Invoicing for inventory items
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When you invoice a tracked inventory item, Wafeq automatically reduces the quantity on hand and the inventory value of the item in the chosen warehouse by the quantity you sold. Wafeq will recognize the expense of the sold items on the Profit and Loss statement using the average cost method.
Selling Items through Invoices
To reduce the quantity for a tracked item using a sales invoice, go to Sales from the main menu, then select Invoices, and click Create to enter the details.
Choosing the correct warehouse is important because it determines where the sold quantity will be deducted from.
Choosing the correct warehouse is important because it determines where the sold quantity will be deducted from.
Once you select the item, you’ll notice that its default fields—like the price, account, and tax—are automatically filled based on the item information, and you can adjust them if needed.
When you're done, click Save and send to record the invoice and reduce the item quantity from inventory.
The account shown in the invoice is the revenue account linked to the item. This ensures that the income from the sale is recorded correctly, while the item's cost is automatically moved from the warehouse account (Inventory) to the COGS account (Expenses) to follow the matching principle in accounting, ensuring that expenses are only recorded when revenue is earned.
The account shown in the invoice is the revenue account linked to the item. This ensures that the income from the sale is recorded correctly, while the item's cost is automatically moved from the warehouse account (Inventory) to the COGS account (Expenses) to follow the matching principle in accounting, ensuring that expenses are only recorded when revenue is earned.
Inventory quantity on hand will only be updated once the invoice status is “Finalized”. If the invoice is saved as a draft or not finalized, the sold quantity won’t be reflected in stock levels.
Inventory quantity on hand will only be updated once the invoice status is “Finalized”. If the invoice is saved as a draft or not finalized, the sold quantity won’t be reflected in stock levels.
To check the quantity deducted as a result of the invoice, go to the Items list under the Inventory in the main menu.
You’ll find that the Qty on hand field has been automatically reduced by the quantity you just sold.
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