Free Text Invoicing in Microsoft Dynamics 365 for Operations

By - March 1, 2017

A free text invoice is an invoice that is not attached to a sales order and does not require a sales order or packing slip. Free text invoices are used to sell a quantity of any kind of goods or services that are not in your inventory. In this blog, I will give you an overview of free text invoicing in Microsoft Dynamics 365 for Operations.

Free Text Invoice Process
The free text process goes straight from order to invoice, skipping the sales order, scheduling, production, and picking/shipping processes.

process
Free Text Invoice Header and Body
A free text invoice contains information that is similar to an invoice created through the sales order process. On a sales order invoice, an inventory item number is required, but on a free text invoice, you enter a description of the non-inventoried item or service.

header-body
Free Text Invoice Line Options
Options on a free text invoice line allow flexibility in data entry, including the following information:
• Each line can have a main General ledger account assigned.
• Each line can be distributed to multiple General ledger accounts.
• Sales tax can be manually calculated and entered.
• Invoice updates the customer balance and the affected General ledger accounts.
Free Text Invoice Examples
These are a few examples of when your organization would need to generate an invoice and update General ledger accounts but not affect inventory quantities or costs.

examples
Free Text Invoice Scenario
To better understand free text invoices, let’s talk about Sarah. Sarah, an employee, is on personal leave. The company policy states employees on personal leave must pay their health insurance premiums by personal check to the company. The HR manager emails the Controller asking that an invoice for $535.00 for the monthly premium be sent to Sarah. The premium is to be charged against Group Health Insurance Expense.
RSM Technology Academy
Dynamics 365 for Operations offers an excellent method for invoicing non-inventoried items and/or services while still updating customer accounts and General ledger accounts.

To learn more about free text invoicing and other Accounts receivable options in Dynamics 365 for Operations, check out the course catalog at academy.rsmus.com or contact our Dynamics experts at RSM 855-437-7202

by Bo Powe for RSM

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