Concurrent Invoicing..

[anniesdad]

Do I have to have concurrent invoicing ie. Invoice No. 001, 002, 003 etc etc

Or.

Can I generate an invoice using my customers file reference number. Ie. Mr Smith is file number 1165. Could I (by using mail merge in Word), pull out his reference number and for arguments sake, display as the invoice number. INV1165. I understand by doing it this way, I may have invoice numbers going all over the place but it is by far the simplest way to do it.

Any advice much appreciated.

Steve

[Plotloss]

Why not have an amalgam of both approaches?

First invoice for Mr Smith would be:

1165/001

[Don]

The only thing that's really necessary about invoice numbers are that they are unique IIRC.

[anniesdad]

Plotloss said:

Why not have an amalgam of both approaches? First invoice for Mr Smith would be: 1165/001

I can do this no problem, but does Mr Smith have to be 001 and Mr Jones 002, then Mr P. Head 003 etc

Or

Can they be;

Smith - 1165/001
Jones - 1287/001
P. Head - 1543/001

[anniesdad]

Don said:

The only thing that's really necessary about invoice numbers are that they are unique IIRC.

I've factored this in, and they will be unique. But is it OK to do it my preferred way?

[Eric Mc]

I always prefer to use my own numbering system when entering suppliers' invoices in my book-keeping records. I sometimes enter their original number in the "reference" or "memo" box or column so I can trace their original invoice or quote their reference back to them without having to dig out the original invoice.

It depends to some extent on how you file supplier invoices. Some businesses file all the invoices from individual suppliers in batches or files related to that particular supplier. I prefer to put my own number on the invoices and file them in that number order in lever-arch files. The invoices are then entered onto my system in strict numerical order using the numbers generated by me. In that way, the lists produced by my computer match the order in which the invoices have been filed - making them dead easy to locate in the original file.

[Don]

anniesdad said:

Don said: The only thing that's really necessary about invoice numbers are that they are unique IIRC. I've factored this in, and they will be unique. But is it OK to do it my preferred way?

I know we do and have been audited for the last ten years with it being OK. So yes - I'd say its OK.

Always seek professional advice...usual disclaimers....absolutely no responsibility...shark infested custard


>> Edited by Don on Monday 22 November 14:42

[anniesdad]

Thanks to all,

So either approach is acceptable with Eric's preferred method being the chronological numbering with individual reference number entered seperately in the books.

[Davel]

Your accountants may prefer a consecutive numbering system to avoid any confusion later and it can also be easier when filing numerically.

If there's ever a query on your sales ledger, it may be easier to trace the invoice.

[simpo two]

anniesdad said:

Can I generate an invoice using my customers file reference number. Ie. Mr Smith is file number 1165.

Then his invoices could be 1165/1, 1165/2, 1165/3.

I use a method copied from my last place of work - the two digits of month, last digit of the year followed by a 4-digit number. Hence any invoices raised this month will be 114/xxxx. 114 instantly tells me it was done in November 2004.

I guess it just depends how you want to slice the pie.

[manek]

I use a four letter code derived from the name of the client plus a unique invoice number, eg PIST789, then BLIA790...

PS: Shouldn't that be consecutive invoicing...?

>> Edited by manek on Tuesday 23 November 15:59

[JonRB]

If I'm working through an agency I always use "AG-CL-N" where AG is a (preferably) 2-letter unique abbreviation for the name of the agency, CL is as AG but for the client, and N is a sequential number.

So "SA-SC-003" would be the 3rd invoice I'd generated for Some Agency Ltd. and Some Client Ltd.

Don't know if that makes sense, but works for me.

[anniesdad]

JonRB said:

If I'm working through an agency I always use "AG-CL-N" where AG is a (preferably) 2-letter unique abbreviation for the name of the agency, CL is as AG but for the client, and N is a sequential number. So "SA-SC-003" would be the 3rd invoice I'd generated for Some Agency Ltd. and Some Client Ltd. Don't know if that makes sense, but works for me.

makes sense. Wouldn't fit our procedures though.

[anniesdad]

manek said:

I use a four letter code derived from the name of the client plus a unique invoice number, eg PIST789, then BLIA790... PS: Shouldn't that be consecutive invoicing...? >> Edited by manek on Tuesday 23 November 15:59

english. never were me strong poynt.

[Eric Mc]

I thought you were asking about how to number your suppliers' invoices - not your own sales invoices.

[shirepro]

I say don't put invoice numbers on at all, makes for a great and interesting year end! Just bank cheques without filling in a paying in book, don't reconcile cheques and invoices, change invoices at will, forget to invoice bits, tear up odd cheques and make cheques payable to third paties instead of the invoicing supplier, all just to keep your accountant on his toes (eh Eric?).

[anniesdad]

Eric Mc said:

I thought you were asking about how to number your suppliers' invoices - not your own sales invoices.

Thanks Eric,

Its actually sales invoices.

[Eric Mc]

Oops - ignore everything I said. Actually, don't ignore everything I said. it's still valid for Purchase/ Supplier Invoices.

My method of numbering sales invoices is again, strictly numerical. If you think that your sales invoices will not exceed 999 in the year, I set a block beginning 001 and ending at 999. Obviously, if the invoicing is going to exceed 999, the block is set 0001 to 9999. I then place a two didgit number in front of the invoice to represent the financial year end of the business. Therefore the 24th sales invoice issued by a company with a year ended 31 March 2005 would be 05/024 and so on. By placing the year related didgits at the beginning, it means that the sales numbering can be reset at the beginning of each financial year and you don't end up with silly numbers like "5589451".

Shirepro - I know someone who did that. He escaped a 6 month prison sentence by the skin of his teeth - but did get fined £500,000.


>> Edited by Eric Mc on Wednesday 24th November 08:59

[anniesdad]

Eric Mc said:

Oops - ignore everything I said. Actually, don't ignore everything I said. it's still valid for Purchase/ Supplier Invoices. My method of numbering sales invoices is again, strictly numerical. If you think that your sales invoices will not exceed 999 in the year, I set a block beginning 001 and ending at 999. Obviously, if the invoicing is going to exceed 999, the block is set 0001 to 9999. I then place a two didgit number in front of the invoice to represent the financial year end of the business. Therefore the 24th sales invoice issued by a company with a year ended 31 March 2005 would be 05/024 and so on. By placing the year related didgits at the beginning, it means that the sales numbering can be reset at the beginning of each financial year and you don't end up with silly numbers like "5589451". Shirepro - I know someone who did that. He escaped a 6 month prison sentence by the skin of his teeth - but did get fined £500,000. >> Edited by Eric Mc on Wednesday 24th November 08:59

Your system makes perfect sense.

Cheers

[shirepro]

I use the first 4 letters of the name,/consequetive invoice number/year, so Smit/013/04. Thankfully I don't have hundreds of customers or suppiers. I pay my suppliers on the day the invoice comes in, sio no tracking required and then put the cheque number on their invoice with the date paid and file it straight away. They like it, and I can quit worrying I will forget to pay it. I then cross reference cheques with suppliers on my monthly spreadsheet. A bit (lot) bureaucratic and doesn't help cash flow but I can always find stuff, sleep at night and never leave a supplier angry.