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You can consolidate several vendor bills, purchase orders, purchase returns, and purchase journals into a consolidated vendor invoice for payment instead of issuing payments for the separate vendor transactions. You can also consolidate customer invoices, sales orders, sales returns, and sales journals into a customer consolidated invoice that you can send to the customer.
You can create two or more consolidated invoices on the same day for a customer or for a vendor. After consolidated invoicing for a customer or for a vendor, you can pay the vendor or receive payment from the customer and settle the consolidated invoice for the amount of the payment. Consolidated Invoice Example covers charges of multiple subscriptions into a single transaction. It can be paid using a credit card, ACH, or direct deposits.
The Following Calculations Are Performed For A Consolidated Invoice:
- Invoice Amount
- Due Date
Calculating The Invoice Amount For A Consolidated Invoice
- Previous invoice amount – The total invoice amount for the previous consolidation period.
- Previously paid amount – The total amount paid for the previous consolidation period.
- Adjustment amount – The adjustment amount for the previous consolidation period. The adjustment amount includes cash discounts and bank charges.
- Outstanding amount – The total outstanding amount for the current consolidation period.
- Invoice amount during consolidation period – The total invoice amount in the current consolidated invoice. This amount includes the sales tax.
- Total invoice amount – The new total invoice amount for the current invoice.
Calculating The Due Date For A Consolidated Invoice
Invoices are consolidated each month, based on the consolidation day that you specify for each vendor or customer. With Consolidated Accounting Services, this consolidation day determines the day and period for which invoices are consolidated, and the date that payment is due. You can make the most of such capabilities to clear payments as and when required and ensure robust accounting.
Benefits of Consolidated Invoicing
By leveraging the core capabilities of Consolidated Bookkeeping, business administrators can streamline invoicing processes with a single payment for customers. It also helps improve cash flow by preventing delays and missed payments. You can make the most of Consolidated Invoicing to recognize and maintain multiple revenue streams as well. These capabilities eliminated errors induced from manual entries and drive effective scalability, too.
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