Adding a prepayment invoice

Prepayment invoices can be filtered and sorted.

It is possible to filter based on the start/end date, status, buyer and view. View displays whether an invoice is paid, unpaid, partly paid, as well as all invoices. Once you have selected parameters for the filter, you need to click on the ‘View’ button to display the results; if you want to clear the filter, you need to click on the ‘Clear filter’ button. For filtering, you can enter search dates on the start and end date fields. If you enter only the start date, the program will search for entries made on and after the respective date. If you enter the end date, the program will find all entries made before that date. If you enter both the start and the end date, the program will find all entries within that period.

It is possible to sort according to name, date, due date, buyer, amount, paid and unpaid amounts and status.

Prepayment invoices list can be displayed in the program or saved and opened in PDF or Excel.

 

A prepayment invoice can be added by selecting Billing > Sales invoices > Prepayment invoices > Add a new prepayment invoice in the program menu.A new prepayment invoice can also be added by selecting Add a new prepayment invoice from the shortcuts. Already existing prepayment invoices can be opened by clicking on the names of prepayment invoices in the prepayment invoices list.

It is possible to enter default prepayment invoices in the Prepayment Invoices tab; if necessary, sales invoices, credit invoices and price quotes can also be prepared. After saving, invoice will move to the correct tab automatically.

 

A new prepayment invoice can be added by selecting Billing > Sales invoices > Prepayment invoices > Add a new prepayment invoice in the program menu.

 

 

A window opens that contains:

Under General Information:

•      Type – default type is prepayment invoice; however, sales invoices or price quotes can also be created if necessary.

•      PDF template – a selection of various invoice templates. When selecting Settings > General settings > Invoice data, it is possible to set the default template.

•      Invoice date – date can be selected from a calendar or entered manually.

•      Turnover date – date for making an accounting entry in the e-Financials. You can select it from the calendar or enter it manually.

•      Currency – if you would like to create a prepayment invoice in another currency, this allows selecting the correct currency. After selecting a currency, ‘Exchange rate’ row with gross amount in EUR will appear. Exchange rate row displays the exchange rate and date of extracting the rate from the bank. If necessary, exchange rate can be changed; rate that appears automatically must be deleted and the necessary rate entered. In this case, the date disappears. Gross amount in EUR displays the amount in euros (it cannot be altered). (Currencies can be activated in the Active Currencies sub-module of the Settings module).

•      Receivables account – account for receivables.

•      Mark as paid – it can be used to indicate that an invoice has been settled.

Information about the manner of settling an invoice must be entered in the ‘Account’ field: in cash, from a bank account or a transaction with reporting persons.

Date of calculating the invoice is added automatically to the field of payment date; it is possible to change the date.

In order to add the possibility of marking an invoice as paid from a bank account, this feature must first be activated in the Settings module. Go to Settings > General settings > Program settings > Change and select Allow marking as paid by bank account and save.

•      Prepayment invoice contains a trade secret – it is not necessary to declare an invoice that is thus marked in a VAT INF declaration, and it will not be taken into account when submitting a VAT INF.

This option appears on prepayment invoices only if it has been activated in the settings. Go to Settings > General settings > Program settings > Change > select‘Sales invoice contains trade secrets and save.

•      Intra-Community supply – when selecting ‘Turnover of goods in EU’, only products with 0% VAT rate or VAT free products can be added to a prepayment invoice. Invoices with ‘Intra-Community supply’ ticked are automatically included on the VD/VDP declaration by the program. When selecting ‘Intra-Community supply’, buyer’s VAT (KMKR) number must be added. If it has been included on the buyer card, then this field is filled in automatically. When this field is filled in, it becomes possible to check the entered VAT number. When selecting ‘Turnover of goods in EU’, additional choices become available:

•      Installation in another member state

•      Reseller in a triangular transaction

This option is only displayed for an entity that is VAT liable.

 

Under the Buyer:

•      Buyer – required field. Buyer can be selected from a list or a drop-down menu. A new buyer can be added with the ‘New buyer’ button. If ‘Due date/term days’, ‘Delinquency charge percentage per day’ and ‘Reference number’ have been entered on the buyer card, then these fields are automatically filled in after selecting a buyer; however, these can also be changed manually. If the ‘Due date/term days’ and ‘Delinquency charge percentage per day’ differ on the buyer card from the ones on the selected invoice template, then the information of the buyer card is displayed on the prepayment invoice.

