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SAP Business One Sales Process: AR InvoiceWhile it can be said that the delivery of goods or services to the customer is the final stage in the sales process, there is however a subsequent step that sales professionals must take in order to finalise a sale. This step involves the creation of an A/R invoice and the posting of a payment to SAP Business One. By issuing an A/R invoice you are requesting a payment from the customer which in turn is then received and posted to the customers Master Data record.

In SAP Business One, the A/R invoice is the only document that is mandatory in order to complete the sales process. The A/R invoice streamlines the sales process as it contains all of the required functions found in both a sales order and delivery document. It lists the inventory items bought or services used, discounts issued and delivery information. You can create an invoice directly by selecting Sales – A/R -> A/R Invoice or from a single or multiple sales quotations, sales orders, or delivery notes.

Once posted, the A/R invoice posts a journal entry to the corresponding customer and revenue accounts and records the revenue in the profit and loss statement. In cases where a delivery document is not referenced for an A/R invoice with inventory items, the A/R invoice also decreases inventory values. The inventory account is credited and the cost of goods sold account is debited based on the current item cost in addition to the postings to customer and revenue accounts.

Once a payment has been recorded, the sales process for a specific product or services has been completed. The process begins once again when a customer requests additional products or services or if a new prospect is entered into the system.

To learn more about A/R Invoices in SAP Business One, watch the "Sales Process Basics in SAP Business One," weekly webchat hosted by Vision33 TOTAL Care Manager, Carl Lewis, below and fast-forward to 32:44. You can also click the video below to view the webchat in its entirety and watch and listen as Carl provides in-depth examples of how each stage is executed using true-to-life business scenarios.