Create and manage sales invoices

To help you keep track of what your customers purchase from you, how much they owe you and when payment is due, you can create a sales invoice. You can choose to print the invoice and send it to your customer or email it to them directly. When you a receive payment from the customer, you can record this against the invoice.

Before you can create an invoice, if you haven’t already done so, you need to create a contact record for your customer. If you supply your customers with the same products or services, to save time when entering your invoices, you can also create records for these.

You can customise the appearance of your invoices, add your company logo and include your terms and conditions.

Important notes about recording sales invoices for stock items

Creating a sales invoice reduces the amount in stock

Accounting tracks your stock by recording stock movements each time stock is bought and sold. Each stock movement has a type which records whether stock was added or removed. So whenever you record a sales invoice that includes a stock item, a Goods out transaction is tracked and Accounting automatically reduces your stock levels for this item.

Accounting doesn’t allow your stock levels to go into a negative value.

If you try to create a sales invoice for a stock item that’s more than you have in stock, the following message appears.

‘Qty in stock:(value). You cannot fulfil this invoice as you do not have enough stock.’

You should save the invoice as a draft until you’ve recorded all of your purchase transactions. If you need to, you can manually adjust your stock levels to change the number of items you have in stock. You would generally use this to write-off damaged stock, or to adjust quantities after a stock take.

To record a sales invoice

  1. Sales > New Invoice.
  2. Enter the following information:
Name * Enter the customer name. As you type, a list of customers appears > choose the customer from the list.

Tip: To add a new customer, click the [Search for customer] drop-down > Add a customer > enter the relevant information > Save.
Invoice Date* Enter the invoice date.
Due Date* This date automatically calculates from the payment terms entered in the customer’s record. If you haven’t entered any custom payment terms, it calculates based on the default number of credit days in Settings > Default Settings. If required, you can overwrite this date.
Reference If required, enter a reference, for example, a customer order number.
Invoice Address * If there’s a main address in the customer’s record, this appears automatically.

If there is no address on their record, click Add a main address> enter the address > Update. This doesn’t update the address in the customer’s record.
Delivery Address By default, the delivery address is the same as the customer’s main address. If you don’t want to use this address, click the edit button > select whether you want to use the invoice address, no address or a custom one. If you select Custom, enter the address > Update.

* These details are compulsory.

  1. To record the sale of a specific product or service, in the Product/Service box, type the name of the item > choose the required item.

The information for the chosen product or service appears on the next available invoice line. If necessary, you can change this information. If the item has multiple prices or rates, click the Unit Price column and choose the rate you want to use. If you need to create a new record, click Create item > enter the relevant information > Save.

  1. To add more products or services to the invoice, repeat the step above.
  2. If you don’t want to add a product or service to the invoice, enter the following information:
Description * Enter a description for the sale. You can enter up to 2000 characters.
Ledger Account * Choose the nominal code for the sale.
Item Code If necessary, enter a code, for example, a part number or stock code.
Quantity * Enter the quantity of items sold.
Unit Price* Enter the net value of the item.

Tip: If you’ve chosen a product or service that has more than one price or rate and you want to use a different value to the one that appears, click the unit price that appears then choose the correct price or rate.
Discount If you want to enter a discount as a fixed amount, enter the value in the Amount box and leave the percentage as zero. If you want to enter a discount as a percentage, leave the value in the Amount box as zero and enter the percentage in the % box.
VAT Rate* Choose the relevant VAT rate.

Tip: If your business is VAT registered and you don’t have the option to choose a VAT rate, check you’ve entered your VAT scheme correctly in Settings > Financial Settings.
VAT Amount* This calculates automatically based on the quantity, unit price and VAT rate.
Total This is the total gross value of this item line.

* These details are compulsory.

  1. If you’ve created transaction analysis types, for example departments, click the double chevrons > choose the relevant analysis category.
  2. If you’re selling goods or services to a customer in the EU, click the double chevrons > choose whether this item is goods and related services or a stand alone service.

If the customer is VAT registered, you must also choose which EU sales description you want to appear on the invoice.

