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 you create a consolidated invoice 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.

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. This consolidation day determines the day and period for which invoices are consolidated, and the date that payment is due.