About

Finaloop simplifies the process of managing B2B invoices and receivables, ensuring your records are accurate and up-to-date. Whether you need to track invoice statuses, link payments to the invoices, customize your invoice settings, or more, Finaloop provides tools to help you efficiently manage your wholesale and B2B customer receivables.

Navigating your Finaloop invoices

First, let’s take a look at Finaloop’s invoices tool. Head to Customers on the menu and then click Invoices.

All Invoices tab

Invoice details (#1)

You can see a comprehensive list of all invoices, sorted by creation date. Here, you can view important details such as:

Invoice Number
Customer Name
Invoice Date (issue date)
Due Date (based on set payment terms)

Additionally, for each invoice, you’ll see:

Net Sales: Gross sales plus shipping income minus discounts and refunds
Net Invoice: Net sales plus sales tax and deductions
Balance Due: The remaining unpaid amount
Status Tracking: Monitor invoice progress with status labels like:
- Draft
- Open
- Past Due
- Paid / partially paid
- Voided
- Uncollectible / partially uncollectible

Search and Filter Options (#2)

Use the search bar to look up invoices by number, customer name, or amounts.
Apply filters, such as date range, source, status, P&L category, Product, currency, etc. to refine the list. You can mix and match filters for precise results.

Open Invoice and Metrics (#3)

Here you can see all your invoices broken down to easily track the unpaid invoices and specific invoice metrics, including:

Invoices: The number of invoices created in the selected period
Unpaid balance: The total unpaid balance from your invoices
AIV: Average invoice value which is your gross sales, minus discounts, plus shipping income, divided by your total invoices.
Net sales: Your total gross sales, plus shipping income, minus discounts and refunds.

In addition, you can see your past due invoices and your invoices with upcoming due dates.

Actions Menu (#4)

Select one or multiple invoices and click Actions to:

Link: Connect invoices to payments from your bank account or credit card.
Close uncollected balance: Flag invoices as uncollectible to recognize a loss in your books.
Void: Mark invoices as void to remove the impact of the invoice on your books (reversible).
Delete: Permanently remove invoices.

2. Unpaid Invoices tab

This tab focuses on open invoices and their outstanding balances as of a selected date.

Set a specific date (e.g., May 31, 2024), and the table recalculates balances and aging as of that date,
Quickly identify overdue invoices and follow up on payments for the selected date,
For example:
- Invoice of $1,000 with an invoice date of January 1, 2024.
- $500 paid on June 1, 2024.
- If you look at today’s date, you will see a balance of $500 but if you set the date to May 31, 2024, you will see a balance of $1,000.
- Note, that the Status provided, will always show as of today’s date.

Export your data easily by clicking Export to generate:

A list of invoices
An accounts receivable aging report. The aging report will contain a list of your customers’ unpaid invoices as well as how long they have been outstanding to help you better manage and understand your receivables.

3. Linked Invoices & Payments Tab

The Linked Invoice to Payment tab simplifies reviewing and managing connections between payments from your Transactions page and your invoices.

Features include:

View linked invoices to review, edit, or unlink connections
Create new links to match payments with invoices

You can link between invoices and payments from this page, from the transaction page by categorizing a payment as an invoice payment, from opening a single invoice or from the All Invoices screen for bulk linking.

Once you enter the linking page, you can add single or multiple payments or invoices.

4. Settings Tab

Customize your invoicing preferences under Settings:

Add a logo for branding
Enable auto-numbering for easy tracking of your invoices
Manage default details for the invoice (i.e., your information), such as name and contact info. This will be included in each invoice,
Set up payment methods and choose your preferred payment method by selecting a default. This will be included in each invoice and will be visible to your customer,
Download an invoice template for consistency across all invoices.

Creating a B2B or wholesale Invoice

To create a B2B invoice, head to Customers>Invoices and then click +Add invoice.

