Sales Documents — Complete User Guide — Two Accounts Web

Comprehensive guide for managing sales quotes, sales orders, and sales invoices — from quotation through order fulfilment to invoicing and payment collection

Table of Contents

1. Overview
   • Document Lifecycle
   • Key Differences
2. Enabling the Tabs via Customize Menu
3. System Accounts
4. Field-by-Field Guide
   • Sales Invoice — Header Fields
   • Sales Invoice — Line Fields
   • Sales Order — Header Fields
   • Sales Order — Line Fields
   • Sales Quote — Header Fields
   • Sales Quote — Line Fields
5. Creating Documents
   • Sales Quote
   • Sales Order
   • Sales Invoice
   • Document View Actions
6. Settings Configuration
   • Footers
   • Email Templates
   • Recurring Sales Documents
   • Custom Fields
7. Accounting Impact
   • Sales Invoice GL Posting
   • Withholding Tax
   • Early Payment Discount
   • Late Payment Fees
   • Rounding
   • Cash Basis Accounting
8. Opening Balances
9. Reports
   • Sales Document Listings
   • Customer Summary
   • Cash Flow Statement
   • Tax Reports
   • Aged Receivables
10. Sample Data and Report Output
11. Accounting Regulation Compliance

1. Overview

The sales document family consists of three related document types that track the sales lifecycle from initial quotation through order commitment to invoicing and payment collection.

1.1 Document Lifecycle

Customer requests quote
        │
        ▼
  ┌─────────────┐
  │ Sales Quote │  Provide pricing to customer
  │             │  Optional: hide totals for price lists
  └──────┬──────┘
         │ Convert to Order
         ▼
  ┌─────────────┐
  │ Sales Order │  Customer commits to purchase
  │             │  Track delivery status, link to Delivery Notes
  └──────┬──────┘
         │ Convert to Invoice
         ▼
  ┌─────────────┐
  │ Sales       │  Financial recognition
  │ Invoice     │  Creates Accounts Receivable, revenue, tax
  └──────┬──────┘
         │ Receive Payment
         ▼
  ┌─────────────┐
  │ Receipt     │  Settle the receivable
  └─────────────┘

1.2 Key Differences

2. Enabling the Tabs via Customize Menu

All three sales document types are sub-tabs of the Customers tab. The Sales Invoices tab is enabled by default. To enable others:

1. First ensure Customers is visible in the navigation bar
2. Open Customize Menu
3. Find each of the following and toggle to Visible:
   • Sales Quotes — provide pricing to customers
   • Sales Orders — manage customer commitments and deliveries
   • Sales Invoices — record revenue and manage AR (enabled by default)
4. Click Save

Each tab is independent — you can enable only the documents you need. Additional settings become available under Settings once each tab is enabled:

• Sales Invoice Footers / Sales Order Footers / Sales Quote Footers
• Email Template for Sales Invoice / Sales Order / Sales Quote
• Recurring Sales Invoices / Recurring Sales Orders / Recurring Sales Quotes — under Settings > Recurring Transactions

3. System Accounts

Sales Invoices use the following accounts for GL posting:

These accounts are configured in Settings > Chart of Accounts.

Sales Orders and Sales Quotes do NOT post to the General Ledger — they are pre-financial documents with no accounting impact.

4. Field-by-Field Guide

4.1 Sales Invoice — Header Fields

4.2 Sales Invoice — Line Fields

4.3 Sales Order — Header Fields

4.4 Sales Order — Line Fields

4.5 Sales Quote — Header Fields

4.6 Sales Quote — Line Fields

Same as Sales Order lines — Item, Description, Quantity, Sales Unit Price, Discount, Tax Code.

5. Creating Documents

5.1 Sales Quote

1. Go to Sales Quotes > New Sales Quote
2. Set the Issue Date and Expiry Date (validity period)
3. Select the Customer
4. Add lines with items and quantities
5. Optionally check Hide Total Amount for price list quotes
6. Enable Rounding, Discount, or Withholding Tax as needed
7. Save

Copy to: From the Sales Quote view, click Copy to to create: Sales Order, Sales Invoice, Purchase Quote, Purchase Order, Purchase Invoice, Credit Note, Debit Note, Delivery Note, Goods Receipt, or Inventory Transfer. When creating from an Inventory Price List source, the system pre-populates lines from inventory items at default prices and sets Hide Total Amount to true.

