With Finale Inventory, managing purchase orders is simple and transparent. Each step—from receiving shipments to posting bills and payments—automatically updates your ledgers, so your inventory values and payables are always in sync.
1 & 2. Sales Order Created – Editable or Committed Status
When a Sales Order is first created or committed, no ledger entries are made. These early stages are for order planning and confirmation only.
3. Shipment Added – Editable Status
Adding an editable shipment record does not affect your ledger. Ledger activity begins once the shipment is marked as shipped.
4. Shipment Marked as Packed
Packing a shipment allocates inventory to that shipment, however, since a packed shipment is still in your possession, there is no ledger activity until the shipment has been marked as shipped.
5. Shipment Marked as Shipped
When you mark a shipment as Shipped, Finale records the cost of goods sold for that shipment and moves the income asset into a Sales Clearing Account
Ledger Impact |
Account |
Entry Type |
|---|---|---|
Inventory Asset |
Decreases |
Credit |
Cost of Goods Sold |
Increases |
Debit |
Sales Clearing account (Other Current Asset) |
Increases |
Debit |
Income |
Decreases |
Credit |
This step recognizes the cost of goods sold and decreases your inventory asset prior to an invoice being posted.
7. Invoice Marked as Posted
When you post the invoice, Finale moves the Income Asset from the Sales Clearing Account to Accounts Receivable, reflecting the customers obligation to pay you.
Ledger Impact |
Account |
Entry Type |
|---|---|---|
Sales Clearing account (Other Current Asset) |
Decreases |
Credit |
Accounts Receivable |
Increases |
Debit |
9. Payment Marked as Posted
When a payment is posted, Finale records the settlement of the receivable using your Undeposited Funds account.
Ledger Impact |
Account |
Entry Type |
|---|---|---|
Accounts Receivable |
Decreases |
Credit |
Undeposited Funds |
Increases |
Debit |
If Finale Inventory is connected to QuickBooks® Online (QBO), do not post payments in Finale. Payments should only be recorded in QuickBooks, as payment posting in Finale is not currently synced.
10. Sales Order Marked as Completed
Once all shipments, invoices, and payments are processed, marking the Sales Order as Completed finalizes the transaction record without additional ledger entries.
Summary of Ledger Flow
Step |
Action |
Ledger Impact |
|---|---|---|
5 |
Shipment marked Shipped |
DR COGS / CR Inventory Asset DR Sales Clearing / CR Income |
7 |
Invoice marked Posted |
DR Accounts Receivable / CR Sales Clearing |
9 |
Payment marked Posted* |
DR Undeposited Funds / CR Accounts Receivable |
*Payments should only be posted in Finale for accounts not connected to QuickBooks.
Key Takeaways
COGS allocation happens when goods are shipped.
Invoice posting moves income from clearing to receivables.
Payment posting (if applicable) clears liabilities.
When using QuickBooks, post payments only in QuickBooks.