  1. To add more transactions, on the next line, repeat the step above.
  2. Carriage > if you want to charge your customer for postage, enter the net amount and choose the relevant VAT rate.
  3. If required, enter any notes and terms and conditions.

The overall net amount of the invoice and VAT total appear at the bottom of the invoice. To view a breakdown of the VAT calculated, click Total VAT, then to return to the invoice, close the VAT Analysis window.

  1. To save the invoice as a draft or pro forma, click the Save as check box then click the relevant option.

Draft and pro forma invoices don’t update your accounts until you convert them.

  1. Click one of the following options:
  • Save – Saves and closes the invoice.
  • Save & Email – Amend the text as required then click Send.
  • Save & Print – Depending on your browser, the invoice opens in a new window or tab and you can print it from your browser menu.
  • Save & New – Saves and closes this invoice and you can then create a new invoice.

You’ve successfully entered the details of your sales invoice and it appears on the customer’s activity.

Track your sales invoice

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To help you manage and keep track of the sales invoices you create, you can view details such as when you created the invoice if you emailed or printed it and when the invoice was paid.

You can only view the document timeline in sales invoices created after 01/03/2019.

  1. Go to Sales and select Sales Invoices.
  2. Select an existing invoice created after 01/03/2019.

Hover over the following options to view the details:
CreatedShows the date and time you created the invoice.
SentSent as PDF – Shows as manually submitted. If you then email the invoice, it will change to emailed.
Emailed – Shows the customer’s email address or addresses and the date and time you sent the email for all email addresses in the To and CC lines of the email.
Green – shows when at least one of the emails have sent.
Red – If one email fails to deliver.
You may need to refresh this page to update this status.
ViewedShows the email address and date when the customer viewed the email.
If tracking is important, you can clear the Include attachment check box in the email window.
If your customer’s email provider doesn’t confirm when they view emails, the Viewed status doesn’t update. This means your customer may have viewed the sales invoice even if the status hasn’t changed.
To use the viewed status, you must email the invoice when you create the invoice or when you click into the individual invoice. It is not possible to track the viewed status if you email it from the Sales Invoices page.
PaidShows the date of the last payment recorded on the sales invoice.
Green – If fully paid.
Light Orange – If part paid.
Dark Orange – If it is overdue.

To manage an existing invoice

  • Sales > Sales Invoices > click the required invoice.

From here you can:

View the invoice details. This includes whether it’s paid or unpaid.
Check if the invoice has been issued. The invoice shows as issued if you’ve emailed or printed the invoice.
Email the invoice. You can send your invoice to your customer as a PDF file attachment.
Copy the existing invoice. This creates a new invoice with the exact same details without having to re-enter the information.
Edit the existing invoice. If the invoice has already been paid, credited or included on a VAT Return, you can’t amend it. For more information, please see To edit or void a sales invoice.
Pay an invoice. Record a payment against the invoice.
Create a credit note. Use the More option to quickly create a credit note with the same details as the invoice.
Print a delivery note. Use the More option to print a delivery note for the invoice.

To view a breakdown of payments and allocations

You can easily view which receipts have paid off your sales invoices, as well as which invoices and credit notes have been allocated together.

  1. Locate and open the invoice or credit note from the activity section on the contact record or, from the Sales tab.
  2. Click the Amount Paid value.

The Payments and Allocations option appears.

The allocation details of the transaction appears here, depending on the type of transaction you originally opened. To view further details, click the value in the Amount column.

To convert a draft or pro forma invoice

  1. Sales > Sales Invoices.
  2. Click the required invoice > if required, amend any details on the invoice as necessary.
  3. Clear the Save as check box.
  4. Click one of the following options:
  • Save – Saves and closes the invoice.
  • Save & Email – Amend the text as required then click Send.
  • Save & Print – Depending on your browser, the invoice opens in a new window or tab and you can print it from your browser menu.
  • Save & New – Saves and closes this invoice and you can then create a new invoice.

The invoice is now converted to an invoice and the value appears on the relevant nominal ledger accounts.

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