Tag Archives: Invoice

Insert a new line in Invoice or Order

One of the improvements in MoneyWorks version 9 is inserting an item line in the detail section of the transaction (e.g. Sales Invoice, Purchase Invoice, etc.)

To insert an item in between the list of items in a transaction of an older version, you have to append the new item and drag it to the position you wish to insert.

macOS: Shift + Option + drag to the position
Windows: Shift + Ctrl + drag to the position

It works fine, but we tend to forget the key combination.

Version 9 has improved it by allowing the user to insert line item anywhere in the transaction/order by press down the Shift key and clicking on the Add Line button. That’s it. You no longer require trial and error between the combination of Shift, Control, Option, and Command key 🙂

Go to the position: Shift + clicking on Add Line button.
insert a line in invoice or order

The same method applies to both macOS and Windows.

There are lots of improvement in MoneyWorks version 9. Book a demo or download a trial to test drive.

Itemised discount vs a Lump sum discount

Software: MoneyWorks accounting systems

What’s the difference between trade and sales discount?

The trade discount is a discount given from the seller to the buyer for the goods purchased, an amount less off from the list price, whereas the sales discount (a.k.a. cash discount) is a discount given from the seller to the buyer on prompt payment.

Trade Discount

Depending on the accounting software, some may apply a lump sum or a percentage on the invoice subtotal, and some may use an itemised discount method when applying a trade discount.

Although the lump sum discount is simple and easier for data entry, the itemised discount method allows the management to analyse the profitability of each product or calculate commission based on a product margin basis.

Itemised discount

MoneyWorks accounting system using an itemised discount method, in which each detail line has its dedicated discount percentage. For example, when invoicing a customer for a product:
BA100 $100 with a 10% discount, it gives a total of $90.

Itemised discount on sales invoice

Assuming the product cost is $60, you can print a Sales by Product analysis report to show the cost, sell price, and margin (i.e. $60, $90, and $30). Besides analysing the product sales, you can also print a commission report based on product sales price or margin (e.g. 10% on product margin).

A lump sum discount

On the other hand, you cannot analyse individual product margin if you are using a lump sum discount.

For example:
You create a discount item (can be a product item type) from the item list and link it to the Trade Discount account (income type) or the Sales account.

Discount item

Assuming you created an invoice to the customer for:

BA100 at $100
BB100 at $130

and give a discount of $30, the invoice will be:

lump sum discount on sales invoice

Although the Profit and Loss report shows an income of $200, the product analysis report will show as (assuming both has the same cost of $60):

The analysis report does not include the discount on the product itself since it applied at the transaction level instead of the product level.

The itemised discount method gives an additional level of analysis, although both produce a similar income statement.

MoneyWorks is a powerful small business accounting system; book a demo to find out more.

How to record a credit note?

Software: MoneyWorks accounting software

MoneyWorks uses the reverse sales invoice (negative invoice) method to record a credit note. It converts the sales invoice into a credit note by clicking on the reverse button on the sales invoice transaction.

Upon converting, it changes the quantity into a negative value, multiplying the unit price to derive a credit amount (negative) if you are using products or services (A negative net amount if you are using a ledger account instead). Of course, you can also manually enter a negative quantity instead of clicking the reverse button to create a credit note.

Credit Note (a.k.a. Negative Invoice)
Credit Note

The credit note debits the sales and credit accounts receivable, which later offset the outstanding invoice.

You have an option of offsetting the credit note with an invoice from the Command menu (via a contra method) or when receiving payment from the customer. Both work, but offset during received payment is preferable (The contra feature is not for contra between a creditor and a debtor owing, but the credit note and outstanding invoice of the same debtor).

Credit Note (a.k.a. negative invoice) shared the same running sequent number as the sales invoice. You may manually change the reference number but try keeping the system-generated number to reduce confusion or mistake.

You can use the invoice form to print the Credit Note by amending the formula of the form tile from a simple text field to an if( ) statement:

if(Transaction.gross < 0, “Credit Note”, “Invoice”)

It prints as a ‘Credit Note’ when the invoice gross is smaller than $0 and ‘Invoice’ when it is $0 or greater. It helps reduce the number of forms you require to manage, ease the operation and reduce mistake made.

MoneyWorks, as a hybrid system, allows sharing of data in the cloud and uses its feature-rich desktop app. Book a demo to find out how to use MoneyWorks to manage your business finance.