Progressive Invoice

The Progressive Invoice in DIGITZ ERP is used to generate incremental billing against a confirmed Sales Order. It allows organisations to invoice customers based on percentage completion, milestone achievements, or staged delivery of goods or services. This method is ideal for projects, contracting, service engagements, or long-term supply agreements where billing is done in structured phases rather than a single consolidated invoice.

Progressive Invoices ensure that revenue is recognised in stages based on actual progress. Each invoice maintains linkage to the original Sales Order and tracks cumulative billing to ensure transparency and prevent over-billing.

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Key Features

1. Created Against a Sales Order

• Always linked to a Sales Order for consistency and traceability.
• Users can bill customers for a portion of the total order value.
• Enables clear control over contract-based or progressive billing cycles.

2. Supports Milestone or Percentage-Based Billing

• Billing can be based on predefined project milestones.
• Or created based on a percentage of the total Sales Order value.
• Provides flexibility for partial billing depending on work progress.

3. Tracks Cumulative Billing

• System maintains total billed value against the Sales Order.
• Prevents billing beyond the approved order value.
• Shows remaining amount or percentage yet to be invoiced.

4. Accounting Impact

• Each Progressive Invoice posts accounting entries similar to a standard Sales Invoice:
  • Debit: Accounts Receivable
  • Credit: Sales Income
  • Taxes or charges applied as applicable
• Ensures financial accuracy across multiple billing stages.

5. Partial Invoicing Without Delivery

• No delivery notes required for service-based or progress-based billing.
• Ideal for industries where work or service progress is invoiced without physical stock movement.

6. Status Tracking

• Tracks invoice payment status such as Unpaid, Partially Paid, or Paid.
• Helps monitor receivables at each stage of billing.

7. Full Traceability

• Maintains backward linkage to the Sales Order.
• Forward linkage to Payment Entries and related adjustments (e.g., Credit Notes).
• Supports full audit trail across all progressive billing stages.