Creating a Sales Invoice

A sales invoice lets you record the products and services you sold to your clients, calculate tax and discounts, record payments, and create journal entries automatically. This guide explains every part of the create invoice screen, and how tax is calculated and recorded in the tax account.

Opening the create invoice screen

1. From the main menu, click Sales.
2. Click Create Invoice.

Invoice details

Field	Description
Use Pre-filled Templates	To start the invoice with data saved earlier in a template.
Invoice layout	How the invoice looks when viewed and printed. Keep the Default Invoice Layout, or choose another layout from Invoice/Estimate Layouts.
Client (required)	Choose the client, or click New to add a client quickly. To add one with full details, use Add Client.
Edit Currency	Appears below the client, to change the invoice currency and exchange rate.
Invoice No	Generated automatically according to the auto number settings.
Invoice Date	The invoice date that reports and the tax return are calculated on. Changing it requires the permission to edit the invoice date.
Issue Date	The invoice issue date, if it’s different from the day it was created.
Payment Terms	The number of days allowed to pay the invoice.
PO Number	The client’s purchase order number (optional).
Sales Person	The staff member responsible for the sale. You can choose more than one with Multiple.
Order Source	Where the order came from (optional).
Cost Center / Sales Account	Appear depending on the accounting and account routing settings.
Add Extra Custom Field	To add fields that appear in the printed invoice.

Invoice items

Add the invoice items in the table. Each row contains:

Column	Description
Items	Search for the product or service by name or code.
Description	An additional description for the item.
Unit Price	The unit selling price.
Qty	The quantity sold.
Discount	A discount on the item (percentage or amount).
Tax	The item’s first tax. A second tax column appears if you have two or more taxes enabled.
Subtotal	The row total.

• To add a row, click Add. To add many items at once, choose Paste from Sheet.
• Below the table, the Total, Paid and Balance Due appear.

Locking the selling price in invoices and the point of sale

If you want staff to sell only at the product’s recorded price without editing it, or not to sell below a certain limit, use the following options:

Goal	Option	Where
Prevent editing the price, name and description in the invoice, and prevent entering unrecorded items	Manual Item Edits and Custom Entry	Invoicing Settings › Invoice Configuration
Allow editing the price, as long as it isn’t below a minimum	Minimum Sales Price Calculation + the product’s Minimum Price	Invoicing Settings › Pricing & Discounts
Prevent editing the price or discount in the point of sale	The Edit Product Price and Add Discount permissions	Roles

1. Manual Item Edits and Custom Entry

1. Open Invoicing Settings, then the Invoice Configuration section.
2. Turn off Manual Item Edits and Custom Entry (when it’s on, it shows Allowed, which is the default).
3. Click Save.

After turning it off, when you create an invoice:

• The Unit Price comes from the product (or the price list) and can’t be edited.
• The item name and Details can’t be edited.
• You can’t enter an item that isn’t recorded as a product or service (custom entry); you must choose the item from the list.
• When editing the invoice, you can’t change the product in the row.
• Editing the Qty, Discount and Tax stays available.

This applies to sales invoices, estimates, sales orders, credit and debit notes, and refunds.

2. Minimum Sales Price Calculation

It lets staff edit the price, but prevents selling below the Minimum Price set for the product:

1. In Invoicing Settings › Pricing & Discounts, turn on Advanced Pricing Options (requires the inventory app).
2. In Minimum Sales Price Calculation, choose:
   • Include Tax (the default): the minimum is compared with the unit price after tax.
   • Exclude Tax: the minimum is compared with the unit price before tax.
3. Save, then open each product and enter the Minimum Price in the pricing details.

• When selling below the limit, a message appears that the product has a minimum price, and the invoice isn’t saved.
• The price is calculated after discount, so the limit can’t be bypassed with an item or invoice discount.
• The minimum is in the account’s main currency, and the invoice price in a foreign currency is converted for the comparison.
• It applies to invoices, estimates and sales orders, and also when point of sale invoices are saved.
• A user with the Allow to Sell Under Product Minimum Price permission isn’t subject to the limit.

