Invoicing functions as a crucial milestone within every sales process. Each invoice relies on various billing events, which subsequently initiate invoicing-this being a pathway to receive official payments. The NetSuite invoice processing involves a four-step approach:
- Generating the invoice
- Obtaining approval for it
- Receiving payment against it
- General Ledger posting
With the NetSuite Order to Cash Cycle, numerous methods are available to create invoices against the generated Sales Order. Discover 4 NetSuite invoicing techniques for your clients.
4 NetSuite Invoicing Techniques
1. Directly from an Existing Sales Order
Creating an invoice from an existing sales order maintains the integrity of the O2C cycle within the system. These invoices can be issued on an individual basis based on specific needs.
We have three choices for filling an invoice on a Sales Order:
Bill Remaining
This option allows us to bill the total amount that appears as a balance on the Sales Order.
Bill Next
This is applicable when we are billing the sales order in segments or as agreed in the Sales Contract.
Batch Processing
Sales orders can be processed in batches to generate multiple invoices simultaneously without any particular instructions. To batch process sales orders:
Navigate to Transactions > Sales > Invoice Sales Order > Select the orders against which to create invoices > Done!
2. From Item Fulfillment
To generate an invoice based on items received or delivered, access the Item Fulfillment page in NetSuite. This page displays all items along with their current fulfillment status and additional tabs containing details about shipping and packaging. Click the Bill button, which will then redirect you to a new invoice record based on the actual order. Complete the necessary fulfillment details and save the invoice.
3. From a Customer Record
To create an invoice directly from a customer record, navigate to the Sales sub-list tab on the Customer Record page and click on the new invoice button. Input the required item details to be billed and save! Similar to standalone invoices, this invoice will remain unlinked to the sales order.
4. A Standalone Invoice
Standalone invoices can be created using the Sales Order Form by selecting the Form Type as ‘Invoice’. These invoices are isolated with no related history and will only showcase a payment record transaction as an associated entry. This method is primarily common among small businesses where the creation of a Sales Order is not mandatory.
Regardless of which invoicing method is selected, those based upon the Sales Order will always provide an audit trail, allowing for a review of related records to clearly understand what was ordered and how it was fulfilled in order to trigger the next invoicing phase.
