Commissioned invoices serve the purpose of managing the order backlog for sales agencies. Once an order is entered into OASIS, the system tracks a list of outstanding orders for credit using a two part system. To remove an order from backlog, the following two actions MUST happen
- The order must be fully invoiced. Each invoice calculates estimated earnings based on what was invoiced.
- The invoices associated with the order must be PAID
When the total invoice amount equals the sales amount of the order AND the amount paid equals the total earnings recorded on the order, the order is removed from the backlog.
To help short term cash flow reporting, OASIS also manages an aged invoice report for commissioned orders. The aging starts either with the date of the invoice (Invoice Date) or based on a number of days until the manufacturer typically pays the invoice. The invoice is removed from the aged invoice report when the expected earnings amount is paid on the invoice or the invoice is fully paid.
With these concepts in mind, commissioned invoice entry typically follows one of the following scenarios:
- Basic item level invoicing
- Quick LOT invoicing
- EDI / Spec invoices (Invoicing and Creating a PO at the same time)
Begin by starting the invoice editor. Select the OASIS invoice application:
Then select “New Commissioned Invoice”:
Or select the “Create new commissioned Invoice” button
Key in the manufacturer ID (or name and press “enter” if the name appears). Then key in the PO number. If the PO number is found (and is unique), the following screen appear. If multiple PO numbers are found for the manufacturer, a list is presented. Simply select the related PO to continue the process: Choose whether the information you are entering is either an invoice or a credit.
If the PO is NOT found, please read this section – if it is, please skip to the next paragraph
If the PO is not found, please re-check to confirm the PO is in the system – call Ingen Software if you confirm the PO is in the system, but not find the PO from the Invoice Editor.
If you have confirmed the PO is not in the system, then you can create a matching PO in the system with no more work – ** See the Section below titled “Creating a matching PO”
Next, key in the invoice number (and optionally the MFG Order Number).
The invoice may be completed in a number of different ways. However, the primary concern is that the invoice total sales match the invoice amount. It is possible that the estimated earnings NOT match the manufacturer. The goal is to ensure the manufacturer match the earnings assumption of the agency. Any variance is an exception and should be reviewed.
In this scenario, the quantity shipped is entered on the lines that match the invoice. The assumption is that the agency has fully applied commission and overage amounts to individual line on the order. If this is not the case, the agency may need to assume the amount of the overage credited to them on the invoice (see below):
Lot invoicing and matching “lot overage” lines: Begin by typing the amount of the invoice in the “Quick apply lot value” field. Then tab off the cell. It will add a lot line at the bottom of the invoice for the amount entered. It will also zero out the money for each line invoiced. (Optional) If a user wishes to keep track items shipped, the number of items being invoiced for can be added in the qty field and it will not affect the dollar amount of the invoice.
In this case, “$0” was entered on the fixture, the quantity of 7 was entered on the line (optional – not required) and the value of $525 was entered as the lot value of the invoice.
Please note that the invoice always shows all material on the PO. Adjusting the quantity shows what was or was not invoiced – as long as the price is zero.
HINT: In cases where the item being shipped is not directly linked to an item being ordered (e.g. a common item) – just zero the quantity and key in a lot price (by keying “Lot” in the code column and the amount of the invoice in the “Price” column).
If the item being invoiced does not match the amount of the item in the invoice editor, simply change the price to reflect the amount of the invoiced item. OASIS will track this difference – allowing for later reporting. Whether or not the agency or manufacturer was in error – it is important to know that a difference was identified.
EDI and orders created out of territory for spec credit will not have matching entries in OASIS. To speed the addition of the data in OASIS, it is possible to create the invoice and the order at the same time. Here’s how:
After entering the Manufacturer, Invoice number and PO Number
Then go to File, then “Create Matching PO”
The Select Customer window appears – Select the Customer.
OASIS will ask whether you want to create an invoice or a credit. Choose “Invoice”
Note the Big green release button – OASIS sets the matching PO to Released status
- Enter the Invoice Number.
- Enter the Mfg Order # if known
- Enter the Date if not today
- Enter the Project or Job Name
Oasis will add a line of “material” to the Invoice. The User can add the amount of the invoice on the invoice line.
Go to the accounts tab to select the Quoter and CSR, if known. Then select the Commission account (This is required)
- On the Addresses tab – enter the “Bill To” address if different than the default address.
- On the Dispute tab – enter dispute if necessary
- On the Notes – enter any Notes for this Invoice (Notes will appear on the Invoice below the line items)
Then you’re done!
Note - The matching PO has already been created by OASIS and is in your system.
Creating credits is as easy as creating invoices. When the question appears, simply select “Credit”:
The only difference is that values keyed are made negative on a credit:
The general rule of thumb is to find invoicing and commission payment issues early and follow up quickly. If an issue is found during invoicing (a common problem is that the factory didn’t bill the overage for the order), the dispute may be created quickly by selecting the “disputes” tab and recording a note about the problem:
The “Note” button is used to create a memo to the factory including the order number, invoice number(s), money, and shipping information to help the factory adjust their records:
The system will also prompt to create a reminder to follow up on the dispute with the factory.