5.2 Sales Order

1. Go to Sales Orders > New Sales Order or Copy to from a Sales Quote
2. Select the Customer
3. Add lines with items and quantities
4. Save

Once saved, the order appears in the Qty to Deliver report. When goods are dispatched, create a Delivery Note linked to this order. The delivery status updates to Partially Delivered or Delivered.

Copy to: From the Sales Order view, click Copy to to create: Sales Invoice, Sales Quote, Purchase Quote, Purchase Order, Purchase Invoice, Credit Note, Debit Note, Delivery Note, Goods Receipt, or Inventory Transfer.

5.3 Sales Invoice

1. Go to Sales Invoices > New Sales Invoice or Copy to from a Sales Order
2. Select the Customer
3. Set the Issue Date and Due Date
4. Link the Sales Order (optional)
5. Add lines with items and amounts
6. Configure Early Payment Discount or Late Payment Fees if applicable
7. Enable Withholding Tax if applicable
8. If the customer has a foreign currency, verify the Exchange Rate
9. Save

5.4 Document View Actions

All sales documents — Quotes, Orders, and Invoices — share common actions available at the top of each document view:

Copy to: From the Sales Invoice view, click Copy to to create: Sales Order, Sales Quote, Purchase Quote, Purchase Order, Purchase Invoice, Credit Note, Debit Note, Delivery Note, Goods Receipt, or Inventory Transfer. When copying to purchase-side documents, line prices are reset to default purchase unit prices. The recurring sales invoice option also appears under Copy to.

6. Settings Configuration

6.1 Footers

Navigate to Settings > [Document Type] Footers to create reusable footer content. Each document type has its own footer model with Name, Content (HTML/textarea), and Inactive fields.

6.2 Email Templates

Navigate to Settings > Email Templates for each document type to configure email subject and body for sending documents to customers. Each has its own singleton template model.

6.3 Recurring Sales Documents

Navigate to Settings > Recurring Transactions to configure periodic sales invoices, orders, and quotes. All three support Next Issue Date, Interval, Period Type, Month Day, Expiration settings, and Withholding Tax.

6.4 Custom Fields

Custom fields can be created with the appropriate Placement setting for each document type and their lines.

7. Accounting Impact

7.1 Sales Invoice GL Posting

For each line with an Item or Account:
    Dr  Accounts Receivable (Customer)           (line total, including tax)
        Cr  Revenue / Income Account                          (line amount excluding tax)
        Cr  Tax Payable (output VAT)                           (tax amount)

    If the item is an inventory item:
        Dr  Cost of Goods Sold                    (cost of item at weighted average)
            Cr  Inventory On Hand                               (cost of item)

Balancing entry:
    Dr  Accounts Receivable (total)              (sum of all line totals)
        Cr  (matching the debits/credits)

Note: The system uses reverseSign = true — positive line amounts on
a Sales Invoice create credit entries to revenue accounts.

7.2 Withholding Tax

When Withholding Tax is enabled:
    Dr  Withholding Tax Receivable                (withholding amount)
        Cr  Accounts Receivable                                  (withholding amount)

This records tax deducted by the customer that is recoverable from the tax authority.

7.3 Early Payment Discount

When Early Payment Discount is enabled on a Sales Invoice:

• The invoice view displays the discount amount and the "Balance due if paid by X date" message
• If the customer pays within the discount period, go to Credit Notes > Early Payment Discounts to batch-create credit notes that reduce the receivable by the discount amount
• The discount is recorded as a reduction in revenue (not as an expense)

7.4 Late Payment Fees

When Late Payment Fees is enabled with a monthly percentage:

• Go to Late Payment Fees > Pending Late Payment Fees to see eligible invoices
• The system calculates the fee as: outstanding balance × (monthly rate ÷ 100)
• Each fee creates: Dr Accounts Receivable, Cr Late Payment Fees Income
• Fees accrue monthly until the invoice is paid

7.5 Rounding

When Rounding is enabled, the system calculates the difference between the gross total and the rounded total, posting the difference to the Rounding Expense or Rounding Profit account. This handles small discrepancies from tax rounding or fractional quantities.

