Need to Invoice before shipping order

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Posted on by KateG

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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.

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Frank Hamelly | MVP... 46,627 Moderator on at

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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?

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KateG 686 on at

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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.

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Frank Hamelly | MVP... 46,627 Moderator on at

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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.

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Ramit Paul 22,803 Most Valuable Professional on at

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Hi,

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

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KateG 686 on at

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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.

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