A Brief Description About Invoices in ERP
Posted By : Aarushi Sharma | 23-Feb-2018
There are different types of invoices in ERP:
1.Sales Invoice
2.Purchase Invoice
3.Partner Invoice
Only the invoice type and its representation type is different but the workflow is same.
In general, when you use all of ERP's functionality, invoices don't need to be entered manually. Draft invoices are generated automatically from other documents such as Purchase Orders, Sales Order.
Open Invoice
An open invoice has a unique invoice number. The invoice is sent to the customer and is marked by the system as awaiting payment. Reconciling invoice entries and payments.
In ERP an invoice is considered to be paid when its accounting entries have been reconciled with the payment entries. If there hasn't been a reconciliation an invoice can remain in the open state until you have entered the payment.
Reconciliation
Reconciliation links entries in an account that cancel each other out – they're reconciled to each other (sum of credits = sum of debts).
This is generally applied to payments against corresponding invoices.
Invoice Description
Description: this comes from the product, in the language of the partner,
Unit of Measure: this is defined by default in the product form,
Unit Price: this is given by the list price in the product form and is expressed without taxes,
Taxes: provided by the product form and the partner form.
Reference Number->A uniquely identified number should be given.
Record Based system
All the accounting transactions in Open ERP are based on records, whether they're created by an invoice or created directly.
Financial statements such as the general ledger, account balance, aged balance (or chronological balance) and the various journals, are all based on accounting entries. It doesn't matter if you generated the entry from an invoice form or directly in the invoice journal. It's the same for the tax declaration and other statutory financial statements.
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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.