Sales Ledger Procedures

Alex301286

I am looking for some general advice on when a sales ledger department would raise a sales invoice. I am currently doing the Inkwell case study and reviewing the sales ledger function as I have previous experience of working within this department. However I work in property management and our invoices are issued in arrears.

The case study states that the invoice is raised once the clerk receives the good despatched docket. My general thought is that there is nothing to say this item was definitely loaded on the van for despatch or received by the customer.

Presumably a recommendation I could suggest is that the driver takes a goods ordered listing which has to be signed by the customer to confirm they have received all goods. Once this signed document is received by the clerk an invoice is then raised.

Can anyone add to this and just give an indication to common practise of when an invoice is raised.

Thank you,

BigJim

Hello Alex

I work in a office interiors company to end users, if the client is just buying furniture on 30 days credit we always raise an invoice when I receive the delivery note signed by the customer.

But if it's a fitout customer doing a big refurbishment, we raise a deposit invoice (pro-forma basically) before the works start which helps our cashflow massively due to the fact the fitout projects pay for themselves. :thumbup1: and if they don't pay the deposit - we don't start on site!

Working in property management - I guess your probably familiar with this way of doing it anyway??