> ## Documentation Index
> Fetch the complete documentation index at: https://www.adorabl.info/llms.txt
> Use this file to discover all available pages before exploring further.

# Invoices & adjustments

> Create, post, and adjust customer invoices.

Invoices record revenue and open balances in accounts receivable. adorabl supports draft-and-post invoicing, first-class credit and debit memos, write-offs, and full-invoice credits — all from the **Invoices** list and individual invoice records.

Invoices for shipped goods are created for you: when a fulfillment ships in full, adorabl creates the AR invoice from the shipment automatically. Manual entry is for service and non-stock billing, memos, and corrections. See [Invoicing from fulfillment](https://www.adorabl.info/commerce/sales-orders-and-fulfillment.md#invoicing-from-fulfillment).

## Prerequisites

Before you create invoices:

* [Customers](https://www.adorabl.info/accounts-receivable/customers.md) exist for every bill-to account you invoice.
* [Finance setup](https://www.adorabl.info/books/setup/finance-setup.md), [System accounts](https://www.adorabl.info/books/setup/system-accounts.md), and [Fiscal calendar](https://www.adorabl.info/books/setup/fiscal-calendar.md) are complete so posting hits the right GL accounts and open periods.
* **Items** or revenue GL segments are available for invoice lines — see [Items](https://www.adorabl.info/products/items.md) and [Chart of accounts](https://www.adorabl.info/books/chart-of-accounts.md).
* Invoice numbering is configured in [Next numbers](https://www.adorabl.info/admin-and-settings/next-numbers.md).

| Prerequisite | Why it matters |
| - | - |
| Customer record | Drives terms, bill-to, and AR subledger tie-out |
| Open fiscal period | Closed periods block posting when cutoff enforcement is on |
| Revenue / AR accounts | Lines need valid GL coding before post |

## Invoice statuses

| Status | Meaning |
| - | - |
| **Draft** | Editable; no GL impact until posted. Drafts display as **Draft invoice** — the invoice number is assigned when you post. |
| **Open** | Posted; balance due remains |
| **Partial** | Posted; some payment applied, balance remains |
| **Closed** | Fully applied and locked; automatically set once incoming payments (or credits) cover the invoice amount. This status was previously labeled **Paid** — settled documents stay active for reporting, so the label reads **Closed**. |
| **Void** | Cancelled posted invoice (reversal posted) |

**Save** is disabled when there are no unsaved changes, preventing accidental re-posts.

## Create and post an invoice

**1. Open Invoices & Adjustments**

1. In the sidebar, open **Accounts Receivable**.
2. Click **Invoices & Adjustments**.

The **Invoices** list shows every AR transaction — invoices, credit memos, debit memos, and write-offs — with **Transaction No.**, customer, amount, **Transaction Date**, due date, type, status, and optional payment-prediction hints. Filter by **Type** to see only memos.

> [!NOTE]
>
> Credit memos, debit memos, and write-offs are first-class transactions you create from the Invoices list with **New Transaction** and edit like an invoice. The separate **Adjustments** tab has been retired.

**2. Create a new invoice**

Click **New Transaction** and choose **Invoice**.

adorabl opens an invoice record with:

* **Transaction type** (Invoice, Credit Memo, Debit Memo, or Write-off)
* **Customer** selector (required)
* **Terms** (required) — filled from the customer's default terms, or from the sales order when you invoice from one. Change it on the invoice if this transaction differs. adorabl will not save an invoice without terms, so the **Due date** and any cash discount date are always derivable.
* **Invoice date** and computed **Due date** from the terms
* **Cash discount date**, calculated from the terms code when it carries an early-payment discount (for example, 2/10 Net 30)
* Optional **Transactions to Apply** grid when you bill from sales orders or shipments instead of entering lines manually
* Line grid for items, description, quantity, UOM, unit price, and revenue GL segments

When a cash discount applies, the invoice header also shows **If Paid Today** — the open balance minus the discount percent. The figure only appears through the cash discount date; after it lapses, or on credit memos and voided invoices, adorabl displays the full open balance.

**3. Bill from sales orders or shipments (optional)**

Shipped stock lines are invoiced automatically, so use this path for consolidations or for sources that did not auto-invoice. On a new invoice, leave **Create Standalone Invoice** unchecked and use the **Transactions to Apply** grid:

1. Select the customer — adorabl loads billable sales orders or shipped fulfillments.
2. Enter the quantity to bill on each source line.
3. Click **Save** to create a consolidated invoice from the selected sources.

Consolidated invoices preserve links to the underlying orders and shipments. Line editing is limited once sources are allocated — create a new invoice if you need a different consolidation.