To show staff the minimum and the last selling price while creating the invoice, turn on Display Last Selling Price and Minimum Price in Invoice Configuration.

3. Locking the price in the point of sale

In the point of sale, the price is locked with permissions (there’s no setting for this in Point of Sale Settings):

• From Roles, remove the Edit Product Price permission from the cashier role; the edit price button disappears from the point of sale screen.
• Remove the Add Discount permission to prevent discounts on items and the invoice in the point of sale.
• The Minimum Price still applies when the invoice is saved, and the price comes from the point of sale’s default price list.

Price lists

If the client has a Price List, the item takes its price from it (otherwise from the default list or the product price). To prevent changing the list in the invoice, leave the Change Price List When Creating Invoices option turned off.

Tax on the invoice

Choosing the tax for each item

• The tax is chosen for each item from the Tax column, or choose No Tax for an item with no tax.
• The tax is filled in automatically according to the Default Tax setting in Sales Settings › invoicing settings: Match Product Tax (the default, takes the product’s tax), No Tax, or Specific Tax. You can make Require Tax 1 so no invoice is saved without tax.
• To add a tax or edit its name or rate, choose Tax Settings from the tax list, or open Tax Settings.

Is the price tax-inclusive or tax-exclusive?

This is set by the Included column for each tax in Tax Settings:

Setting	What happens to the price you enter	Example: price 1,000 and 15% tax
Exclusive (the default)	The price is without tax, and the tax is added to it.	Tax 150, and total 1,150.
Inclusive	The price includes tax, and the tax is extracted from it.	Net 869.57, tax 130.43, and total 1,000.

• The discount is applied first, then the tax is calculated on the amount after discount.
• If you choose two taxes for the same item, each one is calculated on the item’s net amount; the second tax isn’t calculated on the first.
• Each invoice keeps the tax rate from when it was created. If you change the tax rate later and then edit the invoice, a message about the tax value change appears with the Update or Ignore options.

Is the tax recorded in the tax account automatically?

Yes, as long as you choose the tax type on the item. The system doesn’t add tax on its own just because you entered the price without tax; you must choose the tax (such as VAT) in the Tax column for each taxable item. Then the tax is calculated, and when you save the invoice, an automatic journal entry records its amount in the tax account.

Example: an invoice worth 1,000, with 15% VAT (exclusive) chosen on the item:

Account	Debit	Credit
Client	1,150.00
Sales		1,000.00
VAT collected		150.00
Total	1,150.00	1,150.00

• For each tax, a [tax name] collected account is created under [tax name] payable in Current Liabilities, and a separate line is recorded in it for each tax on the invoice.
• To view the journal entry, open the invoice and click the journal entry link, then Open Full Entry (requires the accounting app and the permission to view journal entries).

The tax isn’t recorded in the tax account in the following cases:

Case	Reason
No tax was chosen on the item (No Tax)	There’s no tax on the item at all. Choose the tax type in the tax column.
The invoice is a Draft	Drafts don’t create journal entries until you issue them.
Sales routing is set to Cancel Account Routing	No journal entry is created for the whole invoice.
The accounting app isn’t enabled	No journal entries are created.

The tabs below the items

Tab	What it contains
Discount & Adjustment	A discount on the whole invoice (Percentage or Amount), and the Adjustment to fine-tune the final value.
Deposit	The Advance Deposit required from the client, or recording an amount already paid with the treasury and payment method.
Shipping Details / Warehouse	The shipping option, the Shipping Fees and their tax, the warehouse the goods are issued from, and Select warehouse per item.
Attach Documents	Upload files or choose files uploaded earlier.
Automatic Reminders	Automatic reminders linked to the invoice, such as payment due dates.
Terms and Conditions	The terms that appear on the invoice when it’s printed or sent.

Then add the Notes / Terms if you want (see Notes on the invoice).

