How To: Process a Proforma Invoice payment

Table Of Contents

Before You Start
When processing payments for Proforma Invoices, it is important that the correct tax point is recorded.
HM Revenue & Customs states that the tax point occurs when either:
  • The goods are supplied, or
  • Payment is received,
whichever happens first.
Khaos Control supports this requirement by allowing the tax point to be set when the Sales Invoice is printed.

Before You Start

Ensure the following setting is enabled:
Invoice Date based on when invoice was printed
Important: If you change this setting, Khaos Control must be restarted before the change takes effect.

Step 1: Convert the Proforma Order to a Sales Order

  1. Locate the Proforma Order and open it in the Sales Order screen.
  2. On the Order Details section of the Main tab, change the document type from:

      Proforma Order
      
      to:

      Sales Order

Press Ctrl+S or click Save.

Step 2: Print the Sales Invoice


Print the Sales Invoice on the same day payment is received.

This should be done even if you would not normally print the invoice at that stage of the order process.

Important: Printing the Sales Invoice and confirming that it has been printed sets the tax point date in Khaos Control.

Step 3: Release the Sales Order


Allow the Sales Invoice Manager to process the order by moving it from:


to:




This allows the order to continue through the normal invoicing and fulfilment process.

Step 4: Record the Payment

Record the payment as soon as the funds have been received.
Ensure the payment details match the amount paid by the customer.

Step 5: Allocate the Payment

Finally, allocate the payment to the Sales Invoice that was printed in Step 2.
This ensures:
  • The invoice is correctly marked as paid.
  • Customer accounts remain accurate.
  • VAT and tax reporting use the correct tax point date.

Summary

To process a Proforma Invoice payment correctly:
  1. Enable Invoice Date based on when invoice was printed.
  2. Convert the Proforma Order into a Sales Order.
  3. Print the Sales Invoice on the day payment is received.
  4. Release the order through the Sales Invoice Manager.
  5. Record the payment.
  6. Allocate the payment to the Sales Invoice.
Following this process ensures the correct tax point is recorded and helps maintain accurate VAT and accounting records.

See Also


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