**4. Add lines**

On the line grid:

1. Pick an **item** from the catalog to auto-fill description, price, default UOM, and revenue GL segments — or enter a free-form line.
2. Choose **UOM** when the item supports multiple units — adorabl converts quantity and price using the item's conversion factors.
3. Enter **quantity** and confirm **unit price**; line total calculates automatically.
4. Add rows as needed; invalid cells block save.

| Column | Notes |
| - | - |
| Item | Optional; pulls catalog defaults |
| Description | Printed on the invoice |
| UOM | Unit of measure for the line — see [Units of measure](https://www.adorabl.info/products/setup/units-of-measure.md) |
| Qty × Price | Drives line and document totals |
| GL Account | Natural revenue account, shown as `code - name` (for example, `4010 - Product revenue`) |
| Segments | Additional account-code segments when enabled |
| Dimensions | Reporting values required for the selected account or scope |

**5. Save draft or post**

* **Save as Draft** — keeps the invoice editable with no GL posting. A draft still needs a customer, a date, terms, and at least one valid line.
* **Save** — creates the AR journal entry, assigns the invoice number, sets status to **Open**, and updates customer open balance.

After posting, the invoice shows a journal entry reference and unlocks payment, dunning, and pay-link actions. Posted invoices display a **Balance due** row in the totals panel, showing the outstanding amount after applied payments and credits. Every change is listed on the **Activity** tab — see [Audit log and record history](https://www.adorabl.info/admin-and-settings/audit-log.md).

**6. Send or collect (optional)**

On a posted open invoice you can:

* **Generate pay link** — creates a signed hosted payment URL for the customer
* Review the **Dunning** panel for reminder history and pause controls
* Record payment inline or from [Incoming payments](https://www.adorabl.info/accounts-receivable/incoming-payments.md)

> [!NOTE]
>
> Hosted card capture uses a demo stub provider today. Pay links record intent and support manual reconciliation workflows until a live payment provider is connected.

## Create a credit memo, debit memo, or write-off

Credit memos, debit memos, and write-offs are transaction types on the invoice editor, so they post, apply, and reverse just like invoices.

| Type | Effect |
| - | - |
| **Credit memo** | Reduces the customer balance (returns, pricing corrections, standalone credits) |
| **Debit memo** | Increases the customer balance (additional charges) |
| **Write-off** | Removes an uncollectible balance from an open invoice and posts it to your bad-debt or write-off account |

**1. Start a memo**

From the **Invoices** list, click **New Transaction** and choose **Credit Memo**, **Debit Memo**, or **Write-off**. The editor mirrors the invoice layout with a matching transaction label.

**2. Choose standalone or applied**

* Leave **Standalone** off and add application rows to apply the memo to open transactions.
* Turn on **Standalone Credit Memo** or **Standalone Debit Memo** to post the memo to the customer's balance without tying it to a specific transaction. Write-offs are always applied to the invoice they clear.

Set the **Offset Account** so adorabl knows which GL account balances the AR control posting. A live **journal entry preview** shows the resulting debits and credits before you post.

**3. Apply to open transactions**

In the **Transactions to Apply** grid, allocate the memo against open invoices (and, for debit memos, open credit memos). Turn on **Auto-Apply to Transactions** to let adorabl allocate the full balance oldest-first, or **Create Payment** to record a matching payment as you post.

**4. Save or post**

* **Save as Draft** — keeps the memo editable with no GL posting.
* **Save** — records the journal entry and applies the memo. Posted, unapplied memos sit on the customer account until applied via [Incoming payments](https://www.adorabl.info/accounts-receivable/incoming-payments.md).

> [!NOTE]
>
> Posting a credit memo that fully covers its target invoice closes both transactions together. Open debit memos are also eligible payment targets on [Incoming payments](https://www.adorabl.info/accounts-receivable/incoming-payments.md).

## Copy an invoice or memo

Use **Copy transaction** in the header to start a new draft from an existing invoice, credit memo, or debit memo. The copy is dated today and keeps the customer, terms, lines, and units. Posting state, applications, source-order links, and reversal links are not copied.

### Application history

Once an invoice, memo, or payment is closed, its editable applications grid is replaced by a read-only **Application History** tab that lists every credit, debit, adjustment, and payment applied to the document, so you keep a clear audit trail after settlement.

### Credit an invoice in full

For eligible open invoices, use **Credit in full** from the invoice list or invoice detail. adorabl creates a matching credit memo, applies it to the invoice, and offers an undo window. A [customer return](https://www.adorabl.info/commerce/returns.md) posts its own credit memo against the original invoice. Inventory restock happens on the return when you receive the goods, not on the credit memo alone.