•      The place of supply of goods – the country of supply of goods can be selected from a drop-down menu. Default setting is Estonia.

•      Invoice number – it is possible to select invoice series. Invoice series can be selected from the menu: Settings > General settings > Invoice series > Add a new entry. Once you have added a due date in days and delinquency charge percentage to the invoice series card, then this information is displayed on the prepayment invoice; however, if a buyer has a set due date and delinquency charge %, then the information entered on the prepayment invoice is replaced with information on the buyer card.

•      Reference number – recommended field. When adding a reference number, the software can automatically reconcile an incoming payment on the bank statement with the respective prepayment invoice. If a reference number is added to the buyer card, the field is filled in automatically.

•      Due date / term days – an obligatory field that is filled in based on invoice series; however, if a buyer has a personalized due date, then the information on the prepayment invoice is replaced with the information on the buyer card.

•      Delinquency charge percentage per day – an obligatory field that is filled in based on invoice series; however, if a buyer has a personalized due date, then the information on the prepayment invoice is replaced with the information on the buyer card.

•      Internal notes – this is displayed in lists with a green exclamation mark by the invoice name. Internal notes can be used for leaving comments for internal use; this information is visible in the invoice window and is not added to the invoice that is sent to the buyer.

•      Additional information to customer – sales invoices that are sent to the buyer are displayed.

Under Products/Services:

A new product can be added by clicking the ‘Add a new product’ button. Product/service row can be deleted by clicking on the cross at the end of the row. Adding a product/service row is mandatory. Another row for product/service can be added by clicking on the ‘Add a new product/service row’ button.

Products/Services section consists of two tabs: Discounts and Cost/Profit Centers.

Discount tabcan be used for entering the name of a product/service, name on the invoice, amount, unit, unit net price, discount %, discount total, net total and VAT %. Product/service name can be entered by searching or selecting it from the product/service drop-down menu.

Cost/Profit Centers tab– is visible on sales invoices only when the Cost/Profit Centers sub-module has been activated and cost/profit centers added to it. To do this: Settings > General settings > Program settings > Change > select Activate cost/profit centers module.

 

After the required fields are filled in, click the ‘Save’ or ‘Save and confirm’ button.

A saved prepayment invoicedoes not lead to the creation of entries in and of itself. A saved prepayment invoice cannot be found in the Incoming/Outgoing Payments module for reconciling the invoice. In the window of saved prepayment invoice, it is possible to confirm, change, copy and delete an invoice.

Saved prepayment invoice window displays:

•      General information about the invoice: invoice date, turnover date, gross sum, invoice file (visible as a sales invoice in PDF format), existing uploaded paper invoice (it is possible to upload an invoice that was issued earlier).

•      Buyer’s information: buyer, the place of supply of goods, invoice number, reference number, due date / term days, delinquency charge percentage per day.

•      Product/service rows: product/service rows that were entered on the sales invoice are displayed.

 

Confirmed prepayment invoicedoes not lead to the creation of entries in and of itself. Invoice can be sent to the buyer as a digital invoice or e-mailed, it can be copied, and confirmation can be voided.

Confirmed prepayment invoice window displays:

•      General information about the invoice: invoice date, turnover date, gross sum, invoice file (visible as a sales invoice in PDF format), the existing uploaded paper invoice (it is possible to upload an invoice that was issued earlier).

•      Buyer’s information: buyer, the place of supply of goods, invoice number, reference number, due date / term days, delinquency charge percentage per day.

•      Product/service rows: product/service rows that were entered on the sales invoice are displayed.

•      Invoice sendings – once an invoice is sent to a buyer, this section contains information on the manner of sending, time of sending, name of the sender, information of the recipient (name of the entity, e-mail addresses, an operator in case of e-invoice), and the status of invoice sending (sent/rejected) with date and time. This section is only displayed when an invoice is sent to a buyer as a digital invoice or via e-mail.

