25 Aug 2022 | Windward Software
B type Invoices
This Windward Webinar focused on the use of B-type invoices in the Windward System Five. B-type invoices, or backorder invoices, allow the total value of the invoice to be charged to the customer's account even if not all items have been shipped or delivered. Watch a live demo on how to set up, use, and understand the accounting postings for B-type invoices.
- Jennifer welcomed everyone and introduced Eugene as the presenter on B-type invoices.
- Eugene explained that a B-type invoice allows the total value to be charged to the customer’s account even if not all items have been shipped or delivered. It provides advanced functionality but can cause confusion, so it's recommended to get advice before implementing this in a system.
- He then discussed the setup requirements for B-type invoices: using back orders on invoices, defining the unearned revenue ledger, and adding the B-type invoice in the invoice setup.
- Eugene noted that B-type invoices can cause issues with tax collection and remittance, and special orders cannot be automatically filled when using this type of invoice.
- He also detailed the accounting postings in the back end and then demonstrated how to use B-type invoices in a demo.
- Eugene reminded attendees about resources available for further help, including the help center, customer care portal, Windward Learning Academy, professional services, and emergency support.
- During the Q&A, Eugene clarified that adding and removing items on B-type invoices are the same as for regular invoices, sales tax is posted as soon as a B-type invoice is created, and that the system does not automatically change a B-type to an A-type invoice once all back orders are filled.
- He also explained that a B-type invoice will have a different print layout depending on the form chosen in invoice designer and that B-type invoices are posting invoices while work order invoices are non-posting.
- The next webinar will discuss touchscreen setup, and this webinar will be available for
0:42
Hello everybody. Good afternoon. Thank you for joining us for today's Windward webinar.
0:47
My name is Jennifer and I'll be moderator for today's presentation.
0:51
After the presentation we will have some time for questions so make sure to enter them into the question box.
0:57
Anything that we're not able to address during the presentation we can answer offline by email or you can connect with our support team at support at windwardsoftware.com.
1:08
Today, our presentator is Eugene, and we'll be discussing B-type invoices.
1:16
So without further ado, let's get started.
1:21
All right.
1:22
Hi, everyone.
1:22
Good afternoon.
1:23
Again, my name is Eugene, and I'll be your presenter for today's webinar.
1:27
So we will be talking about B-type invoices.
1:32
So maybe some of you guys don't know what the B-type invoice is because maybe you haven't seen this yet.
1:39
But yeah, B stands for backorder.
1:42
So backorder invoice is similar to an A type invoice, which is your accounts receivable invoice, in that the total value of the invoice is charged to the customer's account.
1:54
However, not all of the items have been shipped to or delivered to the customer.
1:59
This invoice type provides advanced functionality, which can cause confusion.
2:04
So it's highly recommended to consult first before implementing this to your system.
2:12
So the things to discuss.
2:16
So setup requirements, when and how to use, and then the accounting posting in the back end.
2:25
For the setup requirements, first is use back orders on invoices, which can be found in your setup wizard.
2:33
So just follow the path, setup wizard, invoice setup, InvoiceOptions1.
2:39
So check this option to allow an ordered quantity to be different than the shipped quantity on any invoice type.
2:47
While this option is unchecked, you will not see the Ordered column on the Items tab of the point of sale screen.
2:54
And you will also not be able to place special orders for stock.
2:59
So the B type invoice requires that this option is checked in order to function.
3:05
So second, define or set the unearned revenue ledger.
3:12
So it's still in a setup wizard, go to general accounting, special ledger numbers and default chart of accounts.
3:19
So you can find it there.
3:20
And then you also need to make sure that this ledger is added to your chart of accounts.
3:28
So this is going to be a non-current liability ledger account.
3:32
So you can also ask your accountant to decide on what number to use.
3:38
And then third thing is add the B-type invoice in the invoice setup.
3:43
So if you go to Setup Tools, Printing Options, you'll find the invoice setup.
3:49
So you'll find your invoice tree, and then you can just drag the B-type invoice from the list to your basically list of available invoices to use.
4:01
So, yep, next one is when and how to use.
4:06
So before we know when or how to use B-type invoices, we need to know that there are known issues.
4:14
So B-type invoices can cause issues with other features within the system.
4:19
So this feature was created to meet very specific requirements and should only be used if none of the following known invoices do not negatively impact or affect your business operations.
4:32
So tax collection and remittance becomes an issue when the total amount of the invoice is posted to the AR subledger prior to the actual collection of the money from the customer.
4:44
So in most tax jurisdictions, the moment the invoice is posted as a receivable, the retailer is required to remit the taxes collected to the proper authority.
