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Invoice text example for Finance

listen so today we will discuss about pre-text invoices here the free text invoice is nothing but you see in accounts payable whenever you receive any invoice from the vendor will update those records and details in invoices but here in accounts receivable we instead of invoice general will use it as a pretext invoice [Music] so uh to create any uh invoice let's say if you have uh sold products to any of your customers or if you have given some services to your customers you will have to generate one uh invoice right and for that since it is in a revenue for us we will have to post a journal entry like similar to let's say if you are if you have entered some [Music] if you have rendered some services too tcs you either will give it as a tcs or ar as a summary account it's a revenue for us right uh let's say some ide training is going we will create multiple uh multiple multiple revenue accounts let's say priority we have created one account so this should be the general entry so in order to create a journal entry for this one we will have to update all the details in free text invoices here so let me just quickly create one example [Music] in accounts level it will be invoice journal and in accounts receivable we'll call it as a free text devices [Music] and even in accounts receivable also for sales order we need not to create any invoice separately so by default as per as per the process uh that's a different this is for the non pure non non-products related services like for service related or any uh anything you can create a pretext invoice so let me quickly create an echo so the navigation accounts receivable under invoices we have all three text invoices free text invoices open customer uh and also we have something called as a recurring invoices uh that will discuss once we create this free text invoices here so click on all free text invoices [Music] [Music] okay so before creating all okay uh i'll explain just click on new and then we'll select the customer account let's say let me select this tcs customer [Music] okay and these fields are not mandatory if we have we can update all the details here like terms of payment method of payment and as for the journal entry we are supposed to give revenue account as a credit right so this is a main account that is revenue id services or whichever if you have any other revenue code you can give it over there so under invoice lines if you have multiple revenue accounts or if you wanted to split this revenue to multiple lines you can add click on the add line or else in our example only one revenue account we have it that is revenue id code so let's see if there is any other main account [Music] [Music] so we have one account that is already created revenue on account we'll use this [Music] now we have multiple regulations one second one second [Music] [Music] [Music] [Music] so here we'll have to select the revenue account here so as for the journal entry tc second data or accounts receivable account data to revenue account right so we'll have to select the revenue account here so let me give it as a it services here description you can view it as an id services and quantity i have entered one and the unit price is thousand rupees so as you see quantity doesn't mean that it should be a physical quantity even for services also you can use the same fields like if you have you know given for some five days or ten days or daily basis if you're charging you can just uh measure as per your requirement [Music] unit price is also it is not uh i mean it doesn't mean that it is related only for the products it is a general column that is funded and unit price you can use it for services also so here uh let me uh assume that for i we have provided for one day that is thousand rupees we are charging for the customer so in the description i will update it as an id services and the main account i've selected the revenue account so these are few fields also there is an option called distribute amounts uh if you click on the distribute amounts uh you can even uh you know you can distribute these amounts to multiple business units or any cost centers let's say let me show you if you click on the distribute amounts [Music] [Music] okay so here we have multiple options that is ledger account percentage amount currency let me give you an example here [Music] okay assume that you have two departments in your office that is one sales and marketing [Music] and one more is it department or let's say some finance department so this revenue whatever you are receiving right if you want to split it to sales and marketing and finance both like 50 50. so in our example let's take this as a thousand rupees and if you want to split this uh you know revenue to to these two departments then you can give it as a what will be the amount here right so if you want to achieve this uh journal entry i mean it won't be packed any journal entry it will just split the amount here but total it will go to the revenue but for our identification purpose whenever you pull report of the sales and marketing rate you can see this find it separately but if you pull revenue report you can you can still see the thousand rupees only so if you want to uh you know allocate or distribute this revenue to these two departments we have an option called split also you can decide the percentage what percentage if you want to go like 50 or 75 25 anything so in our example we have considered it as an 50 percentage rate so let me give it as a 50. also here business unit what is the business unit that you i'm looking for or else department sales and marketing let me sell the sales and marketing again under sales and marketing if you have any uh cost centers like trade shows marketing camp and maybe uh because of marketing campaign we have received this uh you know revenue we can you can allocate to that one and products if you have anything you can it is not mandatory all these options are there and what about the next 50 percent we have to allocate it for finance department right so let me give it as a for finance finance yes [Music] again in fine also finance if you have uh we can see there