How to: Invoice Sales

You create a sales invoice or sales order to record your agreement with a customer to sell certain products on certain delivery and payment terms.

There are a couple of scenarios where you must use a sales order instead of a sales invoice:

  • If you need to ship only part of an order quantity, for example, because the full quantity is not on hand.
  • If you sell items that your vendor delivers directly to your customer, known as drop shipment. For more information, see How to: Make Drop Shipments.

In all other aspects, sales orders and sales invoices work in the same way. For more information, see How to: Sell Products.

You can negotiate with the customer by first creating a sales quote, which you can convert to a sales invoice when you agree on the sale. For more information, see How to: Make Offers.

If the customer decides to buy, you post the sales invoice to create the related quantity and value entries. When you post the sales invoice, you can also email the document as a PDF attachment. You can have the email body prefilled with a summary of the invoice and payment information, such as a link to PayPal. For more information, see How to: Send Documents by Email.

In business environments where the customer must pay before products are delivered, such as in retail, you must wait for the receipt of payment before you deliver the products. In most cases, you process incoming payments some weeks after delivery by applying the payments to their related posted, unpaid sales invoices. For more information, see How to: Reconcile Payments Using Automatic Application.

You can easily correct or cancel a posted sales invoice before it is paid. For example, this is useful if you want to correct a typing mistake or if the customer requests a change early in the order process. For more information, see How to: Correct or Cancel Unpaid Sales Invoices. If the posted sales invoice is paid, then you must create a sales credit memo to reverse the sale. For more information, see How to: Process Sales Returns or Cancellations.

Items can be both inventory items and services, denoted by the Inventory and Service types on the item card. The sales invoice process is the same for both item types. For more information, see How to: Register New Items.

You can fill customer fields on the sales invoice in two ways depending on whether the customer is already registered. See steps 2 and 3 in the following procedure.

To create a sales invoice

  1. On the Home page, choose the Sales Invoice action.
  2. In the Customer field, enter the name of an existing customer.

    Other fields in the Sales Invoice window contain standard information about the selected customer. If the customer is not registered, follow these steps:

  3. In the Customer field, enter the name of the new customer.
  4. In the dialog box about registering the new customer, choose the Yes button.
  5. In the Select a template for a new customer window, choose a template to base the new customer card on, and then choose the OK button.
  6. A new customer card displays the information on the selected customer template. Fill in the remaining fields. For more information, see How to: Register New Customers.
  7. When you have completed the customer card, choose the OK button to return to the Sales Invoice window.

    Several fields on the sales invoice are now filled with information that you specified on the new customer card.

  8. Fill in the remaining fields in the Sales Invoice window as necessary. Choose a field to read a short description of the field or link to more information.

You are now ready to fill in the sales invoice lines for products that you are selling to the customer or for any transaction with the customer that you want to record in a G/L account.

If you have set up recurring sales lines for the customer, such as a monthly replenishment order, then you can insert these lines on the order by choosing the Get Recurring Sales Lines action.

  1. On the Lines FastTab, in the Type field, select what type of product, charge, or transaction that you will post for the customer with the sales line.
  2. In the No. field, select a record to post according to the value in the Type field.

    You leave the No. field empty in the following cases: -If the line is for a comment. Write the comment in the Description field. -If the line is for a nonstock item. Choose the Select Nonstock Items action. For more information, see How to: Work With Nonstock Items.

  3. In the Quantity field, enter how many units of the product, charge, or transaction that the line will record for the customer.

    Note

    If the item is of type Service, or the Type field contains Resource, then the quantity is a time unit, such as hours, as indicated in the Unit of Measure Code field on the line.

    The value in the Line Amount field is calculated as Unit Price x Quantity.

    The price and line amounts are with or without sales tax, depending on what you selected in the Prices Including Tax field on the customer card.

  4. If you want to give a discount, enter a percentage in the Line Discount % field. The value in the Line Amount field updates accordingly.

    If special item prices are set up on the Sales Prices and Sales Line Discounts FastTab on the customer or item card, the price and amount on the sales line automatically update if the price criteria is met. For more information, see Record Sales Price, Discount, and Payment Agreements.

  5. Repeat steps 9 through 12 for every product or charge you want to sell to the customer.

    The totals under the lines are automatically calculated as you create or modify lines.

  6. In the Invoice Discount Amount field, enter an amount that should be deducted from the value shown in the Total Incl. Tax field.

    If you have set up invoice discounts for the customer, then the specified percentage value is automatically inserted in the Invoice Discount % field if the criteria are met, and the related amount is inserted in the Inv. Discount Amount Excl. Tax field. For more information, see Record Sales Price, Discount, and Payment Agreements.

  7. When the sales invoice lines are completed, choose the Post and Send action.

The Post and Send Confirmation dialog box displays the customer's preferred method of receiving documents. You can change the sending method by choosing the lookup button for the Send Document to field. For more information, see How to: Set Up Document Sending Profiles.

The related item and customer ledger entries are now created in your system, and the sales invoice is output as a PDF document. The sales invoice is removed from the list of sales invoices and replaced with a new document in the list of posted sales invoices.

See Also

Sales
Setting Up Sales
Inventory
How to: Send Documents by Email
Bulk Invoicing from Microsoft Bookings in Dynamics 365 Business edition
Working with Dynamics 365