7.6 Cash Basis Accounting

For cash-based reporting, the system converts sales invoices from accrual to cash basis. The conversion:

1. Finds invoices with outstanding AR balances
2. Allocates receipts to invoice lines proportionally
3. Creates cash-basis adjustment entries that reverse the revenue accrual
4. Creates reversing entries for the following day

8. Opening Balances

Sales Orders and Sales Quotes cannot have opening balances — they are non-financial documents.

Sales Invoices also do not have direct opening balances. However, the Accounts Receivable balance can be set via:

1. Settings > Opening Balances > Add
2. Select an Accounts Receivable account or Control Account for Customers
3. The Customer field appears — select the customer
4. Set the Amount and Debit/Credit direction (Debit for AR = customer owes you)
5. If the customer has a foreign currency, select the Currency and enter details
6. Save

9. Reports

9.1 Sales Document Listings

Sales Invoices listing: Issue Date, Due Date, Reference, Quote/Order numbers, Customer, Description, Project, Division, Withholding Tax, Discount, Invoice Amount, Balance Due, Days to Due Date, Days Overdue, Status.

Sales Orders listing: Date, Reference, Customer, Quote, Description, Order Amount, Qty to Deliver, Delivery Status, Invoice Amount, Invoice Status.

Sales Quotes listing: Issue Date, Expiry Date, Reference, Customer, Description, Amount, Status (Active/Accepted/Cancelled/Expired).

9.2 Customer Summary

The Customer Summary report shows Sales Invoices in the "Invoices" column, grouped by customer. It also shows Receipts, Payments (refunds), Credit Notes, Journal Entries, and Late Payment Fees. Supports multi-currency grouping and division filtering.

9.3 Cash Flow Statement

Sales Invoices appear in the CFS as follows:

• Indirect Method: Changes in AR from invoices and receipts appear in "Changes in Working Capital"
• Direct Method: The system converts invoices to cash basis — only the collected portion of each invoice is recognized as cash inflow

9.4 Tax Reports

Sales Invoices with Tax Codes appear in various VAT reports (Mushak 6.2, 6.3, etc.) as output tax. The tax codes on each line determine the VAT amount. Withholding Tax amounts appear in WHT reports.

9.5 Aged Receivables

The Aged Receivables report shows outstanding Sales Invoices grouped by aging buckets — Current, 1-30 days, 31-60 days, 61-90 days, and 90+ days overdue. The Customer Statements (Unpaid Invoices) report provides a per-customer aging view.

10. Sample Data and Report Output

Setup

Quote → Order → Invoice Flow

Status After Each Step

Sales Quote SQ-001:      Status: Accepted (linked to Sales Order)        ✓
Sales Order SO-001:      Delivery: Delivered (100 of 100)                 ✓
                         Invoice: Invoiced (via SI-001)                   ✓
Delivery Note DN-001:    Qty Delivered: 100                                ✓

Sales Invoice SI-001 Details

GL Transactions Created

Revenue entry (Widget-X sale):
    Cr  Revenue — Widget Sales                  5,000.00
    Cr  VAT Payable (15% output VAT)              750.00
        Dr  Accounts Receivable (ABC Retail)                 5,750.00

COGS entry (inventory cost):
    Dr  Cost of Goods Sold                      3,000.00
        Cr  Inventory On Hand (Widget-X)                     3,000.00
    (100 units × 30.00 weighted average cost)

Verification:
    Total Credits:  5,000.00 + 750.00 = 5,750.00
    Total Debits:   5,750.00 (AR) = 5,750.00
    DR = CR: 5,750.00 − 5,750.00 = 0.00 ✓

COGS: 100 × 30.00 = 3,000.00
Gross Profit: 5,000.00 − 3,000.00 = 2,000.00
Margin: 2,000.00 ÷ 5,000.00 = 40% ✓

