I have a supplier that sends me invoices in advance, with so many days to pay. I want to enter these invoices into my accounting software as soon as they arrive, so I know what my commitment is for the upcoming month. When I pay the invoice (online) the invoice number changes, so it no longer matches what I have in my accounting software.
I found this very confusing and difficult to deal with. I asked the company about it and they said that the unpaid invoice was a 'proforma' and when it gets paid, then it becomes an invoice and the number changes, because its a new document.
To my mind, that's an odd way of doing things - but they are unlikely to change it and I need to work out how best to deal with it.
I use Office Accounting 2009 - which is actually a really nice bit of software but regrettably no longer available. OA doesn't support proforma invoices directly. If I wanted to issue a proforma myself, then I would create it as a sales order, then print it out using the proforma template - but internally it is a sales order document.
But I'm not issuing the proforma, I'm receiving it. Inferring from the reverse process, it seems likely that one way to model this would be to enter a purchase order to represent the received proforma, then convert it to an invoice when the bill is paid. Unfortunately that then means there has to be an intermediate step of a Goods Received Note (GRN) which is wierd (there are no goods, its a service) and it makes the whole process very tedious.
So, lets get to the questions.
What is the validity of what this supplier is doing? Is it normal to issue a proforma? Why wouldn't they just issue an invoice.
How would you deal with this situation in your own books or accounting software?