AR Invoice Creation - Order Invoicing

This section provides a brief description of the the Order Completion process and explains how accounts receivable invoices are created by the process.  The Order Invoicing programs and procedures are described in more detail in the documentation for the Order Fulfillment system.

The Order Invoicing program is used to complete customer sales orders and loaner orders for items that are being shipped out of one of your warehouse locations (sales order types are discussed in detail in the documentation for the Order Processing System).  The Order Invoicing process will typically generate the bulk of the accounts receivable invoices for customers who primarily ship from their own warehouse locations.

The Order Invoicing program will only allow you to process sales or loaner orders that have inventory allocated to them and it will only allow you to process orders that are not on hold (for any reason).  A sales or shipper type order MUST be entered into the system already for this process to be used.

The Order Invoicing process is typically performed in the warehouse, and it consists of the following steps.

Printing a Picklist for the order

The Picklist Management program will automatically display the orders that are available to be shipped from each warehouse location.  The program can be used to display either sales orders or loaner orders.  

The Picklist Management program will only display the orders that have inventory allocated to them, and it will only display orders that are not on hold.  The program also restricts the orders that can be processed based on the schedule dates in the order lines, and based on the partial flag in each order (if the order is a no partial shipment, the system will only allow it to be printed when all items to be shipped are available.

Picking the Items

Each Picklist that is produced lists the items to be shipped out for each order and the inventory bin or bins that each item should be pulled from.  Once a picklist is produced, the operators in the warehouse physically pull the items for each order and move the items to the Order Completion stations so the items can be packed and shipped out.  The Picklist document will output numerous types of comment and other information as required for warehouse processing, and it will also list the items to be picked in bin sequence to reduce picking time.

Completing the Order

Once the items for the order have been picked, the operators in the warehouse load the sales order and ticket number from the pick ticket into the Order Invoicing program.  Once the order is loaded, the operators verify or change the quantities being shipped out (based on what was actually picked), and they enter any required serial number or other detail required by the system. 

The shipping information (shipping charges, and any tracking information ) for each sales order is also specified during the order completion process.  This can be done manually, or the manifest information can be automatically created by third party shipping software.

The shipping charges for each sales order can be based on a fixed shipping amount entered for the order which will automatically be used on the first shipment for the order.  The shipping charges for each shipment can also be manually entered or calculated by a third party automated shipping system. The cost of each shipment can also be entered manually  or automatically based on the shipping method being used.

Shipping charges are not supported for Loaner type orders since they do not have a value (they are used for no-charge situations).

Once all of the required information has been input into the Order Invoicing program and the transaction is saved, the system creates the appropriate invoice document, and it posts the document to the general ledger (if sales are being posted on-line which is the default behavior). The customer AR and Open Order Balances, the Inventory and Bin quantities, and the other information affected by the transaction are also updated during save.

A packing list (invoice copy with no prices) or an accounting invoice (with price information) is also produced and typically attached to the outbound shipment.

The invoices that is created by the Order Invoicing process can be printed out and viewed  immediately after they have been created.  Invoices which are not shipper (or no charge) invoices can also be paid or adjusted as soon as they have been saved.

More:

AR Invoice Creation - Vendor Shipment Processing