Converting Order to Invoice

Converting Order to Invoice

Converting a sales order to an invoice is a key step in your sales workflow. This process creates an invoice from an existing order, transferring all order details while allowing you to make final adjustments before billing your customer.

When to Convert Order to Invoice

You should convert an order to invoice when:

• Items have been delivered to the customer
• Services have been completed
• You're ready to bill the customer
• The order is fulfilled or partially fulfilled
• You want to record the sale in your accounts

Prerequisites

Before converting an order to invoice, ensure:

• The order exists and is in a convertible status (Pending, Partially Fulfilled, or Fulfilled)
• All order details are correct
• Customer information is up to date
• Items and quantities are accurate
• Pricing and discounts are finalized

Step-by-Step Conversion Process

Method 1: From Order Details Page

1. Navigate to Sales → Sales Order → List
2. Click on the order you want to convert
3. Review the order details to ensure everything is correct
4. Click the "Convert to Invoice" button (usually located at the top or bottom of the order details)
5. You'll be redirected to the invoice creation page with pre-filled data

Method 2: From Order List

1. Go to the Sales Order list view
2. Select the order(s) you want to convert
3. Click the "Convert to Invoice" action button
4. Follow the conversion process

What Gets Transferred

When converting an order to invoice, the following information is automatically copied:

Customer Information

• Customer name and contact details
• Billing address
• Shipping address
• Customer tax information
• Payment terms

Order Items

• All items from the order
• Quantities (can be adjusted if partially fulfilled)
• Unit prices
• Discounts (item-level and order-level)
• Tax information

Financial Details

• Subtotal
• Discounts and charges
• Tax calculations
• Total amount

Additional Information

• Reference number
• Delivery date
• Terms and conditions
• Notes (if applicable)

Editing Before Finalizing

After conversion, you can edit the invoice before saving:

Adjust Quantities

• If the order was partially fulfilled, adjust quantities to match what was actually delivered
• Remove items that weren't delivered
• Add additional items if needed

Update Prices

• Modify unit prices if they've changed
• Adjust discounts
• Update additional charges

Modify Dates

• Set the invoice date (defaults to today)
• Update due date based on payment terms
• Adjust delivery date if different from order

Update Other Details

• Change invoice number if needed (subject to numbering rules)
• Modify terms and conditions
• Add or update notes
• Change shipping address if required

Partial Conversion

If your order is partially fulfilled, you can:

• Convert only the fulfilled items to invoice
• Adjust quantities in the invoice to match delivered items
• Leave remaining items in the order for later conversion
• Create multiple invoices from the same order if needed

Saving the Invoice

Once you've reviewed and made any necessary changes:

1. Click "Save Invoice" or "Create Invoice"
2. The invoice will be created and saved
3. The order status may automatically update to "Fulfilled" or "Invoiced"
4. Stock will be updated if stock tracking is enabled
5. Accounts receivable will be updated

After Conversion

Once the order is converted to invoice:

Order Status

• The order status typically changes to "Fulfilled" or "Invoiced"
• The order remains in the system for reference
• You can still view the order and its link to the invoice

Stock Updates

• If stock tracking is enabled, inventory is updated
• Reserved stock (from the order) is deducted
• Stock levels reflect the sale

Accounting Impact

• Sales revenue is recorded
• Accounts receivable is created
• Tax liability is calculated
• Inventory cost of goods sold is updated (if applicable)

Linking and Reference

The invoice maintains a link to the original order:

• You can view the original order from the invoice page
• Order number is referenced in the invoice
• This helps maintain a clear audit trail
• Useful for customer service inquiries

Multiple Invoices from One Order

In some cases, you may need to create multiple invoices from a single order:

• When items are delivered in multiple shipments
• When billing different items at different times
• When using different payment terms for different items

To do this:

1. Convert the order to invoice for the first set of items
2. Adjust quantities to include only items for the first invoice
3. Save the first invoice
4. Convert the same order again for remaining items
5. Repeat as needed

Best Practices

• Always review the invoice before saving to ensure accuracy
• Verify quantities match what was actually delivered
• Check that prices and discounts are correct
• Ensure tax calculations are accurate
• Update delivery dates to reflect actual delivery
• Add notes if there are any special circumstances
• Convert orders promptly after delivery to maintain cash flow

Troubleshooting

Can't find the "Convert to Invoice" button?

• Check that the order is in a convertible status (not Draft or Cancelled)
• Ensure you have permissions to create invoices
• Verify that the Sales Invoice module is active

Invoice amounts don't match the order?

• Check if quantities were adjusted during conversion
• Verify that prices haven't changed since the order was created
• Review discounts and charges
• Check tax calculations

Stock is not updating after conversion?

• Verify that stock tracking is enabled for the items
• Check that the invoice was saved successfully
• Review inventory settings

Can't convert a partially fulfilled order?

• Ensure you're adjusting quantities to match delivered items
• Check that at least one item has a quantity greater than zero
• Verify the order status allows conversion

Converting orders to invoices efficiently helps you maintain accurate records and ensures timely billing of your customers!