4:56
And then next is special orders can be set up to be automatically filled when the purchase order is received, but this feature is not compatible with a B-type invoice.
5:07
And therefore, it cannot be used for any invoice type.
5:11
So that is if B-type invoices are to be used.
5:17
So yeah, what makes a B-type invoice different?
5:20
So the line, again, the line total of each item is the ordered value or ordered quantity times the price value.
5:30
So it's similar to work orders, but unlike all other invoice types where the line total is shipped value or shipped quantity times the price value.
5:39
So this allows you to charge on the full invoice amount, even though the invoice still has back orders.
5:46
The B type invoice allows you to see which date each line or part of a line was shipped and then you can then print out packing slips that only show you the ship items for a specific date.
6:01
So yeah, a B type invoice is the final type of invoice which updates the customer's account balance with a full amount on the invoice.
6:09
Taxes are also posted in the book month in which the invoice was created.
6:13
So you may be paying taxes on items you have not shipped or collected the money for.
6:20
So you have billed or collected from the customer for these taxes so they should be remitted. And then lastly, using the invoices.
6:31
So I will be doing some demonstration later so that you can see how to basically go and use it.
6:42
And then accounting posting in the back end, which will then be shown in my demonstration.
6:51
So let me just get out of here and go to my demo.
6:57
So before I show you how to use the B-type invoices, let me just go and review first the setups so that you can easily follow through.
7:09
So if I go to Setup Wizard, so my computer's kind of slow today.
7:22
Okay, there you go.
7:24
So again, as what I mentioned, you need to make sure that the ledger is defined.
7:28
If you go to your general accounting, special number ledgers and default chart of accounts.
7:33
So you can then see there that I've already set up my unearned revenue.
7:38
So I'm using 2777, but this doesn't mean that you need to use the same number.
7:43
So you can choose any number you want.
7:45
And then this is under the non-current liability.
7:51
And then, yeah, you need to make sure that this allegory is also added in your chart of accounts.
7:59
All right, and then next is the invoice options.
8:02
So if you go to invoice setup, invoice options one, you can see there a box that says, use back orders on invoices.
8:10
So if you decide to use the B type invoice, this box needs to be checked.
8:15
And along with that, you also need to check the box that says require that all items are shipped before completing an invoice.
8:23
So, yeah, this is very important so that you can restrict your B invoices not to be finalized because, yeah, again, the B type invoices is all about, you know, back orders.
8:37
So, two boxes checked, and then what else?
8:41
Yeah, the printing.
8:42
So, in case when you create a sale, you didn't see the B type invoice yet as one of your options.
8:49
So you need to add that manually by going to Setup Tools, Printing Options, Invoice Setup.
8:56
And here's your invoice tree.
8:58
And if you go to this side of the screen, you can see the B type invoice.
9:03
So AR with back orders.
9:05
All you need to do is just to grab it and drop it to your invoice tree.
9:09
And it will then be added there.
9:12
So yeah, for the demonstration.
9:14
So actually I've already created a B type invoice here.
9:19
So let me just try to pull it up.
9:20
So there's my B type invoice.
9:30
So yes, we wanna edit that one so we can see it properly.
9:34
Okay, so in here I have a test item one, two, three.
9:38
So you can notice that I have an ordered quantity of 10, but zero quantity under this column here because I haven't shipped anything yet to the customer.
9:49
And then give, even though there's nothing shipped, But with the ordered quantity, you are already charging the customer the total amount of the invoice.
10:01
So you can see ordered quantity time is my price, which is 100.
10:05
So that's 1,000 plus taxes.
10:07
So that's why it's 1,050.
10:12
So when you ship, oh, by the way, I will just show you first what it looks like at the back before I try to go further.
10:23
So if you go to edit single transaction, you will then see your back end posting.
10:29
So these are, yeah, the ledger number is posted.
10:33
So your accounts receivable is there, it's posting to the debit.
10:37
There's your unearned revenue posting to the credit side.
10:42
And then, yes, what I've mentioned, it's already posting to the taxes.
10:45
So you already have a tax payable on the credit side.
10:49
And then you have an unearned income.
10:52
So it's just in and out, as you can see.
10:55
So yeah, that's how it looks like initially.
11:00
So back orders, none of the items are shipped.
11:04
So now let's try to ship.
11:08
So out of 10, maybe we can just pick five, five quantity to be shipped.
11:15
So here, a pop-up window will allow you to pick which date that the five quantity you just added to decide when it was shipped.
11:27
So I'll pick August 2nd.
11:29
So pretending that I've already shipped the five on the 2nd of August.
11:34
And then you can see that it automatically breaks the line.
11:38
So you can see here that there's a column for ship date.
