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Introduction to Invoices in Standard Accounts

This section describes the Invoice register in Standard Accounts and Standard Stock. If you are using any other Standard product, please click here.

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The Invoice register is a record of your company's sales. Each time you make a sale, you should enter an Invoice, print it and send it to the Customer. You will therefore use the Invoice register for a number of tasks:

  • The printed Invoice sent to the Customer acts as a demand for payment;

  • Unpaid Invoices in the register provide the basis for your debt chasing reports; and

  • Each Invoice causes a Nominal Ledger Transaction to be created, thus generating the turnover and debtor figures in your monthly and yearly management reports. This creation process is automatic, requiring no intervention or work from you.
You can record three types of sales transaction in the Invoice register:
  1. You will issue standard Invoices, or demands for payment, when you have delivered goods or carried out work before you have received payment. You should record payments against such Invoices in the Receipt register.

  2. You will issue a Cash Note when you receive payment at the same time as carrying out the work. When you enter a Cash Note in the Invoice register, Standard Accounts will treat it as having being paid, so there will be no need to enter a separate payment record in the Receipt register. Standard Accounts will also look after the Nominal Ledger implications for you (debiting the Cash Account rather than the Debtor Account).

  3. You should use Credit Notes to correct mistakes in Invoices, or to cancel Invoices that have been raised in error. They are, in effect, negative Invoices that reduce your turnover and debtor figures. Again, Standard Accounts looks after these Nominal Ledger implications automatically.
If you would like the Nominal Ledger implications of all these types of Invoice to be looked after automatically as described, switch on the Invoice option in the Sub Systems setting in the Nominal Ledger.

The use of the Invoice register, including each of these types of sales transaction, is now described in detail. Before you start entering Invoices, however, you must ensure that you have defined the current financial (accounting) year, using the Fiscal Years setting.

Before working with Invoices, you should also look at the following settings and registers: