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Invoices

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In the previous step, you learnt about creating orders and in this step, we will learn how to run invoices for the client.

When a customer places an order, you can create an invoice to bill them for the upcoming sale.

For organisations that use other fulfilment systems like Enterprise Resource Planning (ERP) solutions, Dynamics 365 for Sales via CDS for Apps can integrate with the ERP system to use invoices to pass information to the ERP system for accounting and tracking. You can choose to use invoices with or without an integration.

Typically, you convert an order into an invoice. However, you can also create an invoice that does not originate from an order.

Create an Invoice from an Order

You can create an invoice from an order or from the invoices area. Invoices are a natural conclusion to the sales order process but can be created as standalone records as needed.

Screenshot showing how to create a new invoice

To add products from your opportunity to your invoice, select Get Products at the top of the screen, select the opportunity, and then select OK. If you have created this invoice from an order, the products associated with the order will be visible on the invoice automatically.

If a billing or shipping address was added to the order, these fields would automatically appear on the invoice. If this information wasn’t entered on the order, click the lookup address button to select the customer’s address to use for the invoice.

You can select which of the customers addresses to use for the invoice. Update the bill to address and ship to address fields to specify if you would like the address selected to be copied into these fields on the invoice record, then click add address.

If the invoice has a bill to address that is different from the ship to address you can repeat the process or manually type the address on the invoice record in the addresses section. The lookup address feature improves data entry accuracy and efficiency.

Screenshot of “Look Up Address” feature.

Review the contents of the invoice and make any additions or corrections before sending to your customer. You close an invoice as paid or cancelled.

Considerations

The invoice and all its line items must use the same currency. For example, if your invoice has the currency set to US Dollars, you must use the same currency for the price list items that you add to the invoice. You can’t change the currency of the invoice unless you remove all the line items associated with the record.

Similarly, if the invoice is created from an order and quote that originated from an opportunity, the invoice must have the same currency as the original opportunity.

You need to enter the tax amount when you add a product to a quote, order, or invoice. Dynamics 365 for Sales doesn’t automatically calculate tax for individual products. However, the total tax is calculated automatically based on the sum of the tax amounts for all the individual products in a quote, order, or invoice.

If pricing has changed during the course of the sale, you can click the use current pricing button to update the product lines pricing to match the current prices on the price list. If you make any manual changes to the invoice click recalculate in the command bar.

In the following step, you will enjoy a practical experience of creating and managing orders and invoices in our third Hands-On Lab.

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