In e-commerce, the number of orders is high, but the amounts are low. This structure makes invoicing a specific problem: it is impossible to issue hundreds of documents manually.
Despite this, in many businesses, invoicing is done manually at the end of the day. The result: delayed documents, skipped orders, and a pile that cannot be sorted out at the end of the month.
In this article, we explained the flow from order to invoice, the selection of document types, and how return processes should be managed.
Table of Contents
End-to-end flow
A healthy e-commerce flow consists of five steps, and each step receives data from the previous one.
The first step is the order falling into the system. When the integration is established, this happens automatically and stock is reserved.
The second step is preparation: picking, checking, and packaging. Barcode scanning eliminates the risk of wrong products at this stage.
The third step is printing the cargo barcode and registering the shipment; shipping integration automates this step.
The fourth step is issuing the invoice, and the fifth step is notifying the channel of the tracking number. These two steps can be triggered simultaneously.
How is the document type determined?
In e-commerce, the vast majority of buyers are final consumers; in this case, an e-archive invoice is issued.
However, corporate buyers also place orders. If the buyer is an e-invoice taxpayer, the document type must change; this check must be done automatically.
Manual control is impossible at high volume. Taxpayer status inquiries for orders with entered tax numbers must be performed by the system.
We detailed the difference between the two document types and the selection rule in the difference between e-invoice and e-archive invoice article.
For international sales, the export scenario comes into play; you can check the e-export invoice article.
When should the invoice be issued?
Timing is both a legal and operational issue. Issuing it too early creates the need for correction in case of cancellation; issuing it too late carries compliance risks.
The common practice is to issue the invoice when the product is shipped. At this point, the order is finalized and the probability of cancellation is low.
Some businesses issue it when the order is confirmed; this requires extra processing in case of cancellation, but the process is simpler.
Whichever method you choose, the rule must be fixed and applied uniformly to all orders. An inconsistent structure creates confusion at the end of the period.
Consult your financial advisor for legal time limits; this article provides an operational framework.
Shipping and document relationship
The invoice is expected to accompany the shipment. In electronic documents, this is achieved by transmitting the invoice to the buyer electronically.
Some customers request a printed invoice. A printout of the e-archive invoice meets this demand, though it should be remembered that the original is the electronic copy.
It is also useful to link the tracking number to the invoice or order record. When a customer calls, both the document and the shipment can be viewed from a single screen.
Undelivered shipments must also be tracked. Returned cargo requires processing on both the inventory and document sides; see the return management article.
How shipping costs will be reflected on the invoice must also be clarified; as a separate line item or included in the price?
Return and cancellation documents
The return rate in e-commerce is higher than in other channels. Therefore, the return document workflow must be designed as well as the main workflow.
For orders canceled before the invoice is issued, no document processing is required; only the stock reservation is released.
For returns received after the invoice is issued, a correction document is required. The method varies depending on the document type and timeframe; cancellation and objection process we compared the options in the article.
Partial refunds require special attention. When a single item from a three-item order is returned, the document must also be partially corrected.
We covered the end-to-end flow of the return process in the return process in e-commerce article.
Volume and credit planning
E-commerce is the business model with the highest document volume. Every order generates a document, and every return generates another.
This means e-document credits deplete quickly. During campaign periods, consumption multiplies beyond normal levels.
Running out of credits in the middle of a campaign means sales come to a halt. This risk must be managed with threshold alerts.
Take return documents into account when making volume estimates; counting only sales invoices creates an incomplete plan.
We explained the planning method in the e-document credit planning article.
Period closing
Three checks must be performed at the end of the month. The first is the list of unbilled orders, which should be empty.
The second is orders that have been returned but whose documents have not been corrected. These records cause revenue to appear higher than it actually is.
The third is channel reconciliation: do the sales amounts reported by the marketplace match your records?
This third check is also important for commission calculations; if there is a discrepancy, the profitability analysis will also be incorrect.
Document flow runs in the e-Document module, order flow runs in the e-commerce module, and both are linked in the same account.
Common bottlenecks in the workflow
Although the flow between orders and invoices seems simple in theory, it gets stuck at a few points in practice.
The first is missing customer information. A corporate order without tax information waits at the invoicing stage.
The second is address inconsistency. Cases where the delivery and billing addresses are different must be defined from the start.
The third is partial shipment. It must be determined how the invoice will be issued when a part of the order is sent.
The fourth is cancellations and returns; a cancellation arriving after the invoice is issued requires a different document flow.
When rules are not defined for these four situations, the flow is resolved manually every time.
Points to consider
The timing of invoice issuance must be determined correctly both legally and operationally.
An early issued invoice creates extra paperwork in case of cancellation. A late issued invoice can delay shipment.
Separating document numbers on a channel basis makes subsequent reconciliation easier.
Commission invoices in marketplace sales must also be tracked separately; these are located on the expense side.
Associating shipping costs with the order ensures that true profitability is seen.
When this association is not made, channel profitability appears higher than it actually is.
Frequently asked questions
Can invoices be issued automatically?
Yes, automatic triggering based on order status can be set up. As volume increases, this becomes almost mandatory.
Does the marketplace issue its own invoice?
The model varies from channel to channel. Confirm your situation with your contract and financial advisor.
Can bulk invoices be issued?
Each order is documented separately for sales made to final consumers. Periodic bulk invoicing may be possible for corporate buyers.
How is it transferred to my existing accounting program?
Transfer is planned with system sync; bulk transfer is preferred for high volumes.
E-commerce invoicing is an area that makes automation mandatory due to volume. A manually run flow inevitably gets congested as the number of orders increases.
Let the first step be the automation of the document type decision. As long as this check is done manually, errors and delays are inevitable.
Next, put the unbilled order list on daily tracking. If the list is cleared every day, it means the workflow is running smoothly.
By consulting with the EQLEM team, you can set up your e-commerce document workflow.