11:42
And then also, if you can go here, you have drop-down menu wherein you can choose the full view.
11:49
So that's the full view, the 10 ordered, quantity five, and then the ship date, and then, yeah, that's it.
11:58
So if I exit this out, so I'm just going to say yes.
12:02
So take note that the customer didn't pay yet, but given that the tax has been posted already in the back end so it's already a payable on your end so yep there you go so I have non ship I view full view here's the the whole thing you can see the ordered and then the quantity ship the non ship so just focusing on what's remaining as back orders and then you have the ship the first batch that were shipped to the customer on August 2nd so now I'm just gonna go back to non ship and I will pick two, because I'll be shipping two on the 6th of August.
12:49
And then as you can see, it automatically added a new line under the ship date.
12:55
So the first batch was shipped on the 2nd, and then the 2nd batch was shipped on the 6th.
13:01
So exit without print.
13:03
Just gonna try to pull it up so that we can see the back end posting.
13:15
All right, again, drop down menu, full view, the whole thing, the overview, the non-ship, so pending back orders, first batch that was shipped, and then the second batch.
13:28
It also specified the date of the shipping.
13:34
So again, there's my pending back order.
13:38
So let's try to look at the back end.
13:42
So now our B-type invoice has been partially shipped, and then there are still remaining back orders.
13:49
So yep, a lot of things in there.
13:51
But as you can see, yep, there's the AR posting still, then, and so on.
13:57
So you can just take a look.
14:04
Anyway, you can go back to the replay because we will be storing this video right after the presentation.
14:13
So you can access this anytime if you need to review.
14:17
All right.
14:18
So now I'm just gonna complete this.
14:20
So I'm just gonna put the three on there, and then yeah, choose today's date as, because we're shipping the three today.
14:29
And then that completes our back order invoice.
14:32
So I'm just gonna exit.
14:45
All right, so going back to the drop down menu, you have the full view and on ship, and then yeah, you have three batches.
14:51
So for the non-ship, since I've already shipped everything, so yeah, nothing's on there.
14:56
So full view.
14:58
So yep, there's the overview, and then under the ship date you can see the dates and then in the back inside of things let's go back transaction and there you go so i'll not discuss each one of them but yeah as you can see that yep all of them are posted and then yeah you can just watch and do your analysis but yep that's it and then yeah i guess that's all for the demonstration so i'm just gonna try to pull of my, what do you call this, my PowerPoint presentation.
15:39
So yeah, we do have resources available.
15:41
So we have the help center, a customer care portal, when we're learning Academy, and you have the links there for each one of them.
15:50
So these are prior consumption to help you out with any issues that you're experiencing or any confusion or any questions that you have in mind on how to do stuff in the system.
15:59
So we have everything's in there.
16:00
And then we also have our Windward professional services.
16:06
So windwardsoftware.com slash professional services.
16:10
So you just need to contact account manager for a quote.
16:13
So just call 1-800-663-5750.
16:17
So, and then we have emergency support.
16:20
So this is for those customers who experienced an entire system down, unable to take payment, cannot log into system five and are recovering from a power outage.
16:32
So just go to windwardsoftware.com slash emergency.
16:35
And then, yeah, just send in your emergency support to get there.
16:39
And then again, as what I've mentioned earlier, we do store the webinar videos, so webinar archives.
16:45
So just go to windwardsoftware.com slash webinars.
16:48
And then, yeah, you can see previously recorded events.
16:50
And then, yeah, you can access them anytime.
16:53
And yep, now we're down to our questions and answers.
16:57
Jennifer?
16:58
Okay, excellent. We got a few questions coming in. Thank you everybody.
17:03
We'll go with a question from Maddie first. She'd like to know about adding and removing items to B-type invoices.
17:13
Yeah, removing and adding items is just the same as what you're doing with regular type of invoices. Okay, let me just try to go to my demo here. Hold on.
17:22
Just going to try to pull it up. So yeah, it's just the same thing.
17:24
If you want to add something, just click the Add Item button, and if you wanted to remove an item, just highlight the item, right click, and delete it.
17:34
I'm just gonna show you.
17:40
So, adding up here, so Add Item, I'm just gonna cancel this.
17:46
Guess we need to go here so we can see the whole thing.
17:48
All right, so Add Item, then we can just pick, let me see if I can pull up any item here.
17:56
Okay, let's try this.
17:57
Okay, there.
18:01
So yeah, you can add an item just like that, just the same as the regular thing.
18:08
And then if you want to remove, so you can just right-click and delete the line.
18:12
All right, Maddie, I hope that answers your question.
18:16
Okay, excellent. Thank you.
