Proper Sale Cycle + Problem with them

Hello there,

We have a problem with the Sales Cycle that we noticed after the latest update ( ERPNext: v9.1.5 (master)).

Let say we are making a “Sales Order” so the order is “To deliver and bill” now the customer prepays for this order, so from inside this order we go “make” → “Make payment” and put the whole amount of the order. The money goes to the corresponding account just fine but the Order still shows “To deliver and bill” and even though the customer have payed for the order in his profile it has the order price as an outstanding amount.

The normal way should be after the payment the order description should change to “To deliver” and the customer shouldn’t have any outstanding amount coming from this order and if i remember right this is how it use to work.

As a solution we tried to make an invoice without the “update stock” checked and the Order now changes its description to “To deliver” but now things are messed as we have an invoice that didn’t update the stock and an order that is waiting a delivery note ? so its closed ?

Please help us solve this situation.

Thanks in advance.

I’m not sure that’s how ERPNext was configured before. There are three parts to a transaction. Delivery, Invoice and Payment.

So when your customer pays you before you ship, you record it as a payment and click on the appropriate box to indicate it’s an advance amount. You have received the payment all right, but you still have neither shipped the item to the customer and nor have you invoiced the customer yet.

Maybe you were using the POS option before where you used to do an Invoice with Update Stock checked and also recorded the payment.

That’s the only way, as far as I know, you can complete all three parts in a single transaction.

Based on the information you provided, it appears that ERPNext is behaving the way it is designed.

Please let me know if I am missing something.



Hello Jay,

Thank you for the fast reply.

Something must be wrong here and let me explain. When you do a sales order, if you go into the order there is a “make” button next to the “status” button at top right. If i do “make payment” the its obvious that this payment is for this order and it is an advanced payment. Also there is the Status of the order that at beginning is to “Receive and bill” there is also the status of the Order that start at 0% Received 0% Billed.

So if the make payment doesn’t change the % Billed then who does ? Its an error that must be fixed.

Thanks in advance.

I’m not sure that just because an organization received payment from a party, we can assume that delivery is complete.

Like I said there is a way to do that and that’s the POS Invoice.

The cycle works the way it is supposed to, for most other organizations and we are not likely to change it.

You are welcome to do your own customizations though, to accommodate your specific need.

If I am missing something, please let me know.



Noone said that the payment should change the status to complete if it isn’t complete.

I think you didn’t understand what im saying and i will try to explain again.

For the order to be complete there are 2 parts, the billing and the delivery part. If for an order we make a receipt with the half number of products that was in the order then the status changes to 50% received

, which is right. Ok till here ?

If on the other hand we make a partial or full payment for this order then we don’t have a change in status which is wrong. If we do a 50% payment the “To Bill” - Grand Total amount should be half and if we do a full payment the status shouldn’t include the “To Bill” statement plus the customers profiles shouldn’t have any outstanding amount.

Are you trying to say that you need a report that shows the status of the payment so that your shipping department can decide whether it is appropriate and safe for your organization to ship?

The flag doesn’t say anything about the payment in the Sales Order. The payment flag is incorporated into the Sales Invoice.

So it is unlikely that you will get what you are looking for in terms of payment status flag on the sales order, but a simple report should give your people the list of Sales Orders for which payment have been received.

Apologies if I’m unable to understand your situation. Please be patient and work with me and the community. We are a global community and sometimes the culture and language and the choice of words does play a role.



Strictly speaking, the sale is not existent at sales order stage. In fact, there’s no accounting entry when a sales order is created. The payment you made against the sales order is going to be recognised by ERPNext as an advance payment but not as a sale.

As a remedy, you can simply do a stock reconciliation to adjust the stock.


I think you are right, as the amount appears in the customer or suppliers profile with a minus “-” sign in front.

So my question is, what does the “To bill” means in the order status ? When this order is billed ? Is it after a receipt, an invoice ? I was thinking that by bill “you” mean “payed”

And lastly what is the right workflow after an order ? Is it right to make a receipt or right away an invoice ? and if you already made an advanced payment as you said for the order when you are making an invoice are you selecting “is paid” ?

Thanks for the help !

“To Bill” means the invoice has not been invoiced.

After an Invoice and Receipt

It depends on your business. Usually, after the sales order, you make the delivery of the goods ordered usually backed up with a delivery note. Once the goods have been delivered, you send an Invoice to the customer and then receive payment. In your case where you require an advance payment, the steps you took where fine. However, you were not supposed to uncheck “Update Stock”.

Thank you very much Tundebabzy.

Do you know what will happen if first I do a receipt and then an invoice with update stock checked ? Is it going to double charge the warehouse ? Or is a mechanism that check’s for previous receipts ??

ERPNext will not allow you save the invoice if you check “update stock”.

@teamzf refer customer credit balance report. It will reflect correct amount. When we do payment against sales order a GL entry gets done. Credit balance report gives outstanding amount which is summation of GL entry + outstanding sales order + outstanding delivery notes.

@ashish-greycube thank you for clarifying this.
I have one more question though:
Our customer credit balance report is empty but we have Accounts Receivable Summary with outstanding amounts. How is the customer credit different than the Accounts receivable ?
Is the credit an amount that he or we owe (- or +) that isn’t connected with an order invoice etc?
And if yes what process can result in a customer credit ?

Thanks in advance.