Sales Cycles
Three distinct paths cash takes from a customer to your books — choose the right cycle for your business model.
Trabalance supports three sales cycles. Each represents a different operational reality: how fast the sale closes, how much documentation is needed, and at which point money changes hands. Understanding which cycle applies to a transaction determines which documents to create and in what order.
The Three Cycles
| Cycle | Best For | Documents Involved | Journal Impact |
|---|---|---|---|
| Retail / POS | Walk-in sales, immediate payment, no credit | Sales Receipt only | Single posting: Revenue + Bank + Cost of Sales in one document |
| Standard B2B | Trade customers, credit terms, fulfillment tracking | Estimate → Sales Order → Delivery Note → Invoice → Receipt | Invoice posts Revenue + AR; Receipt closes AR |
| Direct Invoice | Service businesses, known customers, no pre-sales step | Invoice → Receipt | Invoice posts Revenue + AR; Receipt closes AR |
The Standard B2B cycle lists five documents, but none of them are mandatory. An estimate is optional. A sales order is optional. A delivery note is optional. You use the steps that match your operational workflow. The minimum to recognize revenue and receive cash is Invoice + Receipt.
Cycle 1: Retail / POS
The fastest cycle. A customer walks in, buys goods or services, and pays on the spot. The Sales Receipt is a combined invoice-and-payment document — revenue and cash are recorded simultaneously in a single posting.
Navigate to: Sales → Sales receipts → New (POS mode), or the POS terminal at /pos
No outstanding AR is created. No separate receipt is needed. The sale is complete the moment the sales receipt is saved.
Cycle 2: Standard B2B — Step by Step
This is the full cycle used for trade accounts, bulk orders, and credit customers.
| Step | Document | Journal Created | Purpose |
|---|---|---|---|
| 1 | Estimate | None | Send a formal price proposal to the customer. No financial impact. |
| 2 | Sales Order | None | Customer confirms the estimate. Creates a fulfillment commitment. Operations can now plan delivery. |
| 3 | Delivery Note | None — stock moves | Confirms physical dispatch of goods. No pricing shown. Proof of delivery for disputes. |
| 4 | Invoice | Yes — DR AR, CR Revenue, CR Tax (+ DR Cost of Sales, CR Inventory) | Financial event. Revenue recognized. AR opened. Stock is not reduced again when the invoice comes from the delivery note. |
| 5 | Receipt | Yes — DR Bank, CR AR | Customer pays. AR closed. Cash enters the bank account. |
Navigate to Sales → Estimates → New. Fill in the customer, line items, and pricing. Share via email, WhatsApp or link. The estimate is a proposal — it carries no financial weight until it is converted.
From the estimate, More → Convert to → Sales Order. The sales order records the confirmed commitment. Operations can see what needs to be fulfilled. Status: Open.
From the sales order, More → Convert to → Delivery Note. Set the quantities leaving now. The delivery note confirms physical shipment; no pricing prints on it. Hand it to the driver or email it to the customer as proof of dispatch.
From the delivery note (or the order), More → Convert to → Invoice. Adjust the lines to what is being billed. Save. Revenue is recognized. AR is created. The customer now owes you money.
From the invoice, Record Payment (or Sales → Payment receipts → New). Enter the amount received and allocate it to the invoice. Save. AR is closed. The invoice status moves to Paid.
Cycle 3: Direct Invoice
Used when there is no pre-sales process — you know what to bill and you bill it directly.
Navigate to Sales → Invoices → New. Enter the customer, line items, and terms. Save. AR opens immediately.
From the invoice, Record Payment. Allocate the payment to the invoice. Save. AR closes.
This is the most common cycle for service businesses — consultants, agencies, freelancers, and professional firms. No physical goods, no delivery note needed, no sales order required.
Which Cycle to Use
| Scenario | Recommended Cycle |
|---|---|
| Retail shop, cafe, pharmacy | Retail / POS |
| Wholesale distributor with trade accounts | Standard B2B |
| Consulting or professional services firm | Direct Invoice |
| E-commerce with credit terms | Standard B2B |
| SaaS or recurring subscriptions | Direct Invoice (with Recurring Invoices) |
| Manufacturing with pre-orders | Standard B2B |
| Freelancer or agency billing hours | Direct Invoice |
Related
- Moving from one document to the next: Converting between documents.
- Reading where a document sits in its cycle: The Lifecycle panel.
- The one-document cash cycle: Sales receipts (POS).
- The credit cycle: Invoices.