Small and medium-sized businesses that have separate accounting and inventory management systems can do their invoicing on either side. If your company’s accounting and inventory are somewhat decoupled, you can do invoicing entirely using your accounting software. For many companies, your accounting and inventory are closely linked. After all, your current stock is your business’s biggest asset. When your accounting and merchandise are intertwined, you can create invoices from within your inventory software and then export or sync them to the accounting software.
In Finale Inventory, you can create invoices from a sales order directly or from shipments associated with an order. If your invoices are based on shipments, then you may have multiple invoices for a single order, one per shipment. Creating invoices is one part of Finale’s order management features. You can experience the software’s complete range of capabilities when you sign up for a free trial of Finale Inventory.
What Is Inventory Invoicing?
An invoice is a document that records a transaction between two parties. When you generate an invoice for a customer, you include your company information, the invoice number and the date. An invoice will also display an itemized list of the purchases the customer has ordered. This list can be for services, such as a consultant or accounting services. As a manufacturing or retail business, your invoices will be for goods sold. You’ll list the items the customer ordered, the quantities and the prices. At the bottom of the invoice, you’ll input any terms of payment.
An invoice serves as a bill to the customer and a receipt of the transaction. First, you send it to the customer, creating an open invoice. Once the customer has paid the invoice, the document will be marked “paid.” The bill then serves as evidence of the completed transaction. Invoices can be used in your accounting records and for tax purposes.
Invoices also serve as an easy way for you to update your inventory after you make a sale. Your client can likewise use the invoice to verify the quantities and items received. Then, the invoice allows them to update their own inventory.
Many small-to-mid-sized companies use a text document or spreadsheet to generate invoices. With this method, you have to input every number manually. The process is time-consuming and leaves more room for error. Mistakes in invoicing can delay payments and make your inventory numbers inaccurate. Many businesses run their invoices through their accounting software. Most accounting software lets you generate and populate invoices, with fewer manual entry required.
The advantage of using your inventory management system to generate invoices is that your inventory updates automatically. Billing and inventory management software gives you an accurate count of your current stock. The technology also helps you fulfill orders more efficiently. If a customer makes an order for a product that is out of stock, this information will transfer over to your invoice. You can then fill a partial order, shipping over the available inventory. When the rest of the request comes back in stock, you can fulfill the rest of the order with a new invoice.
How Does Invoicing Stock Control Software Work?
Invoices are a critical part of your inventory management process. Integrating invoice inventory accounting software lets you keep close tabs on your inventory. All you have to do is generate your customers’ invoices, and your current stock updates accordingly.
Sign up for a free trial of Finale Inventory to experience the ease and speed that inventory invoicing software provides, including:
- Input stock: If you’re just getting started with your invoicing and stock control software, the first step will be to input your initial inventory. You’ll have to conduct inventory auditing to determine the status of your current stock. You’ll assign each unique item an SKU reference number and assign it a price for billing purposes.
- Add purchases: Once you add the initial stock, you can update it at any time by adding acquisitions to your account. An easy way to record accurate numbers from your purchases is to look at the invoice you received. Your suppliers will give you an invoice with quantities for each of the items you ordered. You can input these quantities into your inventory management software to have your available stock update.
- Create sales orders and shipments: Whenever you make a sale, all you have to do is create a sales order for the client. You can choose to generate an invoice directly from the sales order or make an invoice after you create a shipment.
- Generate invoices: After you create a sales order or shipment, the invoice will generate automatically. You can find it in the “invoice” tab of your software. Once you confirm the invoice, you can create a shipment. The quantity you include in the invoice will deduct from your available stock.
Invoicing Video Demonstration
See how simple it is to create sales orders, shipments and invoices with Finale Inventory.
Hi. This is Will Harvey of Finale Inventory. I’m gonna give a quick demonstration here of creating invoices for sales orders or for shipments of the sales order.
Invoices for orders, of course, are gonna begin with a sales order. So I’m gonna begin on this homepage by clicking “New sale” to create a new sale order. The blue button on the left here just picks a default order ID for this sale.
Okay. You may have seen this in another video, this is a homepage here for the sales order that I’m creating. I’m gonna pick my customer, and then I’m ready to go, picking my items. I’m just gonna type in blueberry pie here to add a blueberry pie to my order, and I’m gonna secondly add a boysenberry pie to my order. Notice the pie here is showing up in red. That’s because I don’t have any boysenberry pie in stock here. I can still make the order, but I’m gonna have difficulty shipping it.
Okay. So I’ve created the sales order. Now, if I wanted to generate an invoice directly from the sales order, I can do that. I just click on the green button here, “Add invoice to sale.” We flip to a new tab, which is now an invoice based on the sales order that we just constructed. You’ll recognize the blueberry pie and the boysenberry dessert here for $10.50 and $9.75. Never mind the fact that we can’t actually ship the boysenberry pie because we don’t have it in stock. We created the invoice. If I went to the Actions menu, “Print invoice,” I get a nice PDF that I could send to my customer.