18:17
And then the next question is, when adding a date for items shipped, does it also update the delivery tab in the invoice?
18:27
Let's see, nope.
18:31
So deliveries, you need to manually input information in here.
18:40
So yeah, answer is no.
18:43
Okay, next question.
18:44
After all back orders are filled, does the system change it to an A invoice?
18:53
Automatically, answer is no.
18:55
You have to proactively switch this to an AR.
18:59
So given that this invoice is not yet paid, let's try to see if the system will allow to flip this to an AR.
19:05
I think it will, but the thing is, oh yeah, since it's completed, so yep, manually flip it to AR, so it doesn't do it automatically. You have to manually flip it.
19:20
Okay, I think that answers Christine's question as well, so we'll move on to Tina.
19:26
When you send a partial item, does the customer pay for the item shipped, or is the entire invoice due upon entry?
19:34
It's not a requirement that a customer needs to pay whenever you ship items to them, but it's highly recommended that you take payments because, again, as what I mentioned earlier, the moment you create the B-type invoice with all the items still on back orders, the system's already recording it in the accounts receivable ledger and also in the taxes side of things.
19:56
So yeah, during the creation of the B-type invoice with nothing yet delivered, you're asked or basically you already have a tax payable so the decision is yours if you want to let the customer pay for it for at least you know at least you have the money that you can pay for the taxes right away when it's due but yeah again the decision is yours but it would be better if you can you know take the payment already okay excellent and then Steve would like to just quickly review the sales tax again.
20:32
He said that he didn't understand the sales tax issue.
20:36
Sales tax issue, what do you mean, like the backend posting?
20:40
Because the moment you create the B-type invoice, your tax is already posted.
20:46
I've showed that earlier.
20:48
When I created the B-type invoice without items being shipped yet, it's already posting to the GST payable.
20:55
So you're already, yeah, you have that as a payable already.
21:02
If you have tax issues other than this, I would recommend you to send in a support ticket because I think it's gonna be a different topic if it's purely tax issues.
21:12
But yeah, I hope that answers the question.
21:16
Okay, and then we've got another one here.
21:19
Would you still be able to print a regular invoice for a customer or will this invoice type have a different type of print layout?
21:27
Very good question.
21:29
That's printing.
21:30
So basically, I haven't checked that one out yet.
21:34
But let's see.
21:36
If I try to print this, yeah, you have to specify the type, which can be done in your form and design invoice designer.
21:50
And then once you've already done that, You can then, yeah, specify your invoice types.
21:57
So say for example, in here, let me just try to pick, yeah.
22:00
So I was prompted with that error because I haven't set any invoice forms yet.
22:05
So you can, let me see if I can add it here.
22:11
Yep, there, just do it like that.
22:13
Choose your form, drag and drop it under B, type invoice.
22:18
And then we close that one out.
22:21
Try to go back here, print.
22:24
And yep, there's the prompt.
22:27
Yep, and we're able to print it.
22:30
I hope that answers the question.
22:34
Okay, great.
22:34
We've got another one here.
22:36
Nicole uses block and move options and wants to know how you would correct them once you have chosen something to move and then altering the dollar value.
22:48
Block and move, that's gonna be a different topic, I'm afraid.
22:52
So, yeah.
22:54
We'll connect with you on that question afterwards, Nicole.
23:00
And then, would you use a B-type invoice in conjunction with a W invoice or switch over to only using B invoices?
23:10
All right.
23:12
It's something that you need to know about these two types of invoices.
23:19
When you say work order or W-type invoices, So, it's a non-posting invoice, so none of the ledgers are posted, but they're already there, but just not posted.
23:28
And also, when adding items to work orders, they're only reserved, so they're not taken out of your inventory yet, but B-type invoices is a posting type of invoice, so the moment you create the invoice, the B-type invoice, all the ledgers are already posted.
23:46
And then once you ship an item, it's the time that the stocks will be taken out of your inventory.
23:55
I hope that answers the question.
23:59
Okay, well, I think we will end it there. That was great. You guys had a lot of great questions today.
24:04
I know a lot of them came in, so if we missed any, please just send us an email and we will get an answer to you.
24:10
And there's a couple, Nicole, and a couple other people we'll connect with after the presentation.
24:17
Next webinar, September 8th, we're discussing touchscreen setup, so you won't want to miss that one.
24:23
And like Eugene said, if you want to rewatch this presentation, it will be available on our website shortly.
24:29
I think it takes like maybe an hour or so to populate, so it will be there.
24:33
Thank you, everybody, for joining us. Thank you, Eugene, for the presentation, and we will see you guys in two weeks.
24:40
All right. Bye, guys. Take care. Keep safe.
Popular Webinars
Share this article on