The warehouse the goods are issued from

When you sell products whose inventory is tracked, the quantities are deducted from the Warehouse selected in the Shipping Details / Warehouse tab, and the cost of sales journal entry is recorded on that warehouse’s account:

Account	Debit	Credit
Cost of sales	100.00
Account of the warehouse the goods were issued from		100.00
Total	100.00	100.00

• Before saving, make sure the chosen warehouse is the one where the goods actually are (such as the finished goods warehouse, not the raw materials store).
• If the items are in more than one warehouse, turn on Select warehouse per item, and set each item’s warehouse from the Store column.
• The warehouse is filled in automatically with the user’s default warehouse, then the branch’s, then the Primary warehouse. The field doesn’t appear if the user has permission on only one warehouse.

To avoid this on all invoices, make the correct warehouse the default for selling: from Employee Default Warehouses for sales staff, or the branch’s Default Warehouse from Inventory Settings, or make it Primary from Warehouses.

Notes on the invoice

The system has two different types of notes on the invoice:

	Notes / Terms	Add Note / Attachment
What they are	Text that appears inside the printed invoice and for the client.	Internal notes and follow-ups on the invoice (with attachments and appointments), which can be shared with the client.
Where they are	In the create/edit invoice form, below the items and tabs.	A button on the invoice view page after saving it (or in the options menu).
When they appear	Always, on every invoice.	Only when the Follow Up Clients app is enabled, and for users with the permission to add notes.
Appear when printed	Yes (through the layout).	No.

The Notes / Terms field

• A text editor that supports bold, italic, colors, lists and links.
• It’s filled in automatically with the Notes content set in the Invoice layout; if you have fixed text (such as terms or bank account details), add it to the layout so it appears on every invoice.
• Warning: when you change the Invoice layout in the form, the notes are replaced with the new layout’s notes, and what you wrote before the change is deleted. So choose the layout first, then write the notes.
• The notes appear in the printed invoice, the PDF file and for the client, through the {%invoice_notes%} placeholder in the layout. If you edit the layout and delete this placeholder, the notes won’t be printed.
• The notes can be edited after the invoice is issued, even with e-invoicing turned on (which prevents editing the rest of the invoice data).

Add Note / Attachment

1. Turn on the Follow Up Clients app from the apps manager (if it isn’t on).
2. Open the invoice, and click Add Note / Attachment (or from the More Options / “…” menu on small screens).
3. Write the note, attach the files, and set the action or appointment if there is one. To show it to the client in their portal, turn on sharing with the client.
4. Save; it appears in the Notes / Attachments tab on the invoice page.

The difference between notes and terms and conditions

The Terms and Conditions tab is different from the notes field: it’s for choosing previously saved terms that the client must agree to before paying online. It appears only when the invoice is sent by email (not for printing), and it doesn’t appear in estimates, notes or refunds.

Cash or credit invoice?

The invoice has no separate field for choosing “cash” or “credit”; the invoice type is set by how you record the payment when creating it:

Invoice type	What to do in the invoice form	Result
Cash	Turn on Already Paid, and choose a Payment Method and treasury.	A payment for the full amount is recorded, and the invoice is saved as Paid.
Credit	Leave Already Paid unchecked, and set the Payment Terms in days (such as 30).	The amount stays owed by the client, the invoice is saved as Unpaid, and the due date is calculated automatically.
Partly cash, the rest on credit	From the Deposit tab, record the paid amount in the Advance Deposit (amount or percentage) with Already Paid.	A payment for the paid amount is recorded, and the invoice is saved as Partially Paid.

Credit invoices and payment terms

• Due Date = invoice date + the number of Payment Terms days. If the field is left empty, the invoice is due on the day it’s issued.
• After the due date passes without payment, the invoice shows as overdue.
• You can print the due date on the invoice by adding it from the Custom Fields in the invoice layout, and set up reminders for the client from the Automatic Reminders.
• When the client pays later, open the invoice and click Add Payment.

Making all invoices cash by default

If most of your sales are cash, turn on Mark Invoices As Already Paid By Default from Sales Settings › invoicing settings › Payments & Credits. Already Paid then appears checked automatically on every new invoice, and you can uncheck it manually for a credit invoice.

