Finance Team Guide: Sales Invoice & Payment Entry Workflow

Who Is This Guide For?

This guide is for the Finance & Accounts Team at Tiba Pharma. The Finance team is responsible for the Sales side of the cycle — creating Sales Invoices after goods are dispatched and collecting payment from customers.

Step	Document	Owned By
1	Sales Invoice	Finance Team
2	Payment Entry	Finance Team
3	Bank Reconciliation (periodic)	Finance Team

💡 Note: Purchase Invoices are handled by the Procurement / Store Keeper workflow and are auto-created from Purchase Receipts. Finance does not create Purchase Invoices manually.

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Full Finance Cycle Flowchart

💳 Finance Team — Sales Invoice & Collection Workflow Tiba Pharma · Accounts Receivable Workflow

🚚 TRIGGER — Delivery Note Submitted ✓ (by Store Keeper — goods dispatched to customer) ↓ Finance takes over STEP 1 — Create Sales Invoice From Delivery Note · Verify items, qty, prices, tax ↓ Validate amounts ✅ Correct → Proceed to Submit ❌ Discrepancy → Raise Credit Note ↓ STEP 2 — Submit Sales Invoice Accounts Receivable posted · Customer balance updated ↓ Customer pays STEP 3 — Create Payment Entry Receive · Bank / Cash · Set date, amount, reference no. ↓ Full or partial? ✅ Full Payment → AR Cleared ⚠️ Partial → Balance stays open ↓ STEP 4 — Submit Payment Entry Bank balance increased · Customer AR cleared ✓ ↓ Monthly STEP 5 (Periodic) — Bank Reconciliation Match system entries with bank statement monthly ✓

🟢 Trigger (Store Keeper)  |  🔵 Sales Invoice Steps  |  🟣 Payment Collection  |  🟠 Partial Payment

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Step-by-Step Instructions

📋 Step 1 — Create the Sales Invoice

Navigate to the submitted Delivery Note and click Create → Sales Invoice. The system auto-fills customer name, items, quantities, rates, and tax template.

What Finance must verify manually:

Field	What to Check
Customer	Correct customer name and billing address
Posting Date	Actual date of sale / dispatch
Item Rates	Compare with Sales Order agreed prices
Tax Amount	Correct VAT/tax applied per customer contract
Grand Total	Matches what the customer expects to pay
Payment Terms	Correct due date and credit terms set

⚠️ If any amount is wrong: Do NOT submit. Correct the Delivery Note or raise a Credit Note after submission if needed.

✅ Step 2 — Submit the Sales Invoice

1. Click Submit after all fields are verified
2. The system posts Accounts Receivable in the General Ledger
3. The customer balance is updated
4. The invoice appears in AR aging reports

💳 Step 3 — Create Payment Entry

From the submitted Sales Invoice, click Create → Payment Entry.

Field	Value
Payment Type	Receive
Party Type	Customer
Payment Mode	Bank / Cash / Cheque
Received Amount	Full or partial amount
Reference No.	Bank transfer ref / cheque number
Reference Date	Date of actual bank transfer / receipt

✅ Partial Payments: You can receive a portion. The remaining AR balance stays open in aging reports until fully collected.

✅ Step 4 — Submit Payment Entry

1. Review all fields and the references table
2. Click Submit
3. The bank/cash account balance increases
4. The customer AR balance is cleared (fully or partially)

🏦 Step 5 — Bank Reconciliation (Monthly)

Go to Accounts → Bank Reconciliation at least once per month. Match system Payment Entries against the actual bank statement.

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Key Reports for Finance

Report	Purpose	Frequency
Accounts Receivable Aging	Outstanding customer balances by age	Weekly
Sales Invoice Trends	Monitor sales revenue over time	Monthly
General Ledger	Audit all accounting entries	On demand
Bank Reconciliation	Match system with bank statement	Monthly
Customer Ledger Summary	Full payment history per customer	On demand

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Important Rules

• Finance creates Sales Invoices only — Purchase Invoices are handled in the procurement workflow.
• Always link Payment Entries to specific invoices in the References table to keep AR aging clean.
• Submitted invoices and payments cannot be edited — cancel and re-create for corrections.
• For intercompany transactions, the Sales Invoice from Tiba must exactly match the Purchase Invoice amount on Al-Khadra’s side.
• Use Credit Notes for returns or price adjustments against submitted Sales Invoices.