Record customer invoices

If you are entering invoices or free text invoices (and not posting a cash receipt at the same time as the free text invoice):

• The customer's account balance is increased by the gross value of the invoice (including VAT if appropriate).
• The account's turnover for this period (or for the next if a future period's date is entered) is increased by the net amount (goods value) of the invoice.
• The sales account(s) (profit and loss) in the Nominal Ledger are credited with the goods value according to the analysis.
• The tax output account(s) (for the balance sheet) in the Nominal Ledger is credited with the value of the tax (VAT) if included.
• The debtors control account (for the balance sheet) in the Nominal Ledger is debited with the gross value of the invoice.
• The VAT file is updated with the goods and VAT value for each VAT Rate used. The entry is made for the current ledger period unless the posting is for a future period when the appropriate month is used. This ensures that the transactions entered late after the month has been closed are included in the next VAT Return.

If you are entering a free text invoice and posting a cash receipt at the same time:

• The customer's account balance is decreased by the receipt value. The receipt is allocated in part or full to the invoice, depending on the amount involved. If the receipt amount is more or less than the full invoice amount, the invoice is fully or part allocated, and the balance of the receipt is fully or part allocated on the account. You can use Allocate Receipts to allocate any overpayment to other transactions, if appropriate.
• The default bank account (balance sheet) in the Nominal Ledger is debited with the receipt amount.
• The bank account in the Cash Book is debited with the receipt amount if appropriate.
• If settlement discount was specified then this will have been taken and the amount of the discount is posted to the default discount allowed account (profit and loss) in the Nominal Ledger.
• The debtors control account (for the balance sheet) in the Nominal Ledger is credited with the receipt amount.

Open: Sales Ledger > Enter Transactions > Invoice.

1. Select the customer account you want to add an invoice to.
2. If the customer account is in a difference currency, enter or amend the exchange rate

   You always enter the goods value in the currency specified on the customer's account.

   The exchange rate is displayed in an additional exchange rate box. The exchange rate is set in the Currencies and Exchange Rates option in the Accounting System Manager. You can change the exchange rate when entering the invoice if the exchange rate is set to be Amendable.

   Nominal postings are made in the base currency you have chosen for Sage 200. If the customer uses a Single Exchange Rate, the exchange rate set when entering the invoice is used to calculate the base currency amount. If the customer uses a Period Exchange Rate, the relevant period exchange rate is used.

   Note: You can only change the exchange rate if the exchange rate is set to be amendable in the Accounting System Manager.

3. If the customer account is in a different EU currency, and the invoice is a triangulated transactions select Triangulated.

   This makes sure that the transaction is marked with the correct indicator on the EC Sales list.

4. Enter the Invoice details

   • Enter the Invoice date.

     Why is the Invoice date highlighted in red or orange?

     This depends on the Transaction date validation settings entered in the Accounting system Manager Module.

     If the Invoice Date entered is in the Unacceptable range, it has a red highlight and the invoice cannot be saved.

     If the Invoice date is in the Acceptable range , it has a yellow warning highlight and can be saved.

   • The Due date is calculated automatically depending on the Payment Terms entered on the customer's account. You can change this here if required.
   • To check that the Reference and Date combinations are unique, click the button.
5. Enter the Transaction details.

   Enter the Goods value, Discount percent, Discount days and Discount value.

   When you select a customer account, the defaults from the customer's account for the Discount percent and Discount days are entered. You can override these if required.

   Note: When a settlement discount is entered on an invoice, VAT is calculated on the Goods value less the Discount value. If the Country code on the customer's account is the Republic of Ireland (country code IE) then the VAT is calculated at the goods value regardless of any settlement discount.

6. Enter Nominal & Tax Analysis.

   When you select a customer account, the default nominal code and default tax code from the customer's account are entered. You can override these if required.

   • Accept or amend the Tax analysis (VAT) for each item on the sales invoice.

     If you are working with goods items which have different tax (VAT) rates applied to them, ensure the tax value in the tax analysis matches the tax value (VAT) for the transaction.

   • Accept or amend the Nominal account specified.

     You can change the Narrative to make it more meaningful for your business.

     Note: Both positive and negative values can be entered in the goods value for nominal analysis.

7. Enter the Project Analysis.

   If you want to assign the invoice to a project enter the project details on the Project Analysis tab.

   Note: The Project Analysis tab is only available if you are using the Project Accounting module.

8. Click Save.

Open: Enter Transactions > Free Text Invoice.

1. Select the customer account you want to add an invoice to.
2. Enter the Invoice header details.

   • Their reference
   • Invoice date

   • Settlement

     Enter the settlement discount percentage if applicable.

   • Exchange rate

     If required, change the exchange rate if the invoice is for a foreign currency customer.

     Note: You can only change the exchange rate if the currency is set to be amendable on the Settings tab of Currencies & Exchange Rates in Accounting System Manager.

   • Triangulated

     Select this if the invoice is for a EU currency customer and it is a triangulated transaction. This makes sure that the transaction is marked with the correct indicator on the EC Sales list.

3. Enter the Invoice details.

   • Description
   • Quantity
   • Unit Price
   • VAT Code
   • Line Total

   The Invoice totals are calculated automatically.

   • Select the Show tax analysis check box if you want to check the VAT analysis for the transactions.

4. If required, you can change the Nominal Account using the drop-down list.

   The nominal account specified on the customer account is displayed by default.

   Note: If the nominal account is not a valid account, a warning message will appear. If you continue with the posting without changing the nominal account, the invoice will be posted to the suspense account.

5. To post a payment with the invoice, select Payment received.

   Note: If the account uses foreign currency then the bank selected must use the same currency.

   Enter the:

   • Cheque Number

   • Amount to pay

   The receipt includes any discount on the invoice, and the amount outstanding is displayed on the invoice.

   Note: The cheque value must not exceed the invoice value. If you have received a cheque that is greater than the amount to pay, then you must use a different method for entering the receipt.

   • Bank account

   Note: If the customer is a foreign currency account, then the bank selected must use the same currency.

   If you do not use the Cash Book your company's default nominal bank account is displayed. You canamend this.

6. Click Save.