## Discard a draft invoice

Draft invoices that were created in error can be removed before they touch the general ledger.

| Situation | Header action | What happens |
| - | - | - |
| New invoice, nothing entered yet | **Cancel** | Closes the form and returns to the Invoices list without saving. |
| Existing invoice still in **Draft** | **Delete** | Removes the invoice and its lines after you confirm, then returns to the Invoices list. |

> [!WARNING]
>
> **Delete** is only available while the invoice is in **Draft**. Once posted, use a credit memo, [void, or reversal](https://www.adorabl.info/accounts-receivable/incoming-payments.md) instead — deleting posted documents would break audit history and GL balances.

## Example: Trail Ridge Outfitters

Trail Ridge posts invoice **INV-1048** to Aspen Sports Co.:

| Line | Item | Qty | Unit price | Revenue GL |
| - | - | - | - | - |
| 1 | TR-WS-M · Summit Fleece (M) | 24 | \$38.00 | 4000 · Product Sales |
| 2 | TR-HT-01 · Trail Cap | 12 | \$22.00 | 4000 · Product Sales |

* Invoice date: March 1
* Terms: Net 30 → due date April 1
* Posted total: **\$1,176.00**
* Journal entry posts to **1200 · Accounts Receivable** and revenue

When Aspen returns six fleeces, Trail Ridge issues a **Credit memo CM-1012** for \$228.00 linked to INV-1048 rather than voiding the original invoice.

## List view shortcuts

Status tiles at the top of the Invoices list show live counts for **Draft**, **Open**, **Partial**, **Closed**, and **Voided**. Click a tile to filter the table; click **Show all** to clear the filter. Tile counts combine with search — they do not replace it.

Imported pre-cutover invoices and memos appear in the list with a **Migrated** badge when your organization loaded legacy AR history.

| Action | Where |
| - | - |
| Filter by status | Status tiles or **Status** column filter on the Invoices list |
| Filter by transaction type | **Type** column filter (Invoice, Credit Memo, Debit Memo, Write-off) |
| Bulk select | Checkbox column for batch actions on eligible invoices |
| Row click-through | **View transaction** opens invoice detail for edit (draft) or view (posted) |
| Predicted pay date | Hint column when the prediction engine has a forecast |

## Related guides

> **[Customers](https://www.adorabl.info/accounts-receivable/customers.md)**
>
> Set up bill-to accounts, terms, and contacts before invoicing.

> **[Incoming payments](https://www.adorabl.info/accounts-receivable/incoming-payments.md)**
>
> Apply customer receipts to posted invoices.

> **[Collections & dunning](https://www.adorabl.info/accounts-receivable/collections-and-dunning.md)**
>
> Manage overdue follow-up and pay links in reminders.

> **[Recurring billing](https://www.adorabl.info/books/recurring-billing.md)**
>
> Generate repeat invoices on a schedule.

## Troubleshooting

> **Save is disabled**
>
> Confirm the header has a customer, date, and terms, and every line has valid quantity, price, and GL segments. Check for red validation markers on the line grid.

> **Posting blocked — period closed**
>
> The invoice date falls in a closed period, or AR posting is closed for that period. Either change the invoice date to an open period or reopen the period in [Fiscal calendar](https://www.adorabl.info/books/setup/fiscal-calendar.md) if your policy allows.

> **Invoice will not save — terms are required**
>
> Every invoice needs **Terms**. Pick a terms code on the header, or set default terms on the [customer](https://www.adorabl.info/accounts-receivable/customers.md) so new invoices fill them in automatically.

> **Sales-order invoice is blocked until fulfillment**
>
> Open the sales order and expand the workflow summary in the **Details** header. Orders with stock lines invoice only after a fulfillment is posted — and adorabl creates that invoice for you, one per shipment. Service-only orders have no fulfillment; invoice them with **Create from Sales Orders**.

> **A shipment did not create an invoice**
>
> Partial shipments do not invoice; the invoice arrives when the fulfillment ships in full. If the fulfillment shows **Invoice pending – error**, open it and fix the cause named in the alert (usually a missing revenue account) — adorabl retries automatically. See [Invoicing from fulfillment](https://www.adorabl.info/commerce/sales-orders-and-fulfillment.md#invoicing-from-fulfillment).

> **Due date looks wrong**
>
> Due dates compute from **invoice date + customer payment terms days**. Update terms on the [customer record](https://www.adorabl.info/accounts-receivable/customers.md) or override due date on the invoice before posting.

> **Credit in full is unavailable**
>
> The invoice must be **Open** or **Partial** with no existing full credit. Voided or already-credited invoices are not eligible.

> **Pay link generation fails**
>
> Confirm the invoice is posted, has a balance due, and online pay links are enabled for your organization.

> **Memo not reducing invoice balance**
>
> Confirm the memo is **posted** and has an application row against the target invoice (or use **Auto-Apply to Transactions**). Unapplied memos sit on the customer account until allocated via [Incoming payments](https://www.adorabl.info/accounts-receivable/incoming-payments.md).


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