The document provides an overview of the invoice to cash process, including issuing invoices, managing payments, and reconciling accounts. Key steps include configuring payment terms, issuing invoices from orders or new records, monitoring payments, and reconciling payments through bank statements. The roles of finance and sales are involved in the process of getting paid by customers from invoice through receipt of funds.

1. Openbravo QuickStart 2
User Manual
Chapter 1b – Invoice to Cash
v2.0.1
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Introduction ....................................................................................... 1
Abstract Business Process .................................................................. 2
Roles Involved .................................................................................... 2
Configuration ...................................................................................... 2
Payment Terms ............................................................................... 2
Step by Step ....................................................................................... 4
Issue Invoice ..................................................................................... 4
Creating an Invoice from Scratch ....................................................... 4
Generating Invoices Automatically ..................................................... 5
Retrieving Lines from Orders/Shipments ............................................. 6
Final situation ................................................................................. 7
Send Bill of Exchange.......................................................................... 8
Receive Payment Document ................................................................. 8
Monitor Payments............................................................................... 8
Manage Payments .............................................................................. 9
Receive Cash .................................................................................... 10
Manage Received Promissory Notes .....................................................10
Manage Received Bill of Exchange........................................................ 10
Manage Bank Drafts........................................................................... 10
Remittance ....................................................................................... 10
Anticipated Remittance ...................................................................... 11
Bank Statement ................................................................................ 11
Bank Statement Return ...................................................................... 11
Accounting ........................................................................................ 11
Posting of a Sales Invoice ................................................................... 11
Introduction
The Customer Invoice to Cash process involves the process from the moment the invoice is
created until the moment the customer's debt (payment) is settled/reconciled.

2. Abstract Business Process
The abstract Customer invoice to cash business process is defined by the following diagram:
The process can be summarized in two steps:
• Issuing the invoice
• Managing payments
Roles Involved
The following roles are involved within this process:
• Finance - all of the invoicing and payment collection is done by the finance staff
Configuration
Payment Terms
Payment terms are a very important part of the contract between you and your customers,
as the sales invoice payment will have a due date depending based on it.
To assign a particular payment term to a customer, navigate to the Master Data
Management || Business partner window, select the customer and switch to the
[Customer]:

3. Here, select the desired one using the Payment Terms dropdown. Remember that the
properties configured here will be copied into the sales order/invoice upon
customer selection. However, the user is always able to change them on the level of the
individual document.
Use the Maturity Dates (1, 2 and 3) for setting specific days for the payment due date to
be set.
An example:
John Moneymaker is a customer with a Payment Term of 30 days and Maturity
Date 1 the 20th.
The user creates a sales invoice for this customer. The Invoice Date is
09-SEP-2009 and the invoice Amount is 100EUR. When completing the sales invoice
a scheduled payment will be automatically created related to the customer. This
scheduled payment's Due Date will be 20-OCT-2009.
The Invoice Date is 09-SEP-2009. As the Payment Terms are 30 days the payment

4. Due Date should be 09-OCT-2009, but as the Maturity Date for this customer is
20th, the scheduled payment due date is transferred to the 20-OCT-2009.
Step by Step
Issue Invoice
The Sales role should be used.
There are three ways of creating an invoice:
• Creating one from scratch (in case no previous order/shipment exists)
• Generating invoices automatically
• Retrieving lines from pending orders/shipments to be invoiced
Creating an Invoice from Scratch
Using the Sales Management || Transactions || Sales Invoice window create a new
record:
Fields to note:
• Business Partner - select the customer to be invoiced
• Transaction Document - select the AR Invoice, do not use other options!
Go to [Lines] tab and add one line per product:

5. Fields to note:
• Product - select the product to be invoiced
• Invoiced quantity - quantity of the product to be invoiced.
• Net Unit price - price applied to the product
• Tax - tax to be applied to the product's amount (automatically pulled from product
definition)
• Line Net Amount - Invoiced Quantity multiplied by Net Unit Price. Price of the
line before taxes.
Back in the [Header] click the Complete button.
Generating Invoices Automatically
Navigate to the Sales Management || Transactions || Generate Invoices menu item
that opens a new window. Parameters entered here will describe the invoices to be
generated automatically:

6. Fields to note:
• Invoice Date - date that will be used as the Invoice Date for the generated
documents
• Organization - organization to create invoices for.
• Sales Order - leave blank to consider all sales orders or select a specific one to
generate an invoice for. Note that only pending orders are included inside this
dropdown.
• Business Partner - if none is selected, all business partners with pending invoicing
will be considered. If a specific customer is selected here, only sales order to that
business partner will be considered for automatic invoicing.
Click OK and all orders pending to be invoiced that match the filters defined above will
automatically be invoiced. A Sales Invoice document is created for each. When the process
is finished, a message will be shown with the document numbers of the invoices that have
been created.
To see the generated invoices, use the Sales Management || Transactions || Sales
Invoice window.
Retrieving Lines from Orders/Shipments
Create a new invoice and fill all required fields inside [Header]. For example:

7. Please refer to the Creating an Invoice from Scratch section for description of fields in
[Header].
Then, click the Create lines From button to bring up a new dialog:
The Order and Shipment/Receipt dropdowns will be filled with documents pending to be
invoiced for the business partner of the invoice selected inside [Header]. Usually, the
orders pending to invoice will be selected.
Selecting an order or shipment, the lines pending to be invoiced will be shown below. Select
the desired lines and click OK. The selected lines will be copied into the [Lines] tab where
they can be additionally manually edited (e.g. changing the quantity, unit price, etc...).
Back in the [Header] complete the document using the Complete button.
Final situation
When this process is finished, the original order, the underlying shipment and the final
invoice will all be linked.
For example, each shipment's line will be linked to the sales order line it delivers for.

8. Within the [Lines] of the Goods Shipment window the user can click on the links to drill
down.
Each sales invoice line will also be linked both to the sales order line and the shipment
line it invoices. Within the [Lines] of the Sales Invoice window the user can click on the
links to navigate to either of them.
The original sales order line will also have the Delivered Quantity and the Invoiced
Quantity fields inside [Lines] updated. This way, sales staff can easily see the status of
their orders.
Send Bill of Exchange
This process can be done using a Payment Execution process provided by an Extension
Module. The execution of payments can be tracked from the Receipt Payment window or
using the Payment Execution form.
For more information on how to do this, please refer to the Collection chapter of this
manual.
Receive Payment Document
This process can be done using a Payment Execution process provided by an Extension
Module. The execution of payments can be tracked from the Receipt Payment window or
using the Payment Execution form.
For more information on how to do this, please refer to the Collection chapter of this
manual.
Monitor Payments
Use the Sales Management || Transactions || Sales Invoice window to monitor the
payment status quickly.
Several fields to invoice header to display payment information:
• Total paid - Amount paid for the selected invoice.
• Outstanding Amount - Amount pending to be paid for the selected invoice.
• Days till due - Number of days left to reach the next maturity date. If it is a
negative value it reflects number of over due days

9. • Due Amount - Total amount that has already reached the maturity date.
• Payment complete - Flag indicating if an invoice is fully paid.
• Last calculated on date - Date on which this info was last calculated.
Manage Payments
The Finance role should be used
Payment report is not available yet.
Using the Finance role, go the Financial Management || Receivables & Payables ||
Transactions and using Make Payment and Receive Payments windows and search /
filter payments and have a good overview of the payments available in the system.
Records can be shorted or filtered using the Search button from tool bar.

10. and exported to Excel, PDF or CSV using the buttons from the tool bar.
Receive Cash
Please refer to the Collection chapter of this manual to learn how to perform cash receipts in
the Cash Journal window.
Manage Received Promissory Notes
This process can be done using a Payment Execution process provided by an Extension
Module. The execution of payments can be tracked from the Receipt Payment window or
using the Payment Execution form.
For more information on how to do this, please refer to the Collection chapter of this
manual.
Manage Received Bill of Exchange
This process can be done using a Payment Execution process provided by an Extension
Module. The execution of payments can be tracked from the Receipt Payment window or
using the Payment Execution form.
For more information on how to do this, please refer to the Collection chapter of this
manual.
Manage Bank Drafts
This process can be done using a Payment Execution process provided by an Extension
Module. The execution of payments can be tracked from the Receipt Payment window or
using the Payment Execution form.
For more information on how to do this, please refer to the Collection chapter of this
manual.
Remittance
Please refer to the Collection chapter of the user manual to learn how to create and
manage them.

11. Anticipated Remittance
Please refer to the Collection chapter of the user manual to learn how to create and
manage consolidated remittances.
Bank Statement
Please refer to the Bank Statement to Bank Reconciliation chapter of the user manual
to learn how to reconcile payments through a bank.
Bank Statement Return
Please refer to the Collection chapter of this manual to learn how to create consolidated
remittances and manage its cancellations and returns of payments.
Accounting
There is no specific accounting procedure or configuration that this process requires apart
from the regular business partner and product configuration.
Posting of a Sales Invoice
When a Sales Invoice is posted to the general ledger, a posting will be similar to:
The information of the post is retrieved according to the configuration of:
• Customers Receivables No. account in [Customer Accounting] tab under
Master Data Management || Business partner window
• Tax Due account in Financial Management || Accounting || Setup || Tax rate
window, under [Accounting] tab
• Product revenues account in Master Data Management || Product window
under [Accounting] tab