are two procurement administration uh let's say if you want to give your administration you can select this administration now uh the amount has been the revenue has been distributed equally for two departments that is for uh finance and sales and marketing let's say if you give it has some 75 [Music] 25 so it will take ingly 75.25 or anything as per your requirement you can click on and we have an option called distributed equally also if you click on distribute equally by default it will pick up 50 50 for this one and you click you can click on save in the distributed buy fields we have a there's a drop down here you can either go by percentage quantity or anything so if you want to go by amount you can click on the amount here or else if you can even click on the percentage here so based on the requirement if you want to split it as per the quantity or you can even select the quantity also now click on save and if you want to add one more line let's say apart from id services if you have given some training also then you can add one more line and you can if there is a separate main account that is revenue account for training services you can give that one or any other services multiple lines you can add and for all the lines you can even distribute them all as i mentioned here the revenue if you pull the report off this revenue account you can still see only thousand rupees but whenever you want to uh like it drill down transactions like how much revenue has been generated for sales and marketing finance then you can pull a separate report using the financial dimension sets that is for sales marketing finance there you can see this 500 [Music] also if there is any attachment like if you have given some proof or you know a document received or anything then you can attach that one by clicking on the notes and document attachments even here also invoice text you can mention anything all the details are here reasons if you have any reason code you can mention the reason code here like good will please enter the comment right open it if it is something related to foreign trade you can enter the financial dimensions we have just given right uh that is for finance and my sales and marketing even here also you can mention same thing department sales and marketing finance even here if you mention here it will directly you cannot this is not uh meant for splitting the remaining amount it will go only for one department you don't you do not see whatever here we have we have given 50 50 right for two departments but here you have only one option either only one department you can select or one call center one business unit you can select but since we have already given uh in the distribute amounts it is not necessary for you to give here in the financial advantage if you are giving only for one business unit then instead of split you can give it here [Music] so uh since we have entered almost all the details here now we will try to click on the post here and there's one more option one time customer if it if it is a one time customer you can click on this one and here ensure that under posting enable this option as an is by default it will be yes only but check once again because it will uh once it is enabled as then only you can you should be able to post the journal entry and the credit limit type uh let us keep it as a nun because we haven't given any credit limit for this customer right you can give it as a none so that irrespective of what the credit it will allow you to post any of the invoices and this is something related to print if you want you can enable this option to this also if you want to uh make this revenue let's say if you are giving these revenue services uh it's a recurring services like every month or weekly once or daily basis if you want to generate this invoice instead of doing it manually we have an option called recurrence here if you click on the recurrence you can select the start date start time [Music] like monthly basis you can select the in date here let's say from august 1st to 2 you wanted to generate till 2023 august 1st reference pattern it is asking like if you want to go for monthly ones you can select this monthly once repeat a specific day since you have selected months right uh we'll give it as a 30 days here that means for every 30 days here even like let's say in monthly if you want to generate two invoices then you can give it as a 15 year so that every 15 days that means in a month you can generate two invoices or if there is a specific weekday uh like if it falls you see if you give it as a 30 irrespective of weekday or weekend it will generate an invoice but if you want to generate it only on the weekdays if you want to generate it only on the weekdays you can select this option like first monday off every month or first or tuesday every month we have multiple options such here so in in this example let me let me not give it as an any recurrence here click on cancel [Music] now click on okay [Music] hello [Music] let me see what is the error no posting definition exists for the transaction type [Music] [Music] let me see what is the error here in general ledger we have a posting definitions [Music] yes as expected that is the reason let's see [Music] [Music] [Music] [Music] [Music] accounting rules to use posting definitions is we have given and we have enabled this option let me close this one okay [Music] i will try to post it here [Music] [Music] [Music] yes now it is posted so ensure that in general ads are parameters uh if you give this option as a posting definitions uh you will have to create some posting definitions even that also we have somewhere which should be here yes under posting setup you have a posting definitions uh for the timing you just flag this off to now now we'll quickly go to the yes now we the pre-text invoice has been posted but as per the general we are supposed to see the general interest now click on the invoice under under what uh accounting you can see the journal entry that is click on view accounting yes customer balance is nothing but the accounts receivable because the posting type is may be given it as a customer balance and since it is a revenue right so that's the reason revenue