Relevant fields to include in your invoice

Name: The default invoice number will be automatically populated based on your selected Settings. You can also edit this as needed.
Invoice date (required): Add the date the invoice is issued to your customer. This is the date the sales will be recorded in your books.
Payment terms: Select the relevant payment term period or add your own due date.
Due date (required): The due date will be automatically populated based on the payment terms, unless you enter the specific due date.
P&L category (required): Select the invoice category from the dropdown list. The invoice income will be recorded in the selected category in your financials. You can also toggle on multiple categories to select separate categories for each line item in your invoice.
Customer (required): Enter customer name. Once you start typing, you can choose from the list of customers. You can also create a new customer or edit an existing one.
Items (required): Click +Add items to select one of the SKUs we synced from Shopify or Amazon or to select a previously added SKU. For Sales-Based or InventoryIQ users, when you select the item, the COGS will be automatically added to your P&L on the invoice date. You can also try +Custom item to add a one-time custom item. These are unique items for one specific invoice. Note that no COGS will be automatically created for a custom item. Enter the amounts of the units and click Save.
Discounts: You can add a discount per item or a general discount that applies to the whole invoice.
- Discount per item:
  - To add a discount per item, click on the unit price for the specific item you want to apply a discount to.
  - Toggle on the Discount per item.
  - Select Amount to enter a fixed discount amount or select Percentage to apply a percentage discount. You can also add a description that will be visible to your customer.
  - Click Save.
  - You can also change the item price before the discount is applied.
- General discount:
  - Click + Add general discount.
  - Select Amount to enter a fixed discount amount or select Percentage to apply a percentage discount.
  - Click Save.
Shipping: Click + Add shipping to add a shipping amount. You can also add a discount here.
Tax: Enter tax amount.
Payment methods (required): The default payment method you set in your Settings page will be shown. You can also edit or add an additional method.
Invoicer info (required): This info will be automatically populated based on the preferences set in your Settings page.

When finished, click:

Save as draft: No impact to your books
Save: Save to your books to record the sale and create an open invoice
Save and send: To save to your books and send it to your customer
Save and close: To save to your books and go back to the All Invoices tab

You can always come back and edit the invoice and perform necessary actions such as linking to a payment, mark as uncollectible, void, or delete.

Linking an Invoice to a Payment

Properly linking payments to invoices ensures accurate records of your open receivables. Here’s how to do it:

Step 1: Find the Invoice(s)

Go to the All Invoices or Unpaid Invoices tab.
Search, filter, or scroll to find the invoice(s) you want to link.

Select one or multiple invoices, then click Actions and choose Link Payment, or click into the invoice page.

Alternatively, you can also link payments to invoices on the Transactions Page by categorizing the payment as invoice payment or by opening an open Invoice and clicking Actions.

Step 2: Add Invoices and Payments

On the Linking screen, you’ll find the invoice(s) you selected at the top of the screen.

+ Add Invoice: View and select additional invoices.
+ Add Payment: Choose the relevant money-in transaction(s) from your linked bank accounts and click Save.

Step 3: Adjust Allocations

Enter the portion of the payment you want to allocate and split it between the relevant invoice(s). You can also enter the portion of the invoice you want to allocate and split it between the relevant payments.
Sometimes, a payment will not match an invoice amount due to specific expenses, discounts, deductions, or other fees applied. If applicable, you can add these deductions or expenses to close the remaining invoice balance(s).
Ensure the total allocated amounts match; the net balance must be zero.
Click Save to complete the process.

Check the updated statuses on the invoices page (Paid/Partially Paid).

Access and Edit Links

View or manage payment links from each invoice page or the Linked Invoice to Payment Tab. You can also access it from the Transactions screen.
Unlink or edit links anytime if adjustments are needed.

Cash vs. Accrual accounting: How invoices affect your books

The way invoices impact your books depends on whether you're using the cash or accrual accounting method.

Cash method

Income is recorded only when you receive payment from the customer, not when you create an invoice.
COGS (Cost of Goods Sold) is recorded on the later of when the inventory is fulfilled (used or consumed) or when you pay for it.
In Finaloop, COGS is automatically recorded based on the invoice date, which assumed to be the fulfillment date.

Accrual method

Income is recognized when it's earned—creating and saving an invoice will increase both your sales and accounts receivable by the invoice amount.
In Finaloop, income is automatically recorded based on the invoice date, which we assume is the fulfillment date.

This ensures your books reflect accurate financials based on your accounting method.

By using these features, you can maintain a clear and organized view of your B2B receivables, ensuring efficient cash flow and strong customer relationships.

If you have any other questions, just reach out to [email protected]!