Create sales invoice - detailed version

This explains the information shown on the sales invoice in more detail, such as adding discounts, adding a delivery address, changing the VAT rate etc.

The quick start guide shows you how to create a simple invoice.

Set the invoice due date

The due date populates from the credit terms you have set on the customer’s record. You can change this on the invoice. For example, if your customer's default payment terms are set to 30 days but you'd like them to pay this invoice within 15 days, adjust the Due Date shown on the invoice to reflect this.

Change the payment due date or terms on invoices

Specify a delivery address

The delivery address on your invoice populates from the customer record you select. You can change this on an individual invoice, if you need to.

No separate delivery address? The delivery and invoice address can be the same.

Don’t have an address for this customer at all? No problem. Just enter text such as ‘No address’ or ‘TBC’ into the address fields in order to create and save your invoice. You can edit the address on the customer’s record later, if you need to.

Change a

Ledger accounts are used to categorise and group your sales and other transactions. For example, if the invoice is for stationery, you might use a for Office Supplies.

When you save the invoice, the net value (without VAT) is recorded against this, so you can report on the total value of your office supply sales.

Image showing detail of the invoice entry screen. The Product or Service, Description and Ledger Account fields are shown.

When you create an invoice, the default set on the customer record is used first. This is to help you make sure the right is used on your sales invoices automatically.

If you add a product or service to the invoice, the ledger account is taken from the one saved on the product or service record.

You can change the ledger account shown on any of your invoice lines.

Read more about ledger accounts    

Add a discount

You can add a discount to individual items on your invoices, either as an amount or a percentage.

Should I apply my discount before or after VAT is calculated?

A discount that is inclusive of VAT reduces the amount the customer needs to pay for the invoice, and reduces the amount of VAT due. This type of discount is applied to the invoice. When you calculate your VAT Return, these reduced net and VAT values are included on it.

A discount that is exclusive of VAT reduces the amount the customer needs to pay, but does not affect the amount of VAT due. If you need to apply your discount after VAT has been calculated, you must enter it at the time of recording the payment.

If you’re not sure whether your discount should be applied before or after VAT is calculated, you should consult your accountant.

See examples and learn how to apply each type of discount

Add analysis tags

Analysis types are tags which make it easier for you to analyse your accounts in more detail. There are three types: departments, cost centres, and projects.

Once you’ve set analysis tags up, you can assign them when you create your invoices. You can then produce reports using these tags, helping you to review your sales in more detail.

For example, if you set up departments for each of your sales regions, you can apply those departments when you create invoices. Later, you can produce reports that show invoices for each region.

Before you can add analysis types to an invoice, you need to set them up in Settings, then Business Settings, Analysis Types. Once you've created them, add them to an invoice by clicking the ellipsis ( ) at the end of each item line:

Image showing detail of the invoice entry screen. The ellipsis to the right of an item line has been selected, expanding the Department, Cost Centre and Project options.

Learn more about analysis types

Change VAT rate

When you create an invoice, the VAT rate used is the one set as the default on the customer record. If you then add products or services, the VAT rate updates to use the one saved on the product or service record.

You can change the VAT rate on individual item lines by selecting the rate you want to use from the drop-down list.

More about VAT rates

Add bank details, notes or terms and conditions

Each invoice you create has space for you to add terms and conditions and extra notes. Use these to add information such as terms of sales for your customers, and bank details for payment.

You can enter this information on each invoice as you create it. If you prefer, you can set up default terms and notes which will print on every invoice you create.

To set up default text, go to Settings, then Business Settings, Document Preferences, and scroll to the Terms & Conditions and Notes sections. The notes and terms you set up here will appear on every new invoice you create, but you can amend or add to these on individual invoices.

Tip: If you enter your bank details in the invoice notes, your customer has them to hand when they come to pay their invoice.

Add shipping costs

If you want to charge your customer for delivery or postage charges, enter the net amount in the Carriage box. You can apply a VAT rate if your shipping charges are subject to VAT.

View VAT breakdown

When you've finished adding items to your invoice, the total net, VAT and gross amounts appear at the bottom of the invoice. The VAT is broken down by VAT rate, so you can see a separate line for each rate used on the invoice.

If you would like to see a further breakdown of the VAT included on your invoice, select the View VAT Analysis link. This opens a table which displays a full breakdown of the VAT for the items you've put on the invoice, including the different VAT rates and a breakdown of values for goods and services:

Image showing the VAT Analysis dialog, a detailed breakdown of VAT per VAT Rate for this invoice.`

Add attachments

Attachments are a great way to keep track of any files you have that relate to this invoice. For example, you could attach sales literature such as a PDF brochure, or a product image. If you email the invoice to your customer, they can see the files you've attached.

You can add up to 10 attachments to each invoice, using files of the following types: PDF, GIF, JPG, JPEG or PNG. The maximum size for each file is 2.5MB.

Learn more about attachments

Customise your invoice

Use the Customise menu at the bottom of the New Sales Invoice page to jump to customisation settings. This saves you time when you want to customise invoices for your business.

Customise menu, showing options for Templates and logos and Document preferences

 

Using stock items with sales invoices

Creating a sales invoice reduces the amount in stock

We track your stock by recording stock movements each time a stock is bought and sold. Whenever you record a sales invoice that includes a stock item, a 'Goods out' transaction is tracked and we automatically reduce your stock levels for this item.

We won't allow your stock levels to go into a negative value

So you can't sell something that's out of stock, we won't let you save an invoice when your stock levels are too low.

We recommend that you 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.

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