If you or your clients have been using sales orders (a QuickBooks Premier and QuickBooks Enterprise Solutions feature for tracking sales that have not been shipped and back orders) you may have discovered that they do not seem to consistently close when invoiced in full on the Open Sales Order report. The other reports which deal with items on sales orders such as Inventory Stock Status by Item and Open Sales Order by Job have the correct quantities to be invoiced. We have come to learn there are several situations which create this issue and the related solution:
* The Sales Order was edited after the invoice was created. This one is mentioned first since it can happen, but typically in this case you would expect the Sales Order to be included on the Open Sales Order report until the new item has been invoiced. The exception worthy of noting in this case is that the change could be not a new item but a memo or text change and even this will create a situation where the Sales Order is no longer closed. If this is the situation, the Sales Order should be manually closed.
* The Sales Order has been manually closed. It is a known issue at Intuit, but for some reason, when the Sales Order is marked closed, it is not always removed from the Open Sales Order report. The solution in this case is to open the Sales Order, uncheck the closed box and re-check it. Save the transaction and it should no longer appear on the report.
* The invoice has had a change when the invoice was created. This includes adding additional items, changing or adding to the description, changing the quantity, etc. In this case, the easiest solution seems to be to open the Sales Order first, make any changes, then click on the Create Invoice icon so that the Invoice can be generated with no changes needed. If that is not a viable solution due to work flow, for example, once the Invoice has been created from the Sales Order, it would be required to return to the Sales Order to mark it as closed so it no longer appears on the Open Sales Order report.
As a resource for this and other questions, submit a question via "Ask the Expert" or attend our free, monthly discussion forum tele-class.
Bonnie J. Nagayama, CPA (925-247-0100) has been featured by Intuit in their QuickBooks Advisor Spotlight and frequently teaches and consults on using QuickBooks to its maximum advantage. For a FREE weekly newsletter of QuickBooks tips and tricks, plus many free and low cost QuickBooks resources visit www.4luvofbiz.com.