Need to Invoice before shipping order

(1) Share

Report

Posted on by KateG

686

I need a way I can invoice, and have the customer pay the invoice before shipping the product. It is not a "prepayment" in that the product will have been produced. As soon as it is produced, it needs to be invoiced but may not ship for several weeks. When the customer is ready with the address to ship to, the product will not be invoiced "again".

Any thoughts are appreciated.

I have the same question (0)

All responses (5)

Answers (0)

Sort by

Frank Hamelly | MVP... 46,633 Moderator on at

Like
a
(1)

Report
Copy link

Link copied!

There are a number of considerations with this scenario.

1. Who holds title to the product before it ships?

2. Is there an agreement in place with the customer to invoice prior to shipping? GAAP used to require this to recognize the revenue when a product is "shipped in place". Not sure if it still does.

3. Will the product be picked and packed before or after it's invoiced?

Was this reply helpful? Yes No
KateG 686 on at

Like
a
(1)

Report
Copy link

Link copied!

1. Who holds title to the product before it ships?

Technically the customer who was invoiced. In my mind it had become consignment inventory but no more billing will occur. It will just be shipped.

2. Is there an agreement in place with the customer to invoice prior to shipping? GAAP used to require this to recognize the revenue when a product is "shipped in place". Not sure if it still does.

yes, there is an agreement

3. Will the product be picked and packed before or after it's invoiced?

It is picked and packed for shipment AFTER the invoice.

Was this reply helpful? Yes No
Frank Hamelly | MVP... 46,633 Moderator on at

Like
a
(1)

Report
Copy link

Link copied!

Point 3 will be the biggest challenge in my mind. How do you pick/pack an order after it's been invoiced? I think you're looking at some sort of customization.

Was this reply helpful? Yes No
Ramit Paul 22,809 Most Valuable Professional on at

Like
a
(1)

Report
Copy link

Link copied!

Hi,

After invoicing you cant go back and post packing slip as per design.

Was this reply helpful? Yes No
KateG 686 on at

Like
a
(1)

Report
Copy link

Link copied!

Thanks all. I knew there most likely had to be a customization but was hoping someone might have thought of a way out of the box. Retail has some functionality that could be utilized but no matter what, customization would have to be made. Thanks again.

Was this reply helpful? Yes No