Revenue & Invoicing
Order-to-Cash always issues an invoice, but when revenue is recognised depends on company policy. Getting this wrong double-counts AR or revenue.
Apps involved: Sales · Finance · Accounting · Inventory for shipment-based recognition
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If revenue was already booked on the sales order, the invoice must post net (receivable vs. the unbilled/revenue already recognised) — not a second full revenue hit.
Policies you will see
| Policy | Revenue on | Typical use |
|---|---|---|
| On order | Confirm sales order | Services, digital, or “bill later” goods |
| On shipment | Each delivery | Physical goods, partial shipments |
| On invoice | Issue invoice | Simple trading companies |
Partial and multi-order billing
- Partial invoice: bill some lines or quantities; remaining stay open on the order. On-order revenue already booked is not duplicated.
- One delivery, many orders: a delivery can cover several sales orders; the invoice is still split per sales order so AR and revenue stay attributable.
Cross-app hand-offs
| From | To | When |
|---|---|---|
| Sales order confirmed | Revenue journal | Policy = on order |
| Delivery shipped | Revenue journal | Policy = on shipment |
| Invoice issued | AR (and netting) | Always |