TBA Foundation · Lesson 7 of 9 · about 3 hours
After this lesson you can #
- Take a job from quote to payment.
- Say what the books record at each step.
- Handle a payment that is too large, a mistake, and a bounced check.
- Explain how sales tax is decided and how recurring invoices work.
Why it matters #
This is the main loop of most businesses: win the work, do it, bill it, get paid. Doing it correctly in TBA means your receivables, revenue and tax are right without extra effort.
Read #
- Sales/Service Overview
- Sales/Service articles (quotes, orders, invoices, payments, recurring invoices)
- Credit Memos
The big picture #
A quote is an offer; when accepted it becomes a sales/service order, which becomes an invoice, which a payment settles. Saving an invoice records a receivable and the revenue (plus any sales tax owed). A payment is applied to one or more invoices; the part not applied stays as a credit for the client. Received payments sit in Undeposited Funds until you make a deposit. To correct an invoice for the wrong client you void it and enter a new one. If a check bounces, record it as NSF so the invoice is owing again. Sales tax comes from the tax codes involved and how the goods are delivered, and an order can override it. Recurring invoices are created for you on a schedule and can charge the client automatically. Orders and invoices can be emailed from their pages.
Try it #
- In a demo company, create a quote, turn it into an order, invoice it, and apply a payment.
- Apply an overpayment and find the leftover credit.
- Void an invoice and look at the ledger.
Check yourself #
Can you say what the books record when an invoice is saved, and what happens to the part of a payment that is not applied? A practice quiz and certification exams are planned for a later release.
