What Happens When Sales Invoices Are Printed

Data files are automatically updated whenever you do most anything in SAFE EE, so almost all information is up to date as soon as you enter it into the system. This is called Real Time Posting time posting. Information which is continuously updated includes:

When you click the [Print] button in the sales order browse and print an invoice you are actually performing several accounting functions simultaneously:

• The Month To Date and Year To Date sales totals for Customer, Employee, Product type, Product ID, and Vendor files are updated. The Month to Date and Year To Date totals for each file represent Total Sales for their respective periods.

• Invoices and credits are applied to their respective accounts and payments matched to outstanding invoices. Invoices are marked as Paid In Full when the payment received zeros out the balance due. Posted credits and invoices are then erased from Daily Transactions File.

• Month To Date and Year To Date Purchases are updated for each vendor and form for non-inventoried items.

• Inventory levels for distributor and customer owned Products are updated according the rules in How Inventory Levels Are Updated.

• A back order is automatically created for any and all line items where there was an Ordered Quantity but no Shipped Quantity. Simple Accounting does this by duplicating the sales order for only the line items which did not ship. (In other words, after printing an invoice with backordered items, you will see two transactions with the same Sales Order ID. The first marked as Invoiced, the second, containing only the unshipped items, marked as Open. This feature allows you to bill line items on a sales order individually as the vendor invoices come in. Again, you need not wait for all items to ship in order to invoice your customer. SAFE handles it automatically!

Sales of line items from Sales Orders are posted directly into the A/P Vendor Bill browse. These A/P entries are also posted directly to the G/L. Entries are posted in A/P according to the following rules:

• The Sales Order Line Item must be for a Product Type which is marked ‘POST TO A/P’.

• The Product may not be Distributor Owned.

• You must have the POST TO A/P option (also set in Setup Global Options.)

• One A/P Line Item is created for every Sales Order Line Item with a Shipped Quantity, an Extended Cost and a Vendor ID. The Vendor ID may not be your Master Customer/Vendor ID (set in Setup Global Options).

• Line Items from the same Sales Order are combined together onto a single Vendor Bill if the Vendor and Vendor Invoice are entered the same for each Line Item. A separate line item is added to any Vendor Bill if you entered any amount in the FREIGHT COST field of the sales order line item. The G/L account is taken from the FREIGHT EXPENSE ACCOUNT field on the sales order line item.

• A separate transaction is generated in the A/P Vendor Bill browse if you entered an amount in the ART COST field of any line item. As you might expect, the ART VENDOR from the sales order is the vendor ID, while all other information is taken from the sales order (JOB #, TRANSACTION ID, etc.) The G/L account of the expense is the ART CHARGES ACCOUNT you entered in Setup Global Options.

• Each entry posted to A/P cross references the TRANSACTION ID, ORDER ID, and VENDOR PURCHASE ORDER # fields into the new vendor invoice.

• Freight or Artwork expenses are not created as DISCOUNTABLE on A/P Line Items. Other A/P Line Items are discountable if the Product Type is marked A/P DISCOUNTABLE.

TWO WAY POSTING

Once the order has been posted to A/P, you may not edit costs or the vendor information from within the sales order. However, you can edit these costs by editing the A/P Bill directly. Any changes made to the A/P Bill will automatically update the originating sales order. This ensures that the profitability of each sales invoice is always correct.

 You can disable this two-way posting using SASE under the Custom Settings|A/P Options tab.

Use caution when making these corrections. You would probably want to credit and rebill the customer invoice if commission has already been paid on this order.

G/L Posting

When an invoice is printed, each invoice generates the following general ledger entries. There is one entry for each invoice:

• A/R     A debit for the invoice total. The account is set up in Setup Global Options.

• CASH    A debit if cash is received. The account is set up in Setup Global Options.

• FREIGHT    A credit for the freight revenue. The account is set up in Setup Global Options.

• SALES TAX  A credit to the Sales Tax Payable account for each sales tax entity set up for the Sales Tax ID.

• ART PRICE   A credit to sales if art work was charged to the customer in the header of the order. The account is set up in Setup Global Options.

• And one credit entry for each Line Item on the invoice indicating revenue.

Forms Management Posting

When invoices are printed, items are posted into the Product History Audit Trail. A complete description of the rules for usage and inventory updates are given in the topics How Inventory Is Updated and How Usage Is Calculated.