Knowledge Center

Advance invoicing

Advance invoicing is used to create a Sales Invoice (CIN) based on a Sales Order (COA), before the goods is shipped to the customer. This could be done when there is an agreement with the customer that parts of the COA will be invoiced before the goods is shipped, depending on events instead of on delivery of goods. This could be agreements on specific dates, or based on a specific process that is completed. In RamBase, advance invoices could be produced from an Advance Invoice Plan (CIP) that is created from the COA.

When advance invoicing is done, delivery dates for the goods will be scheduled on the COA items, as normal. The Shipping Advice (CSA) that is used to ship the goods to the customer will also be created as normal, but the final CIN created from the CSA will be adjusted so that the advance invoices will be credited. This means that the final CIN created from the CSA will be adjusted with the totals that is invoiced from the invoice plan. Each CIN item from the advance invoices will appear on the final CIN, but with a credit amount. The final CIN will then be for the total of the COA, adjusted by the credit amount from the advance invoices.

To be able to produce advance invoices before goods is shipped from a COA, an invoice plan has to be created from the COA. An invoice plan can be created from all items on the COA, but it is also possible to create an invoice plan from some selected items. A COA item can be scheduled to create one or more advance invoices from the invoice plan, based on a fixed amount or a percentage of the amount on the COA item. The invoice plan consists of one or more Advance Invoice Plan Element (CIP) documents, and all CIP documents created from the same COA will be the invoice plan for that COA.

Advance invoices created from the invoice plans will have 100% gross margin and there will be no cost of goods. The final CIN created from the CSA will have the real cost from the goods that are shipped, while the items made to credit advance invoices will have no cost of goods.

Both the CIN created from the invoice plan and the CIN created from the CSA will be posted to Account Receivables in General Ledger. The final CIN for the CSA will be posted to a sales account, while the advance invoice will be posted to a settlement account that could be set up by the user.

Data flow
  1. A Sales Order (COA) is created.

  2. Since there can be quite an extensive period of time between ordering and delivering goods on manufacturing orders, RamBase has a possibility to create Advance Invoice Plans (CIP) from a COA. When there are created Advance Invoice Plans from a COA, the COA is flagged as CIPORDER. There is no calculation of VAT on a Sales Invoice (CIN) made from a CIP document.

  3. A CIN is produced from each CIP document. This is done manually.

  4. Upon time of delivery, a Shipping Advice (CSA) is issued.

  5. The final CIN is created based on the CSA issued upon time of delivery. When the CIN is made from a COA marked with CIPORDER, there is a settlement between the final CIN and the CINs made from the CIP documents. The final CIN always holds the VAT outgoing tax for the total COA amount.

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Create an Advance Invoice Plan

In RamBase, a Sales Invoice (CIN) for payment in advance is created in an application called Advance Invoice Plans (CIP), and the CIN is marked as a CIPINVOICE. A forwarded Sales Order (COA), status greater then 1, forms the basis for an Advance Invoice Plan creation.

  1. To open the Sales Order (COA) application, find Sales in the RamBase menu and then Order Handling. Click Sales orders to enter the COA application.

  2. Highlight the specific COA.

  3. In the context menu, choose the Advance invoice plan.. option to enter the Advance Invoice Plan for Sales Order window.

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  4. Click on the Add invoice plan element icon in the lower left corner to open the Advance Invoice Plan Element popup.

  5. Use the calender icon to set the invoice date in the Invoice Date field.

  6. The Intern field can be used to set an internal message about the Advance Invoice Plan (CIP)

  7. The Remark field can be used to set a message that will be visible for the customer on the Sales Invoice (CIN).

  8. Click on the Select sales order items for invoice plan icon.

  9. In the popup, select the item(s) for the Advance Invoice Plan Element in the Select column.

  10. A specific amount, or a percentage share of each COA item can be transferred to the invoice plan. Alter the Amount,XXX or Pct field according to the wanted pre-invoiced amount in the This invoice plan element column.

  11. Press ESC twice to go back to the Advance Invoice Plan for Sales Order window.

  12. Click on the Register Invoice Plan Element icon on each line to register the CIP (Status 4) and make it ready to be invoiced.

  13. The CIP document can be edited as long as no invoice has been produced from this document.

  14. Repeat step 4-12 for as many Advance Invoice Plan Element as necessary.

Create a Sales Invoice (CIN) for the Advance Invoice Plan (CIP)
  1. Start from a registered Advance Invoice Plan document (CIP) set to status 4.

  2. Click on the Create invoice for invoice plan element icon in the Invoice column.

  3. A Sales Invoice (CIN), flagged with Invoice Plan is created. It is still editable (status 1).

  4. To inspect the invoice, click on the Sales Invoice link (CIN/xxxxxx) in the Invoice column.

  5. Press F12 and choose the option Register Sales Invoice to issue the invoice.

  6. Based on the system setup you might need to select the recipient(s) in the Document Send Alternatives popup.

  7. Click the Forward button.

The invoice is issued (Status 4), and the related CIP document will be closed (Status 9).

Follow up on the Advance Invoice Plans

The Advance Invoice Plan (CIP) application is used the follow up on the Advance Invoice Plans. To open the Advance Invoice Plan (CIP) application, find Finance in the RamBase menu and then Recievables. Click Advance Invoice Plans to enter the CIP application.

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It is possible to filter the COA documents by using the COA number field, by clicking the CUS Customer icon or by using the radio buttons.

Enter the Advance Invoice Plan (CIP) for a specific Sales Order (COA)
  1. To open the Advance Invoice Plan (CIP) application, find Finance in the RamBase menu and then Recievables. Click Advance Invoice Plans to enter the CIP application.

  2. Filter by using the COA number field, filter by customer or use the radio buttons to narrow the search.

  3. Highlight the specific COA document and press ENTER.

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The Invoice Plan Key Figuers area
  • Sales Order : Total ( excl. Freight & Fee ) - The total amount of the Sales Order (COA) except freight and other fees.

  • Sales Order : Backlog - The amount of the COA not delivered.

  • Invoice Plan - The amount and percent of the COA planned in the Advance Invoice Plan (CIP).

  • Invoiced - The amount and percent of the COA that has been invoiced.

Edit a CIP document

The CIP document can be edited as long as no Sales Invoice (CIN) has been registered (CIN in status 4 or greater) from this document.

If an CIN is created (status 1) for the CIP document, you can discard the CIN to edit the document.

A CIP document in status 4 is ready for billing.

The final Sales Invoice

When advance invoicing is done, delivery dates for the goods will be scheduled on the Sales Order (COA) items, as normal. The Shipping Advice (CSA) that is used to ship the goods to the customer will also be created as normal, but there is a settlement between the final Sales Invoice (CIN) and the CINs made from the Advance Invoice Plan (CIP) documents. This means that the final CIN created from the CSA will be adjusted with the totals that is invoiced from the invoice plan. Each CIN item from the advance invoices will appear on the final CIN, but with a credit amount. The final CIN will then be for the total of the COA, adjusted by the credit amount from the advance invoices.

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