has been splitted to uh two different departments that is business units one is for sales and marketing and this is for finance one so if you want to see the watcher that also will see it should be let me click on the invoice journal here yes so this is the invoice here so invoice number by default it has been created but you can even change the format also in accounts receivable parameters under number sequences you can go for the inverse and you can create a new number sequence over there and let me see the watcher here yeah so this is a watcher accounts receivable account data to a revenue account and the posting type is customer balance and customer revenue because in customer posting profile we have given the summary account as an accounts receivable so let me quickly show you that also once so it will be same similar to accounts payable hosting profiles here under setup we have a customer posting profiles here we can create one two month posting profiles one is for general and uh prepayment for general let me select all this for all the customers instead of if we similarly we have options like table if you want to give a separate revenue account for each customer you can give that one or even for group also let me not do that so here uh already we have given somebody a summary account that is accounts result that's the reason in the journal entry we took it as a accounts review [Music] so anyway we will try to create a separate uh posting profile i mean supply journal entries for prepayment related examples [Music] yeah so this is a free text invoice and if you want to reverse any of these transactions we have an option under reverse transaction you can give the name or it if you want to give any reason comment you can give it over here else it is not trouble if you click on the reverse this entry will get reversed [Music] you can even see view sub-ledger journal also so submit that journal is nothing but the posting type under which hosting type it has to do for [Music] so you can even see the view distributions same whatever we have given right distributed that can be seen over here and if there are any charges you can even add those charges i mean initially not here while posting the invoice itself we have to click on the charges but since we have not given any charges it is not showing anything [Music] so if you are clear with this uh pre-text invoices will go for the recurring invoices [Music] so for this recurring invoices first we will have to create templates let's say on every month you are receiving a rent income from one of your customer regularly on the same date same time is everything like same amount also let's say for next one year you have entered an agreement or uh any not only rent if you're providing any other services or if you want to receive any product any amount from one such customer you can create multiple such recurring services invoice templates so the navigation would be accounts receivable under invoices we have a separate option called recurring invoices first we'll have to create a templates that is free text invoice templates and then we'll have to generate and then we'll have to click on the post so these are the step by step stop us will have to create a free text invoice templates here now click on pre-text invoices here already we have four such templates like for labor let's say if you're not receiving if you're providing some labor services to your customers every month if you want to receive some fixed amount or some on date wise then you can give this amount so we'll try to create a new template let's say if you are providing some iit services and every month you are you have to receive some amount the recipient you can give the recipient like this an employee like who which employee is responsible for this one if there is an employee you can specify that employee and the posting profile will give it as a general posting profile and if you want to specify any terms of payment metro payment all these things you can function over here even if it is if there is any uh financial dimension business unit cost that you can apply over it and the revenue account for which revenue account you wanted to uh you know link this particular template let's see how many revenue accounts we have we have only one revenue account we'll give it as a revenue account here [Music] in the 80 services we'll give it as a id which is in the description let's say every month you wanted to receive some 5000 rupees from pcs [Music] we'll give it as a one description so this format will be same like a pre-text invoice only [Music] but it will be a template here and if there are any other details over here you can click on this one [Music] also we have an option called copy uh if you click on the copy you can create a duplicate one like uh like multiple templates you can create here [Music] and if you want to uh add any charges you can add the charges also like any other handling or anything ascend customers see this is important because we have to ascend customers right here you have already created the template but if you assign the customer then only you can see the ascend cus this assigned customers like uh what all customers you were supposed to receive this revenue from the only those customers will be shown here so we have just created the it services as a template right now we will have to assign this template to tcs customer so to assign this tcs customer as a this template so we'll quickly go to the all customers [Music] so let's see for tcs you wanted to assign this this one right the template just select this customer and click on invoice [Music] under setup under invoice in the in this action pan under invoice we have a setup under setup click on the recurring invoices yeah so for this customer i have already allocated i mean i have already linked two templates that is for rent and labor now we will try to give the separate one that is id services we have two options one is yes or no like you want you want to make it as an active yes and the template what is the template we are supposed to select it services let me select that one and the billing started let me give it as a jan first from jan first only we have started so let me