Alex Ruben
How to Convert a Sales Order to a Sales Invoice with an Early Settlement Discount in Sage 50
In this guide, you will learn how to efficiently convert a sales order into a sales invoice using Sage 50, while also applying an early settlement discount. This process is essential for businesses looking to manage their sales and invoicing effectively. By the end of this tutorial, you’ll be able to handle sales orders and invoices seamlessly, ensuring customers can benefit from discounts for early payments.
Before starting, ensure you have Sage 50 installed on your computer, laptop, or tablet running Windows 10 or Windows 11. Familiarize yourself with the basic navigation of Sage 50 and ensure you have access to customer sales sections. This guide assumes you have a sales order already created for a customer.
Step 1: Access the Sales Invoice Section
Begin by navigating to the Customers section in Sage 50. From there, select Sales Invoice to open the sales invoice interface. This section is where you’ll be able to create new invoices based on existing sales orders.
Step 2: Create a New Sales Invoice
Click on New Sales Invoice. Once this option is selected, you will need to locate the customer for whom you are creating the invoice. For this example, select Scott Anderson. Upon selecting the customer, the system will gray out the area indicating that there is an existing sales order linked to this customer.
Step 3: Select the Relevant Sales Order
Choose the relevant sales order to convert. You should verify the quantities to ensure you are invoicing for the correct items. For instance, if the order includes 2,800 shirts and 2,000 pens, ensure these quantities are correctly displayed before proceeding.
Step 4: Adjust Invoice Details
Before finalizing the invoice, check the date. Set the invoice date to 26th of January and ensure that the due date corresponds correctly (typically set automatically). You can also add a reference number for tracking purposes.
Step 5: Set Payment Terms and Discounts
Next, adjust the payment terms. If the standard terms are Net 30 Days, you can alter this if there is a discount policy. For instance, if you offer a 2% discount for payments made within 10 days, you should manually calculate this discount based on the invoice total. In this case, 2% of the total amount (e.g., 2,120) is 42.4. Enter this discount in the invoice terms as 2% 10 Net 30 to reflect the discount available.
Step 6: Save the Invoice
Once all details have been confirmed and the discount terms are set, save the invoice. This action will finalize the transaction in the system. To verify the entries, you may wish to check the journal entry effect of this transaction.
Step 7: Review Journal Entries
To ensure that everything has been recorded correctly, navigate back to the previous transaction and click on the Journal option. Here, you will be able to see a complete journal entry for this transaction, confirming its accuracy.
Extra Tips & Common Issues
When creating sales invoices, double-check the quantities before saving to avoid discrepancies. Ensure that the discount terms are clearly communicated to customers to encourage early settlement. If there are any issues with the invoice not reflecting correctly, revisit the details you entered and ensure all calculations are accurate.
By following these steps, you can effectively convert sales orders to invoices while managing discounts, ultimately streamlining your sales process.
Frequently Asked Questions
How do I adjust payment terms after saving an invoice?
To adjust payment terms, locate the invoice in the Sales Invoice section, select it, and edit the payment terms as needed before saving changes.
What should I do if the discount doesn’t calculate automatically?
If the discount does not calculate automatically, ensure that the discount terms are correctly set in the invoice settings. You may need to manually input the discount if the system does not support automatic calculations.
Can I apply multiple discounts to an invoice?
Typically, you can apply one discount structure per invoice. However, you can manually adjust line items to reflect different discounts if necessary.