•      Income of future periods – income can be divided between future periods. When clicking on the ‘Periodize’ button, select the necessary month and year as the period; then click on the ‘Next’ button. A window opens automatically where the sum of the invoice is divided into equal instalments; however, the sums per period can also be altered manually if necessary. Then, click the ‘Save’ button. Now, the section for future period costs displays how the invoice is divided between periods and the field for entries displays regular expense entries. This is not a loan/lease – the invoice is paid in full; however, the revenue is divided into instalments that are displayed over several periods. Future period expenses must be divided according to the matching principle of revenues and costs in https://www.riigiteataja.ee/akt/962347?leiaKehtiv,clause 16 (6).

•      Transactions and settlements – displays transactions and settlements. The existing entries can be opened by clicking on the word ‘View’ at the end of the row.

•      Entries – accounting entries about a respective invoice. The existing entries can be opened by clicking on the word ‘View’ at the end of the row.

 

For confirmed and paid/partly paid prepayment invoices,accounting entries are added. Invoice can be sent to a buyer as a digital invoice or e-mailed, it can be copied, a credit invoice can be issued and confirmation can be voided. A credit invoice for a prepayment invoice can be added only to prepayment invoices with a paid status.

Confirmed and paid prepayment invoices display:

•      General information about the invoice: invoice date, turnover date, gross sum, marked as paid (if this was selected directly on the invoice) invoice file (visible as a sales invoice in PDF format), existing uploaded paper invoice (it is possible to upload an invoice that was issued earlier).

•      Buyer’s information: buyer, the place of supply of goods, invoice number, reference number, due date / term days, delinquency charge percentage per day.

•      Product/service rows: product/service rows that were entered on the sales invoice are displayed.

•      Income by cost/profit center – this field is displayed when the Cost/Profit Center module is activated and cost/profit centers are added. In order to manage cost/profit centers, click the ‘Manage profit centers’ button, which opens an administration window for profit center on a sales invoice. The window that opens displays product/service information, account and invoice sum in an unaltered form; these cannot be changed. Project, location and person can be changed/added by using a drop-down menu that allows selecting between pre-configured profit centers. In order to save, click the ‘Save profit center’ button.

•      Credit invoices created – this section is only displayed if credit invoices have been prepared for an invoice. This section displays credit invoices for a particular prepayment invoice, which can be opened by clicking on the name of the credit invoice. Credit invoice number, date, net sum, gross sum and status are displayed about credit invoices.

•      Invoice sendings – once an invoice is sent to a buyer, this section contains information on the manner of sending, time of sending, name of the sender, information of the recipient (name of the entity, e-mail addresses, an operator in case of e-invoice), and the status of invoice sending (sent/rejected) with date and time. This section is only displayed when an invoice is sent to a buyer as a digital invoice or via e-mail.

•      Income of future periods – income can be divided between future periods. When clicking the ‘Periodize’ button, select the necessary number of months as the period; then click on the ‘Next’ button. A window opens automatically where the sum of the invoice is divided into equal instalments; however, the sums per period can also be altered manually if necessary. Then, click the ‘Save’ button. Now, the section for future period costs displays how the invoice is divided between periods and the field for entries displays regular expense entries. This is not a loan/lease – the invoice is paid in full; however, the revenue is divided into instalments that are displayed over several periods. Future period expenses must be divided according to the matching principle of revenues and costs in https://www.riigiteataja.ee/akt/962347?leiaKehtiv,clause 16 (6).

•      Transactions and settlements – displays transactions and settlements. The existing entries can be opened by clicking on the word ‘View’ at the end of the row.

•      Entries – accounting entries related to the respective invoice. The existing entries can be opened by clicking on the word ‘View’ at the end of the row.

 

Marking a prepayment invoice as paid

To mark prepayment invoices as paid:

•      On the invoice – when activating ‘Mark as paid’, ‘Account’ and ‘Payment date’ rows open. ‘Account’ allows choosing between cash and a reporting persons’ account. If you would prefer to mark an invoice as paid via a bank account, then this option needs to be activated in the settings first. Go to Settings > General settings > Program settings > Change > select ‘Allow marking as paid by bank account’ and save.

•      By uploading an account statement – it is possible to upload an account statement in the Incoming/Outgoing Payments sub-module. E-Financials reconciles prepayment invoices and incoming payments automatically if possible. If a prepayment invoice and an incoming payment are not automatically reconciled, then the incoming payment will remain in an unreconciled status and must be reconciled manually. For this purpose, the unreconciled incoming payment must be opened, respective prepayment invoice be selected under transaction relations and saved and confirmed.

