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AR Invoice VS AR Reserve Invoice

AR Invoice vs AR Reserve Invoice

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As a new user of SAP Business One, have you ever asking what is the differences between this two on SAP Business One? Which one is more suitable for you?

First, let’s talk about AR Invoice.
AR Invoice can be created based on Sales Quotation, Sales Order, Delivery Order, or Blanket Agreement. Normally, you can choose, this type of invoice can be created before or after Delivery Order.

AR Invoice vs AR Reserve Invoice

Invoicing Flow (Before or After Delivery)

The difference before or after DO is only on posted journal itself. Invoice created after DO will be posted like this:
Dr  1xxxx             Customer Receivable     xxx
Cr  2xxxx             Output Tax                                          xxx
Cr  4xxxx             Sales Revenue                                    xxx

And when created before:

Dr  1xxxx             Customer Receivable      xxx
Dr  5xxxx             COGS Finished Goods     xxx
Cr  2xxxx              Output Tax                                         xxx
Cr  4xxxx              Sales Revenue                                  xxx
Cr  1xxxx               Inventory                                           xxx

But, the concept will be different if we talk about AR Reserve Invoice.

There’ll be no posted journal to Inventory Account, and this type of invoice more suitable if you don’t want to create invoice without deducting the items from the inventory.

Posted Journal on AR Reserve Invoice

The posted journal on AR Reserve Invoice add into SAP Business One system:

Dr  1xxxx             Customer Receivable     xxx
Cr  2xxxx             Output Tax                                          xxx
Cr  4xxxx             Sales Revenue                                    xxx

Concept of AR Invoice vs AR Reserve Invoice

Kindly note that AR Reserve invoice is closed against an incoming payment, the same concept with standard AR Invoice. However, inventory closure takes place in the Delivery Order.

Extra Information:

So, what is the different based on table composition?
Yes, both are in the table OINV

But, don’t worry, you can use ‘IsIns‘ field.
If the value is ‘Y‘, it means that document is AR RESERVE INVOICE.

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This article was written by PT. Sterling Tulus Cemerlang, SAP Business One GOLD Partner in Indonesia.
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