Well, some kinds of companies are invoicing based on the orders. Other kinds of companies create invoices based on the shipments when they actually ship something out to the customer. So we can do that too. Let’s say that we went to ship this order with a plan to create an invoice after we shipped it. To ship the order, I click on the “Shipments” tab. I update the shipment to match the order. I run into the problem that down here in red, it’s pointing out that I don’t actually have a pie to ship to this customer. So I’m gonna make this a partial shipment and adjust it by removing the boysenberry pie, so we only have a blueberry pie. Make sense? Okay. Now, I’ll ship this shipment picking today as the ship date.
Okay. Having created this shipment based on the sales order but only for the items I had in stock, I can create an invoice based only on this shipment as opposed to being based on the whole sales order. Scrolling over here to the Actions menu again, “Add invoice to shipment,” creates an invoice. Notice though, this invoice, although it looks a lot like the sales order, is crucially missing a line. It’s missing the boysenberry pie because we didn’t ship it. So this is invoicing based on this shipment, not based on the sales order. I can go to the Actions menu, “Print invoice,” and I get something to send to the customer.
In this scenario, I would probably create another shipment when my back order of blueberry dessert was supplied to me by my baker or my supplier. And then, after creating that second shipment, I would create another invoice for the pie that is represented by that shipment. The process that I would do there is just the same process that I did. You just saw me invoicing for the order and an invoice for a shipment, so I’m sure on your own, you’d be able to create an invoice for the second shipment as well.
Setting up Taxes for Sales Orders and Invoices
Finale Inventory makes it fast and easy to generate taxes for sales orders and invoices, no matter where you ship to. You can set custom state tax, federal tax and more.
Hi. This is Will Harvey of Finale Inventory. I’m here to give you a quick demonstration here of creating taxes and applying them to invoices or sales orders. In Finale Inventory, I think you’ll remember from previous videos that I can create a new sale with this blue link. Or, just underneath it, I can look at my sales. Let’s start out here by looking at an existing sale.
Here’s the sale that I recently set up that has just one item — blueberry pie, sold for $10.50. And if you look down underneath the items in this order, it has a sales tax, excuse me, it has a state tax of $0.53, totaling up to $11.03. If I looked at the invoice of this, same thing — $0.53, $11.03.
Let’s say, though, that we had orders from a different state, or that we were setting this up to have a different set of taxes. Let me show you where you would go to do that and how it applies to an invoice or a sales order. From the homepage, “Application Settings” here in the lower left is pretty much where you can configure the application.
Invoices have to do with selling, so I’m gonna click on the selling link. And, right here on top are the tax items that we have set up. We have a few set up already: accounting sales tax, city sales tax, state sales tax, state tax. Let me just add another tax, and then we’ll create an invoice sales order for this new tax that we’re adding. We’ll call this tax the “visitor’s tax,” and we’ll make it a 12% tax. I’m also going to set it up so that this visitor’s tax is our default tax that is applied for new sales orders, so when I make a sales order, it’s by default going to have this as the tax.
Going back to home, and now back to this “new sale” link. To create a new sale, I just choose my own order ID or pick a new one. I’ll just pick a new one by default and select my customer, enter my item — blueberry pie. Again, it’s $10.50, just like it was before. But, now you see below the $10.50, below the total here, we’re getting a visitor’s tax of $1.26, which was our 12%. So, the tax is being applied to the sales order.
If I created an invoice from the sales order, or if I made a shipment and then created an invoice from the shipment, the invoice is going to have the same tax. I’ll show you that here by clicking on the green button to add an invoice for the sales order. Here’s the invoice — looks pretty much the same. If I printed it out into a PDF to send to my customer, it would look like this. The visitor’s tax is on the invoice — again, $1.26 would add up to be 12% of the price that was in the item — the total price that was in the items of the order.
That’s just about all there is to it to add taxes to sales orders and do invoices based on those sales orders or based on shipments.
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Simplify Inventory Invoicing With Finale Inventory
For a business that relies on an accurate count and value of its inventory, invoicing through your inventory management software is crucial. Finale Inventory’s sales invoicing and inventory software makes the entire process simple. By using Finale Inventory to create sales orders and bill customers, you can give your customers accurate information about the availability of their orders. You can know when you need to send a partial shipment while you restock. You can also get up-to-the-minute sales information that can help you get accurate demand projections.
If you’re looking for invoice, inventory and accounting software, Finale Inventory has the complete flexibility to customize our software to your needs. We offer the ability to integrate with Quickbooks Online or Quickbooks Desktop. We also have custom capabilities to integrate your system with any accounting software your company uses. So, whether you invoice clients with from the inventory or accounting side, you can be sure to have accurate information in all of your programs. Use these powerful integrations for effective invoice auditing and faster bookkeeping.
Learn more about the capabilities and fantastic features Finale Inventory has to offer your e-commerce business. See our cloud-based invoicing and inventory software in action by exploring the rest of our video tour. Ready to get started? Start your free 14-day trial or schedule a live demo today.