•      If an account statement is not imported, incoming payment must be added manually in the Incoming/Outgoing Payments module by clicking on the ‘Add Manually’ button. Required fields are filled in in the window that opens, and after clicking on the ‘Save’ button, another window opens where it is possible to select confirmed prepayment invoices.

 

Reconciling prepayments when receiving an incoming payment. If a buyer has paid a sum as a prepayment, then this can be reconciled with a prepayment account in the Incoming/Outgoing Payments module. In order to do this, open the unreconciled incoming payment, select a suitable account from the account list, and then click on the ‘Save and confirm’ button.

 

Deleting a prepayment invoice

A saved prepayment invoice can be deleted by clicking on the ‘Delete’ button in the prepayment invoice window. A confirmed prepayment invoice can be deleted by clicking on the ‘Void Confirmation’ button and then on the ‘Delete’ button in the prepayment invoice window. If a credit invoice, settlement or incoming payment is reconciled with a prepayment invoice, then this must be voided first, and only then, the prepayment invoice can be deleted.

 

Adding a credit invoice for a prepayment invoice

In case of a confirmed and paid/partly paid prepayment invoice, it is possible to create a credit invoice by opening a prepayment invoice (click on the name of the invoice) and then clicking on the ‘Create credit invoice’ button. The fields of the type of the invoice, PDF template, buyer and place of supply of goods are filled in automatically and cannot be changed; information on other fields can be altered. If necessary, several credit invoices can be created for one prepayment invoice; however, their sums and quantities of product/service cannot exceed the ones on the original prepayment invoice.

 

A credit prepayment invoice can be created for a partly or a completely paid invoice.

 

•      A credit invoice is created for a prepayment invoice that has already been paid – if a prepayment invoice is already paid and adding a credit invoice means that the sum of the credit invoice must be repaid to the buyer, then open the respective credit invoice in the Billing module and click on the ‘Create credit invoice’ button; a credit invoice is created where some fields can be altered. After the prepayment credit invoice is checked, it should be saved and confirmed. If the sum that the buyer overpaid is kept as a prepayment, then the confirmation of the reconciled incoming payment must be voided and the incoming payment account should be changed from a prepayment account to account 2210 ‘Customer prepayments’. In the future, it is possible to settle this prepayment after adding a new sales invoice; for this purpose, create a new sales invoice/prepayment invoice for the buyer, save and confirm, and reconcile it with the prepayment account via Settlements module > Billing > Settlements. On the one hand, a prepayment account has to be selected for a buyer; on the other hand, a sales invoice/prepayment invoice needs to be added, saved and the transaction confirmed. This diminishes the amount of prepayment of the buyers and changes the status of the new invoice to ‘Paid’.

•      If a buyer does not want to keep the overpaid amount as a prepayment, it can be repaid via buyer card in the program. In order to do this, go to Billing > Buyers/Suppliers > click on the name of the buyer, then click on the ‘Return prepayment’ button in the balances section; a bank payment order for returning the prepayment is added to the Bank Payment Orders module, which can then be uploaded to the bank and paid.

After the payment order is settled in the bank, upload an account statement from the bank or add the respective outgoing payment to the Incoming/Outgoing Payments module manually; the respective payment should be reconciled with the prepayment account of the buyers. Next, accounts 1530 and 2210 should be settled in the respective module. For this, add a new settlement via Billing > Settlements, and enter the sum, buyer whose settlement it is, date of settlement and comment. After adding the new settlement, select 2210 – Customer prepayments – as the debit account and 1530 – Prepayments to suppliers – as the credit account; then save and confirm the settlement. With this settlement, you reduce the balance of both prepayment accounts by the respective sum.

•      Credit invoice is created for a partly paid prepayment invoice:

1.      The sum of the credit invoice is smaller than the unpaid sum of the invoice – the unpaid sum of the invoice reduces by the sum of the credit invoice.

2.      The sum of the credit invoice is equal to the unpaid sum of the invoice – by creating and confirming a credit invoice, both invoice and the credit invoice are marked as paid.