Processing invoices in LoMag software

LoMag is based on 3 independent but integrated modules:

• the Warehouse Module
• the Orders Module
• the Invoices Module

The warehouse and orders modules are described in separate instructions. This instruction is dedicated to the invoice module's functionality. This module may work in conjunction with the orders and warehouse modules.

Depending on the purchased module, the application's window (interface) may have a more or less advanced look. The invoice module window will look like this:

With all three modules, the invoice app will have the following appearance - this instruction has been prepared based on such full option.

NOTE: To enable invoice processing for the demo version, please select "Active modules": Invoices when you run the software for the first time. The setting is also accessible through the menu Programme / Settings wizard

1. Invoice Module

The LoMag Software features the following invoice issuing options:

• Pro forma invoices
• VAT invoices
• Corrective invoices

1.1. Invoicing Settings

VAT

Businesses which are exempt from the VAT tax should change LoMag settings prior to issuing an invoice to exclude VAT calculations. Go to application's setting (), to section, and next in the section deselect this option: and confirm the change with the button. From now on invoices will be issued without the VAT tax deductions - see below

VAT rates

LoMag features 6 default VAT rates, and these are:

• 23%
• 8%
• 5%
• 0%
• VAT exemption (EX)
• Non-taxable (NT)

To set up your own VAT rate use the module available in software's menu ().

Invoicing methods

LoMag software features 2 algorithms for VAT invoice calculations: VAT calculated on net and on gross prices. Most business owners in B2B relations use net prices and in such cases the VAT calculations should include net prices. The VAT tax is rather seldom based on gross proces, e.g. when the tax payer is obliged to use specific government-set prices. LoMag lets you switch from net-based invoices (default) into gross ones. To do this, go to settings (), the tab, and then in the section choose the right invoicing algorithm (see below).

1.2 Issuing invoices

There a few ways to generate an invoice; first - through the button located in the upper menu, where you next choose your document. Alternatively, you can open documents by using shortcut keys - F11 (Invoice), F10 (Pro forma Invoice).

Order-related documents can also be opened with one of the icons of the app's toolbar - see below.

New document window interface for different document types are very similar to each other and have numerous functions; below you'll find a brief outline of specific elements of the interface, and next a more detailed description of some of them follows.

- a field where you adda a contractor to the document. The contractor can be selected from a drop-down list after clicking (for a faster search you may enter first letters of the contractor's name and click the button). Use the function to add a new contractor to your base. By using the button you can print out an address label (e.g. for a letter).

• The contractor field may not be displayed if you turn off this function in the settings.

- the application automatically generates dates of sale, issuing, and payment for the invoice, as well as the number of the generated document (i.e. invoice).

• You can change the issue date of a document and its number; please remember, however, to maintain the right document chronology. When entering past documents start from the oldest one and continue until the latest one.

- setting status and type of payment (e.g. a copy, an original). By default, there are two statues available (paid and due); to set a custom status click . To set a custom payment status click .

- the field allows you to determine the type of a print-out (e.g. a copy/original). The field determines the type of print-out (invoice by default). The field may be used for making on the invoice at hand.

- this part of the interface allows you to save a document in a pdf file (), print it out (), and edit document template (). Learn how to edit a warehouse document with the LoMag editor here. Additionally, you can send an invoice to the contractor's e-mail address by using the button.

- Button for generating a VAT invoice based on a proforma invoice. The function is available only via document.

- buttons for saving or cancelling invoice issuing action.

- buttons for adding new goods to the invoice,

- buttons for editing goods already added to the invoice.

- buttons for deleting goods from the document.

- a button for printing out a list of goods included on the invoice.

- a button for exporting a list of goods of from a specific invoice to an Excel file.

- a button for adding goods from a data collector. (See recommended devices for LoMag warehouse management software)

- a button for importing goods from an Excel file.

- a button for issuing an invoice on the basis of a previously created goods issue note (). This Module is not available for a proforma invoice.

- a button that displays relations between a document at hand and other documents.

1.3. Proforma invoice

The Proforma Invoice () is a document used when selling goods and services, so it confirms the conclusion of a contract of sale, but it has no tax/bookkeeping effects provided for in the Goods and Services Tax Law. It is most often used to pay for transactions without bookkeeping or paying tax until the moment the order has been paid for.

Firstly, to issue a proper proforma invoice you should provide your client. To do this type first letters of his name in the field located in the window (provided the contractor has been previously entered into your LoMag data base) or add a new contractor with the button. A complete instruction on providing and adding contractors to LoMag is in the "contractor" instruction found here.

Next, add goods to the proforma invoice by pressing the button (or by using the "Alt-D" keyboard shortcut).

As an example, let's add to the invoice "Apples" as sample goods using the field and the button (or ). To add the goods to the document it first has to be defined in the goods data file module ().

Next, as you can see above, after determining your goods, you can see its available quantity and the price for which it was purchased. After providing the quantity of the "apples" goods you wish to sale and the price (per item), your gross price will be calculated, which will be your selling price - look below - e.g. You are selling 50 kg of apples for PLN 2.50 per 1 kg (and you paid for it PLN 1 per 1 kg). The gross price will rely on the selected VAT rate, which you can change field. To add goods to the proforma invoice click .

All above values of "net price", "gross price", "VAT rate", and "mark-up" can be pre-defined in the module. After you add the goods to the proforma invoice it looks like this:

If all the goods have been added to the invoice, remember to provide other details like date of transaction (sale, issuing, payment), its status, and type of payment and printout. Next you can print out (), save () and send a proforma invoice to the client by e-mail - the way to do it is explained below.

You have to remember that a proforma invoice has to include correct information about your company (the seller) - you have to provide them in LoMag settings () in the tab.

To send a proforma invoice to your contractor by e-mail, click the icon on the toolbar of the window.

As presented above, first you have to configure e-mail in LoMag settings. To do this go to settings (), and next the tab. If the electronic mail settings have already been configured, the above information won't be displayed, and the process will open the module.

In the tab provide the SMTP data of your e-mails service provider and the address and password of your e-mail account. You can get the SMTP details on your service provider's website. See illustrations with e-mail settings for most popular e-mail boxes in Poland.

E-mail settings for gmail.com

After you provide the data click to go to your document and then click again the button. The window will open.

Make sure the e-mail address of your contractor is correct and send the message by clicking . If the message is sent successfully, adequate information will follow.

After you issue a proforma invoice, save it and close the document window (). When some time later you register a payment for the proforma invoice, you'll be obliged to issue a VAT invoice. To avoid generating an invoice manually in the future, you can find the previous proforma invoice in the module, and next just by clicking () you can generate an adequate VAT invoice.

For example, in the module and on the tab you will find your issued proforma invoice. To open the document, click on it twice with the right mouse button or use the button on the toolbar.

After you open the proforma invoice, click on , which will automatically generate a VAT invoice.

1.4 VAT Invoice

is a document which confirms a sale; unlike a proforma invoice, it leads to tax and bookkeeping obligations as described by the Goods and Services Tax Law. In LoMag software, VAT and the above-described proforma invoices are almost identical, but their legal effects are different. In the module there are two additional functions you won't find in the module - the tool and the tool (available if you use the warehouse module) described in further parts of the instruction.

1.5 Corrective invoice