Functionality Of Receivables And Paybles Invoice In ERP
Posted By : Aarushi Sharma | 30-Jan-2018
Invoices are the most important part in ERP because it tells how much amount is earned by any company or how much is to be paid.Company financial details are stored here.
Two types of invoices are created Receivables(Sales Invoice) and Payables(Purchase Invoice)
Receivables:
Sales Invoice are created when any sales order is packed.When an order is packed then an invoice is generated from the company to the customer.Sales order amount is the Open Amount of the invoice.
If the customer has added some agreement then this agreement terms is also added to the invoice.Products added in the order is added to the invoice called as Items.If the company wants then it can do some adjustments in the invoice and change the amount of the invoice.
Once the invoice is created then comes the Payment section.The company can receive the payment by Cash, Credit Card, EFT etc.There is some status added in the Payment section like Received, Confirmed, Cancelled or Void.Every status has its own functionality.
The customer can add it's agreement through which it can also set some Credit Limits.This credit limit is used while creating a sales order, once the credit limit is reached then more orders are unable to create.There's a place where we can check the customer available balance.Also, invoices can also be paid through this balance.
Payables:
When any Purchase Order is created and received then a Purchase Invoice is created.If an agreement is created then this agreement terms can also be added when the invoice is created.Extra items can also be added to the invoice.Also, some adjustment can be done to the invoice which can change the amount of the invoice.
After invoice creation, another step is the payment.Different type of payment can be done(Vendor Payment, Commission Payment, Refund).The vendor can be paid by Cash or Credit Card.
Reports can also be generated through which anyone can check the balance of the vendor.
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About Author
Aarushi Sharma
Aarushi is a bright QA engineer with experience in manual testing. Apart from that she loves to dance.