, several transactions go through the Master Transaction Ledger:
- Invoice Entry for Customer - there are three items in the invoice, that is why three invoice entries go through the MTL (Sales Income account is affected). The sum of each transaction is the price of the items at which they were sold.
- Sales Taxes for Invoice(Goods Sold) - the total tax amount. Two accounts are affected: Tax Expense and Accounts Receivable.
- Delivery of Goods to Customer - there are three double transations. Two accounts are affected: Inventory Asset and Cost of Goods Sold. The amounts of the transactions are inventory costs of the items sold.
When you create an invoice, the quantity on hand of the items sold is changed in the inventory (view Items List - items' records), and there appears a record of the transaction in the Inventory Control Journal according to which you can see how many items left your inventory, at what price and on what invoice (reference number) and other additional information.
When the Customer receives the invoice from your company, he has to pay for the goods. So, you are to receive payment from him.
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