select it as a jan post and if you have entered an agreement for let's say for next one year you can give it the billing end date as a next one year by end date what is the next state jan 1st 2023 if you do not want to uh if it is if there is no end date you can click enable this option and uh also we have two options like in is one is billing billing and date and one more is maximum cumulative amount uh let's say if you have entered any agreement with this customer uh for maximum one lakh in a year uh irrespective of see they while generating the invoice then you can even edit the amount let's say for example for one year if you have entered a maximum amount of one lakh that you will be receiving maximum one lakh from this customer [Music] so uh on every monthly monthly basis if you are charging some ten thousand rupees in the invoice for ten months itself uh the one lakh will be completed right then recurring billing will stop so whichever is earlier like either billing end date should be earlier or the maximum cumulative amount should be earlier because it like monthly monthly sometimes it is not necessary that you know uh in case if you're giving some extra services to them or extra for any products or anything you might charge fifteen thousand twenty thousand or there are chances even within two three months only you can complete this one lap target right so in that case the recurring will not recurring will stop uh for the next three months itself so whichever is earlier either billing ended should be earlier or maximum cumulative amount which it will take and we have one more option that is free text invoice template so we have created one template right if you want to create an invoice ask for that one only you can select this as a pre-text invoice template and the recurrence how frequently you wanted to generate so as i mentioned uh in case if you're giving some weekly daily or yearly you can create that one let's say monthly basis i want to generate this one and what is the frequency and this is a pattern like a monthly on like within how many days like monthly uh you know every month if you want to generate then you can give it as a one year or if you want to generate this as a quarterly once uh then you can give it as a four year or like two months once three months once you can you ask for the requirement let me give it as a monthly ones here [Music] so these fields if you are clear then we'll click on save so we have entered an agreement for one year that will be providing id services to this customer also every month will be sending an invoice to this customer now let me click on save so first step is we have to create a template that is done and we'll go to the next step that is we'll have to generate a recurring invoice now click on recurring generate recurring invoices [Music] uh see we have entered an agreement uh from january first on the right from january past 2022. so if you want to generate an invoice for the month of january you can select the month of january first generation date you can gen you can give today's date itself that's not a problem and the template you are providing some id services you are so even though you haven't allocated all these services like do you i mean uh like i t labor and now we are generating for id services right you can select the it services click on select and the records to include since we have given this you know recurring invoice template only for one customer that's the reason it is by default it is showing only one customer uh let's say if you are giving for multiple customers all those customers will be shown under the filter you will have to select here click on the filter custom this option will be by default you can select multiple customers here like if you click on this uh drop down there is a plus symbol volume you can select the customers like multiple customers you can add select by clicking on add here [Music] and the recurrence will still work for the same like we have just discussed it so by default even the timings also will be there so the inverse will get generated over there now let me click on okay [Music] reckoning invoice has been successfully generated [Music] so now you have generated the recurring invoice for the month of january 2020 so once you generate the recurring invoice you will have to click on the uh post recurring invoices after you click on the post recurring invoices [Music] what is the invoice date that is uh january 1st right [Music] so this is the invoice that we have just generated [Music] even though we have generated it for january first the reason why it is showing as a till date because uh whatever the invoices that because we are supposed to generate these invoices till date right so if you select the previous date then till now if there are any pendings all those months will be calculated here only for one month if you want to select even the generation date also you have to give it in the january first itself we have given the generation date as a today's date that's the reason invoice date to till generation date if there are any gaps all those invoices will be picked up here so till from january 2 till last eight invoices got generated here now you can select you can click on the post here because if you want you can click on the valid and then you can click on the post [Music] [Music] okay so it has it has been added to batch queue so back and it will take some time to post it over there so once it is posted you can see here the posted status from node 2 it will change to yes yeah so this is about the invoice templates first step is to create invoice templates and then generate and then post recurring invoices and all free text invoices you can see here [Music] there are a lot of invoices are there so all these will get posted if it is in them since they're in batch queue it will get posted so once you once the invoice gets posted you can click on the invoice and you can see the same process under invoice you can see that under accounting you can see the journal entry so we are done with the free text invoice templates and then we'll go for the sales order and then general entries [Music] [Music] 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