Processing Invoices

Invoices and the Books

Before January 1, 2010, invoiced donations and sales were not entered into the books until they were paid. This has been changed. Now all invoices are to be entered into the books as income as of the day they were created.

Creating invoices in the books

• When entering the dailies into the books, note if there are invoiced amounts. If there are, go to the date and search for payment type of invoice. This will need to be done separately for sales and donations.
• Create an entry in "Assets:A/R:Invoices" for the amount of the invoice, creating separate lines for the income portion for fees, pickup fees and invoiced donations, for donations. Generally those first two are the ones which will be used most often for donations. Sales will usually only go to a invoiced sales line. It is very important for these income lines to be accurate.
  • Pickup fees go in Income:Fees:Pickup fee
  • Monitor fees and similar fees go in Income:Fees:Fees, Invoiced
  • "Suggested" contribution amounts go in Income:Contributions:Regular Donations:Invoiced Donations
  • Sales amounts go in Income:Sales:Retail:invoiced sales
  • If the income is of some type other than those above, it needs to be listed as the appropriate type in the books.
• Make sure that the number field has the transaction id of the invoice.

Resolving

• Payments for invoices can come in several different ways. They can be paid at the front desk, on paypal, or through a check in the mail. The first step for the bookkeeper is identifying the payment as an invoice.
• At the front desk, the payment should be noted as "cash in" and be accompanied by the invoice number on the till worksheet
• Checks coming in the mail should always be checked for an invoice number or compared against the list of outstanding invoices
• Paypal donations should be checked to see if they have an invoice number or if they list donated items.
• Checks and paypal donations often come from some name other than the one on the invoice
  • Andre Hage == New Edge Networks
  • Don Rasmussen == Mercedes Benz of Portland
  • Janice Totten == City of Portland
  • Chip LaRouche == several different Lake Oswego sources

Database

• Go the invoice database entry. Note how the payment came in and the amount in the comments field, and put the date the payment was made in the "date resolved" field. If the amount is different than the original invoiced amount, note that in the comments field.
• If there is anything peculiar about the payment, like the name on the check being different than the contact for the invoice, note that in the comments field for the contact so we will have an easier time next time.

Books

• The check or paypal donation increases the relevant asset (safe or paypal account), the credit line should reduce the Invoices receivable account. If the amount of the payment is larger than the original invoice, credit the difference directly into "Income:Contributions:Regular Donations:Invoiced Donations"
• Make sure that the number field has the transaction id of the invoice.