Invoicing¶

Welcome to the guide dedicated to the Invoicing area within Dsposal's Paperwork. In this article, we'll explore the functionality of Invoicing and its significance in managing finance documents such as invoices, credit notes, and rebate credits.

Before you start¶

Before jumping into the Invoicing area, it's essential to understand the following key points:

Invoicing is an optional area within the work module, providing flexibility in managing finance documents.
The Invoicing area allows the creation and management of three linked but separate finance documents: Invoices, Credit Notes, and Rebate Credits.
In the invoicing process, a request is made for payment for the waste or services that have been ordered, received, or consumed. Quoted within Sales and completed within Jobs.

What is the Invoicing Area?¶

The Invoicing area in Dsposal's Paperwork is a flexible space dedicated to creating and managing finance documents such as invoices, credit notes, and rebate credits. These documents serve as formal requests for payment or adjustments related to waste or services ordered, received, or consumed. While Invoicing is optional, it provides valuable functionality for organisations to streamline their financial processes and maintain accurate records within Paperwork. Through the Invoicing area, users can generate, track, and manage finance documents seamlessly, ensuring transparency and efficiency in financial transactions.

Completely Optional

Finance is a purely optional area of Paperwork. Whether an organisation chooses to use Finances or not comes down to the individual organisations' business logic.

Difference between Invoices, Credit Notes, and Rebate Credits¶

In the Invoicing area of Dsposal's Paperwork, users can create and manage three distinct types of finance documents: Invoices, Credit Notes, and Rebate Credits. Each document serves a specific purpose in managing financial transactions and resolving issues related to billing and payments. Here's a breakdown of the differences between these documents:

Invoices¶

Purpose: Invoices are documents used to request payment from a customer to a supplier.
Functionality: They serve as formal requests for payment for goods or services provided by the supplier to the customer.
Usage: Invoices are generated to bill customers for products or services received, outlining the details of the transaction, including itemized charges, quantities, prices, and payment terms.
Example: An invoice is issued by a waste management company to a customer for waste collection and disposal services rendered.

Credit Notes¶

Purpose: Credit notes are documents used to specify credits due to the customer from the supplier, typically generated to rectify errors on an invoice.
Functionality: They serve as acknowledgments of credit owed to the customer, often issued to correct billing mistakes, such as overcharges or incorrect quantities.
Usage: Credit notes are generated to provide refunds or adjustments to customers for billing discrepancies or unsatisfactory services, effectively reversing charges previously billed on an invoice.
Example: A credit note may be issued by a supplier to a customer to refund an overpayment or compensate for goods returned.

Rebate Credits¶

Purpose: Rebate credits are documents used to specify a payment due to the customer from the supplier, typically generated when a waste or service is bought by the supplier from the customer.
Functionality: They serve as acknowledgments of payment owed to the customer for providing goods or services to the supplier, effectively reversing the payment flow from supplier to customer.
Usage: Rebate credits are generated to compensate customers for supplying goods or services to the supplier, such as material recycling or waste disposal services.
Example: A rebate credit may be issued by a supplier to a customer for supplying recyclable materials or participating in a waste diversion program.

Understanding the distinctions between Invoices, Credit Notes, and Rebate Credits is essential for accurately managing financial transactions and maintaining transparent and efficient billing processes within Dsposal's Paperwork.

Invoice Process¶

The basic invoicing process involves the interaction between a supplier and a customer. In this sequence diagram, we illustrate the flow of events as the supplier raises an invoice, sends it to the customer, and the customer receives and accepts the invoice, following by money flowing to the supplier.

 sequenceDiagram
    autonumber
    participant S as Supplier
    participant C as Customer
    Note over S: Raise Invoice
    S->>C: Send Invoice
    Note over C: Accept Invoice
    C->>S: Issue Money

Rebate Process¶

The rebate process involves the interaction between a supplier and a customer. In this sequence and in the diagram below we illustrate the flow of events as the supplier raises a rebate, sends it to the customer, and the customer receives and accepts the rebate, and credit is issued to the customer.

 sequenceDiagram
    autonumber
    participant S as Supplier
    participant C as Customer
    Note over S: Raise Rebate Credit
    S->>C: Send Rebate Credit
    Note over C: Accept Rebate Credit
    S->>C: Issue Credit

Invoice Reconciliation Process¶

This sequence diagram illustrates the invoice reconciliation process between a supplier and a customer. It demonstrates the flow of events as the supplier raises an invoice, the customer rejects it, and the subsequent exchange of responses, including the issuance of a credit note by the supplier. Finally, it shows the resolution of the process with the issuance of money by the customer and the issuance of credit by the supplier.

Info

Credit notes MUST be create from an invoice. An invoice cannot exist in Paperwork without a linked job. This means that before a credit note can be generated, there must first be an existing invoice to which it relates. They are intrinsically linked to the invoicing process and are dependent on the existence of an associated invoice.

Therefore, every credit note is linked backed to an invoice.

 sequenceDiagram
    autonumber
    participant S as Supplier
    participant C as Customer
    Note over S: Raise Invoice
    S->>C: Send Invoice
    Note over C: Reject Invoice
    C->>S: Send Response
    Note over S: Reconcile Charges
    Note over S: Raise Invoice
    Note over S: Raise Credit Note
    S->>C: Send Invoice
    S->>C: Send Credit Note
    Note over C: Accept Invoice
    Note over C: Accept Credit Note
    alt rejection process
        Note over C: Reject Invoice
        Note over C: Reject Credit Note
        Note over S,C: Return to 2
    end
    par happens in parallel
        C->>S: Issue Money
    and
        S->>C: Issue Credit
    end