Sales: complete guide

What the Sales module does

Sales records what you sold and to whom. One sales invoice deducts the stock, records the true cost of what went out, posts the revenue, and increases what the customer owes you.

Setting up customers

Customers are accounts in your chart of accounts, under the receivables control head. Create one account per customer under Account & Finance → Definition → Account Opening. That account is what carries their balance and appears in their ledger.

Creating a sales invoice

1. 1Go to Sales → Transactions → Sales Invoices and choose Add.
2. 2Select the customer account and enter the invoice date and due date.
3. 3Add a line per item: choose a catalogue item for goods, or type a description for services.
4. 4Enter quantity, unit, rate, and discount or tax where they apply.
5. 5Check the subtotal, tax and total, then save.

What happens when you save

• Catalogue items are deducted from stock using FIFO, so the cost recorded is what that stock actually cost you.
• The customer account is debited with the invoice total.
• Revenue is credited, and output tax is posted to the tax account.
• The invoice appears immediately in your receivables and financial statements.

Receiving payment

The customer balance reduces and the receipt appears in their ledger and your cash or bank account.

1. 1Go to Account & Finance → Transactions → Voucher.
2. 2Choose Bank Receipt or Cash Receipt.
3. 3Select the customer account and enter the amount received.
4. 4Reference the invoice in the narration and save.

Delivery and dispatch

Where goods are delivered, record a delivery note for the dispatch, and an outward gate pass for what physically left your premises. Together they are your proof of delivery if a customer queries a shipment.

Sales reports

• Party Wise Sales — what each customer bought over a period.
• Rate Analysis — the rates charged over time, to spot inconsistent pricing.
• AR Aging — who owes you and for how long.
• Account Ledger — the full history of one customer.
• Profit Margin Analysis — whether your selling prices are covering real costs.

Good practice

• Invoice on the day you deliver, so revenue and receivables stay in step with reality.
• Set due dates on every invoice — aging reports depend on them.
• Review AR aging weekly and chase the oldest balances first.