5. Finance, Milestone Invoicing & Accounting

This guide details how Edge Home Solutions manages client milestone invoicing, Kenyan VAT/eTIMS compliance, payment receipts, and financial reporting.

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1. The 50-40-10 Invoicing Workflow

Edge Home Solutions standard payment terms protect working capital and align cash flow with manufacturing milestones:

[Contract Signing & 3D Sign-off] ──→ 50% Advance Deposit Invoice ──→ [Bank Receipt]
[Workshop Complete & Site Delivery] ──→ 40% Progress Delivery Invoice ──→ [Bank Receipt]
[Snagging Complete & Handover Sign-off] ──→ 10% Final Retention Invoice ──→ [Final Receipt]

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2. Generating Milestone Sales Invoices

Step-by-Step Milestone Invoicing:

1. Open the approved Sales Order (or go to Accounts → Sales Invoice → + Add Sales Invoice at https://erp.edgehomesolutions.co.ke/desk/sales-invoice).
2. Click Create → Sales Invoice.
3. In the Payment Schedule table:
   • For Milestone 1: Invoice 50% of the contract value.
   • For Milestone 2: Invoice 40% when items are staged for site delivery.
   • For Milestone 3: Invoice 10% after handover sign-off.
4. If Kenyan eTIMS compliance applies, verify VAT rate (16%) and customer KRA PIN.
5. Click Save and Submit.

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3. Recording Client Payments (Payment Entry)

When a client pays an advance deposit or progress balance:

1. From the Sales Invoice, click Create → Payment.
2. Or go to Accounts → Payment Entry → + Add Payment Entry (https://erp.edgehomesolutions.co.ke/desk/payment-entry).
3. Verify fields:
   • Payment Type: Receive.
   • Party Type: Customer.
   • Party: Client Name.
   • Account Paid To: Company Bank Account (or M-Pesa / Cash).
   • Received Amount (KES): Amount deposited.
   • Reference No / Transaction ID: Bank transfer reference or M-Pesa confirmation code.
4. Click Save and Submit.

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4. Key Financial Reports for Management

All financial reports run locally with real-time data:

• Chart of Accounts Tree: https://erp.edgehomesolutions.co.ke/desk/Tree/Account
  • Visual hierarchy of Assets, Liabilities, Equity, Income, and Expenses for Edge Home Solutions.
• Profit and Loss Statement:
  • Accounting → Financial Statements → Profit and Loss Statement (https://erp.edgehomesolutions.co.ke/desk/query-report/Profit%20and%20Loss%20Statement)
• Accounts Receivable Aging:
  • Accounting → Accounts Receivable → Accounts Receivable Summary
  • Monitors client balances and pending milestone payments.
• Balance Sheet:
  • Accounting → Financial Statements → Balance Sheet (https://erp.edgehomesolutions.co.ke/desk/query-report/Balance%20Sheet)