As a new user of SAP Business One, have you ever asking what is the differences between this two on SAP Business One? Which one is more suitable for you?
First, let’s talk about AR Invoice.
AR Invoice can be created based on Sales Quotation, Sales Order, Delivery Order, or Blanket Agreement. Normally, you can choose, this type of invoice can be created before or after Delivery Order.
Invoicing Flow (Before or After Delivery)
The difference before or after DO is only on posted journal itself. Invoice created after DO will be posted like this:
Dr 1xxxx Customer Receivable xxx
Cr 2xxxx Output Tax xxx
Cr 4xxxx Sales Revenue xxx
And when created before:
Dr 1xxxx Customer Receivable xxx
Dr 5xxxx COGS Finished Goods xxx
Cr 2xxxx Output Tax xxx
Cr 4xxxx Sales Revenue xxx
Cr 1xxxx Inventory xxx
But, the concept will be different if we talk about AR Reserve Invoice.
Also read:
There’ll be no posted journal to Inventory Account, and this type of invoice more suitable if you don’t want to create invoice without deducting the items from the inventory.
Posted Journal on AR Reserve Invoice
The posted journal on AR Reserve Invoice add into SAP Business One system:
Dr 1xxxx Customer Receivable xxx
Cr 2xxxx Output Tax xxx
Cr 4xxxx Sales Revenue xxx
Kindly note that AR Reserve invoice is closed against an incoming payment, the same concept with standard AR Invoice. However, inventory closure takes place in the Delivery Order.
Extra Information:
So, what is the different based on table composition?
Yes, both are in the table OINV
But, don’t worry, you can use ‘IsIns‘ field.
If the value is ‘Y‘, it means that document is AR RESERVE INVOICE.
Also read:
