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MythLedger Knowledge Base

Understand the financial flow of your business. Learn how agreements, quotations, invoices, and payment receipts work together.

Document Flow Pipeline

Click on any phase below to quickly open the corresponding documentation chapter. The pipeline shows how documents connect (for example, one quotation can be billed across multiple invoices).

Can have multiple
Can have multiple
Can have multiple

Document Life Cycle & Workflow

Welcome to the MythLedger Knowledge Base. This guide explains how the core financial documents in MythLedger—Agreements, Quotations, Invoices, and Receipts—are interconnected and work together to form a seamless business billing and client management pipeline.

In a professional services or B2B business, client engagements flow through structured phases. MythLedger mirrors this real-world business pipeline, allowing you to link multiple sub-documents to a parent document as your project progresses:

  1. Agreements (Linked with Multiple Quotations): Define the core legal and commercial terms of the relationship. A single master agreement can encompass multiple quotations/proposals for different project phases or scope modifications.
  2. Quotations (Linked with Multiple Invoices): Establish price estimates. A single quotation can be billed across multiple invoices (e.g., progressive milestone billing like 30% deposit, 50% midpoint, and 20% completion).
  3. Invoices (Linked with Multiple Receipts): Represent demands for payment. An invoice can be paid across multiple installments, generating multiple payment receipts until the full balance is settled.
  4. Receipts: Confirm payment settlement for accounting, tax, and bookkeeping compliance.

1. Agreements (The Legal Foundation)

Every commercial relationship begins with a formal agreement or contract.

  • Purpose: To define the scope of work, deliverables, deadlines, milestone schedules, and legal terms.
  • In MythLedger: You can draft agreements in the native Tiptap editor, link them to specific Clients and Projects, and send them to clients for digital verification (via secure OTP approvals).
  • Linking: An agreement acts as the parent document for the subsequent project. Once approved, the project milestones are mapped to estimate values.

2. Quotations (The Cost Estimate)

Once the contract terms are settled, you detail the costs of specific work packages or products using a Quotation.

  • Purpose: To provide the client with a detailed estimate of costs, taxes (CGST/SGST/IGST), discounts, and additional charges.
  • In MythLedger: You can draft estimations, list your inventory products, specify quantities, and apply discount structures for client review.
  • Linking: A Quotation is linked directly to a Client and Project, and can reference an active Agreement. When the client accepts a Quotation, it forms the basis of billing.

3. Invoices (The Billing Request)

When a milestone is reached or products are shipped, you request payment by issuing an Invoice.

  • Purpose: A formal demand for payment containing payment terms, bank details, itemized totals, and applicable taxes.
  • In MythLedger: Invoices can be created from scratch or generated directly by converting an approved Quotation or linking to an Agreement. Generating an invoice locks the items in place to ensure financial integrity.
  • Linking: Invoices link to both the Client, Project, and optionally the parent Agreement or Quotation. An invoice remains in an unpaid status until payment is settled.

4. Receipts (The Settlement Confirmation)

Once the client makes a payment against an invoice, you issue a Receipt.

  • Purpose: A tax-compliant proof of payment that settles the outstanding balance on the invoice.
  • In MythLedger: You can record payments and generate E-Receipts with one click from the invoice view.
  • Linking: Every Receipt is linked directly to its parent Invoice, keeping a clear ledger of which payment installment settled which billing request. Every receipt references the specific client and transaction details. A receipt effectively balances the ledger, marking the invoice as settled.

Best Practices for a Seamless Flow

  • Link Documents to Projects: Always associate Agreements, Quotations, and Invoices with a specific Project in the dashboard. This automatically builds a unified project timeline, aggregating all your cash inflows, outflows, and files in one place.
  • Keep Versions Organized: When terms change, update the agreement to create a new version. MythLedger groups these versions together so you never lose the history.
  • Automated Tax Calculations: Select the correct client state. MythLedger automatically applies CGST/SGST for intra-state sales, or IGST for inter-state sales.
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