Client credit limit

If you turn on the Credit Limit or Credit Period Limit from the client settings and set their values for the client, the system prevents saving a credit (or partially paid) invoice if the client exceeds the limit, with the message Client passed the credit limit or Client passed the credit period. This restriction doesn’t apply to a fully paid invoice.

Journal entries in both cases

	Cash invoice	Credit invoice
Invoice entry	Debit the client, and credit sales and tax.	Debit the client, and credit sales and tax.
Payment entry	Debit the treasury, and credit the client (at the same time).	None until the client pays.
Client balance	Zero.	Debit by the invoice value until it’s paid.

Recording the payment

• If the client paid the invoice amount, turn on Already Paid.
• Choose a Payment Method and treasury, and enter the Ref No. if there is one. The default payment method and primary treasury appear automatically.
• If the client paid with more than one method, choose Multiple and add a row for each payment with its payment method, treasury and amount.
• If the client has earlier payment credit, you can choose Client Credit as the payment method.

Preview and save

• Preview: to view the invoice in the browser or as PDF before saving (if preview is enabled in the invoicing settings).
• Save as Draft: the invoice is saved without a number or journal entries until you issue it.
• Save & Send Email / Save & Don’t Email: to email the invoice to the client when saving, or not.
• Save & Print / Save & Don’t Print / Save & Add New: choose from the arrow next to the save button.

After saving the invoice

You go to the invoice page, where you can Print the invoice, download it as PDF or send it, Add Payment, edit, clone or delete it, and follow the Payments, Activity Log and Invoice Profit tabs. The invoice journal entry is also created automatically, along with the cost of sales entry for inventory products.

FAQs

Why was the cost of sales entry recorded on raw materials inventory instead of finished goods inventory?

Because the invoice was issued on the primary warehouse (the raw materials store). Edit the invoice, choose the finished goods warehouse in the warehouse tab, then save, and set the default warehouse for selling as in The warehouse the goods are issued from.

Why doesn’t the add note button appear on the invoice?

The Add Note / Attachment button on the invoice page only appears when the Follow Up Clients app is enabled, and it requires the permission to add notes. To write a note that appears on the printed invoice, use the Notes / Terms field in the invoice form (from editing the invoice). See Notes on the invoice.

I wrote notes but they don’t appear on the printed invoice. Why?

Make sure the invoice layout contains the {%invoice_notes%} placeholder in the notes section, and that you didn’t change the layout after writing the notes.

How do I set whether the invoice is credit or cash?

For a cash invoice, turn on Already Paid and choose the payment method and treasury. For a credit invoice, leave Already Paid unchecked, and set the Payment Terms in payment days. Details are in Cash or credit invoice?.

Can I print the word “cash” or “credit” on the invoice?

There’s no ready placeholder for that, but you can show the Payment Status, Payment Method or Due Date from the Custom Fields in the invoice layout.

I entered the amount without tax. Is the tax recorded in the tax account automatically?

Yes, as long as you choose the tax type in the Tax column for each item; without choosing it, no tax is calculated and nothing is recorded in the tax account. If the tax is Exclusive, it’s added to the amount, and recorded in the tax collected account when the invoice is saved.

Why doesn’t the tax appear on the item?

Because the product has no tax and the default setting is Match Product Tax, or because the setting is No Tax. Choose the tax manually, set a tax for the product, or change the default tax.

Why doesn’t the second tax column appear?

It appears only if you have two or more taxes enabled in Tax Settings.

How do I lock the selling price in invoices?

Turn off Manual Item Edits and Custom Entry from Invoicing Settings, or set a Minimum Price for each product with Minimum Sales Price Calculation. Details.

How do I lock the price in the point of sale?

Remove the Edit Product Price and Add Discount permissions from the cashier role.

I turned off item edits but a product’s price is still editable. Why?

Because the product’s recorded price is 0; record a selling price for it.

The total is larger than expected. Why?

Most likely you entered a tax-inclusive price while the tax is Exclusive, so it was added again.