How do I handle Pro Forma Invoicing within Acctivate?

A company may need to invoice a customer prior to shipping goods. This is commonly referred to as "Pro forma" invoicing. Although Acctivate has no Pro forma invoicing function built in, Acctivate does offer an alternative method of handling this.

Ever so often, a company may want to charge for goods or services prior to shipping or providing said goods or services. In accounting, this is referred to as a "Pro forma" invoice. Common uses of these invoices are for manufacturing companies who may want to collect before beginning the assembly or delivery of goods. Although there is no Pro forma system built into Acctivate, Acctivate does offer some methods of achieving this. 

Scenario:

Southwestern Industries manufactures Executive Work Tables for businesses. Manufacturing is done in a Just In Time (JIT) fashion, meaning Southwestern Industries does not manufacture the tables until demand (an order) is generated. Because of this, Southwestern Industries requires payment prior to the production and delivery of goods. To handle this, Southwestern Industries can use the Customer Payment Window functionality within Acctivate to meet this need. Let's take a look at what the process would look like.

Solution:

Handling a Pro forma Invoice for Southwestern Industries can be broken down into a few easy steps:

  1. Create a sales order like normal, adding and scheduling product like normal. If this is an order is which Product is not available yet due to Backorder or manufacturing, we'll leave the quantity on Backorder.
    1. (Optional) If this is a sales order that requires assembly products, we can generate a work order directly for this order with the required quantity pre-filled by clicking Create Assembly Session
  2. Print or email the "Order" form to the customer by clicking the print Icon and selecting either "Print Order" or "Email Order." This can be used as a Pro forma Invoice.
    1. If you're wanting the title of the form to be changed to reflect "Pro Forma Invoice" or have other minor changes made, reach out to the support team, we can help make that change for you.
    2. If you're wanting a fully custom Pro forma Invoice form, we encourage you to reach out to one of our partners to have a form created for you.
  3. Create a Payment for this order, by selecting Create Payment. You can also hit CTRL + Shift + Y to create a payment. 
    1. Create Payment
  4. The "Enter Payment" window will open, pre-filling the Order number in the memo field as well as the Customer. We can then enter the payment amount for the order in the "Payment Amount Field." For our order, the total is $475, so we'll enter $475 as the "Payment Amount."
    1. Payment-2
    2. Important: If the customer is paying by Credit Card or eCheck, be sure to charge the payment here as Acctivate will be unable to charge this later.
  5. Click "Save." We'll receive a prompt stating that the overpayment is being left as a credit. Click "OK" to confirm.
  6. We can then perform any of the following Optional Order Steps:
    1. (Optional) Mark the Order as paid either with the use of a Custom Field, Workflow Status, reference, etc. In Southwestern Industries case, they use a custom workflow called "Paid, Pending" to determine if an order has been paid.
    2. (Optional) Once Production is completed, the scheduled quantity will update on the order automatically. If this was a normal backordered order, we can also use ActionReset Scheduled Quantities to reset the scheduled quantities. 
    3. (Optional) Use mobile to pick the product if needed.
    4. (Optional) Use Packaging Manager to ship product or use a shipping workstation integration to fulfill shipment of goods.
  7. Once our goods are shipped, we can now "Create Invoice" for this order to complete our transaction and reduce our inventory. To apply our previous payment to this invoice, we'll click the "Available Credits" button within the Invoice window and check off our credit for application.
    1. Credit-3
    2. Apply Credit
  8. Verify everything on the Invoice looks good (ensuring to verify our credit was applied.) Once we're ready, we can click "Invoice" to complete the order.
    1. Applied

Once we click Invoice, we're done! The Product has been successfully deducted from our inventory and is on it's way to the customer.


Thanks to the power of Acctivate, we can make this process as simple or robust as desired. We can have custom workflow statuses to indicate production, paid, ready to ship, etc. We can use custom fields if desired for data storage. We can have custom invoice forms for Pro forma Invoices and much much more!