Sales Order Invoice Status — After SI-001

Customer Summary Impact

Verification: 0.00 + 5,750.00 − 0.00 = 5,750.00 ✓

Inventory Impact

Sales Invoice Status

DR = CR Verification

Sales Invoice SI-001:
    Cr  Revenue — Widget Sales                5,000.00
    Cr  VAT Payable (output VAT)                750.00
        Dr  Accounts Receivable                           5,750.00
    DR = CR: 5,750.00 − 5,000.00 − 750.00 = 0.00 ✓

COGS entry:
    Dr  Cost of Goods Sold                    3,000.00
        Cr  Inventory On Hand                               3,000.00
    DR = CR: 3,000.00 − 3,000.00 = 0.00 ✓

Net profit contribution: 5,000.00 − 3,000.00 = 2,000.00 ✓

11. Accounting Regulation Compliance

11.1 IFRS 15 — Revenue from Contracts with Customers

Requirement (§9, §35): Revenue is recognized when control of goods or services transfers to the customer. For point-in-time transfers, revenue is recognized at the date of delivery or when control passes.

How this system complies: The Sales Invoice records the revenue and receivable when the invoice is issued. If delivery precedes invoicing, the Delivery Note tracks the physical transfer while the Sales Invoice records the financial recognition. The system supports the five-step model through quotes (identify contract), orders (commitment), and invoices (performance obligation satisfied).

11.2 IAS 2 — Inventories

Requirement (§34): When inventories are sold, the carrying amount shall be recognized as an expense (COGS) in the period the related revenue is recognized.

How this system complies: When a Sales Invoice includes inventory items, the system automatically creates a COGS entry at the weighted average cost. The Cost of Goods Sold account is debited and Inventory On Hand is credited, ensuring the expense is matched with the revenue in the same period.

11.3 IAS 32 — Financial Instruments: Presentation

Requirement (§42): A financial asset (AR) is recognized when the entity becomes party to the contractual provisions. It is derecognized when the contractual rights to the cash flows expire or are settled.

How this system complies: The Sales Invoice creates an Accounts Receivable when issued. When the customer pays, the Receipt reduces AR. Early payment discounts and Credit Notes also reduce AR upon application.

11.4 IAS 1 — Presentation of Financial Statements

Requirement (§54): Trade receivables must be presented as a separate line item on the Balance Sheet. Revenue must be disaggregated on the face of the P&L.

How this system complies: Accounts Receivable appears as a separate line item under Current Assets. Revenue from Sales Invoices appears on the P&L, disaggregated by account (product sales, service revenue, etc.).

11.5 IAS 21 — The Effects of Changes in Foreign Exchange Rates

Requirement (§23): Foreign currency monetary items (including AR) are translated at the closing rate at each reporting date.

How this system complies: Sales Invoices in foreign currencies record the exchange rate at invoice date. AR is revalued at period-end by the automated FX revaluation process.

11.6 IAS 7 — Statement of Cash Flows

Requirement (§18): Cash receipts from customers are classified as operating activities.

How this system complies: The Direct Method CFS converts Sales Invoices to cash basis, showing only the collected portion as cash inflow. The Indirect Method adjusts net profit for changes in AR.

11.7 DR = CR Verification

Sales Invoice SI-001:
    Cr  Revenue                                5,000.00
    Cr  VAT Payable                              750.00
        Dr  Accounts Receivable                           5,750.00

COGS:
    Dr  Cost of Goods Sold                     3,000.00
        Cr  Inventory On Hand                              3,000.00

Total Credits:  5,000.00 + 750.00 = 5,750.00
Total Debits:   5,750.00 (AR) = 5,750.00
DR = CR: 5,750.00 − 5,750.00 = 0.00 ✓

COGS: 3,000.00 − 3,000.00 = 0.00 ✓
Net Profit Contribution: 5,000.00 − 3,000.00 = 2,000.00 ✓

11.8 Relevant but Not Applicable

• IFRS 16 (Leases): Sales documents relate to the sale of goods, not lease arrangements.
• IAS 16 (PP&E): Fixed assets can appear on Sales Invoice lines for asset sales, but the document itself is not a fixed asset.
• IAS 20 (Government Grants): Sales transactions are unrelated to government grants.

End of Sales Documents Guide