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A Sales Invoice is a bill that you send to your Customers against which the Customer makes the payment.

The Sales Invoice represents an accounting transaction. When the Sales Invoice is submitted, the system adjusts the receivable balance and records income against the Customer Account.

To access the Sales Invoice list, go to: > Home > Accounting > Accounts Receivable > Sales Invoice

1. Prerequisites

Before creating and using a Sales Invoice, it is advised to create the following first:

2. How to create a Sales Invoice

A Sales Invoice is typically generated from either a Sales Order or a Delivery Note, wherein the Customer’s item details are automatically populated into the Sales Invoice. However, you can also create a Sales Invoice directly, such as in the case of a POS invoice.

To automatically populate details in a Sales Invoice, click on “Get Items from”. The information can be retrieved from a Sales Order, Delivery Note, or a Quotation.

For manual creation, follow these steps:

Navigate to the Sales Invoice list and click on New.
Select the Customer.
Set the Payment Due Date.
In the Items table, select the Items and specify the quantities.
Prices will be automatically fetched if Item Price is available; otherwise, manually add a price in the table.
The posting date and time will be set to the current; you can edit it after checking the checkbox below Posting Time to make a backdated entry.
Save and Submit.

2.1 Additional options when creating a Sales Invoice

Include Payment (POS): If this invoice is for retail sales / Point of Sale. Know more here.
Is Return Credit Note: Tick this if the customer has returned the Items. To know more details, visit the Credit Note page.

For India: e-Way Bill No: According to GST rules, transporters need to carry an e-Way Bill.

2.2 Statuses

These are the statuses automatically assigned to Sales Invoices:

Draft: The invoice is saved but not yet submitted.
Submitted: The invoice has been submitted to the system, and the general ledger has been updated.
Paid: The customer has made the payment, and a Payment Entry has been submitted.
Unpaid: The invoice is generated, but payment is pending within the payment due date.
Overdue: Payment is pending beyond the payment due date.
Canceled: The Sales Invoice is canceled for any reason. Once an invoice is canceled, its impact on Accounts and Stock is reversed.
Credit Note Issued: An item has been returned by the customer, and a Credit Note is created against this invoice.
Return: It is assigned to the Credit Note created against the original Sales Invoice. However, you can also create a standalone Credit Note.
Unpaid and Discounted: Payment is pending, and any ongoing subscription has been discounted using Invoice Discounting.
Overdue and Discounted: Payment is pending beyond the payment due date, and any ongoing subscription has been discounted using Invoice Discounting.

3. Features

3.1 Dates

Posting Date: This is the date when the Sales Invoice impacts your accounting records, affecting your General Ledger and all balances for that accounting period.
Due Date: This is the date by which payment is expected, especially if the sale was made on credit. The credit limit can be specified in the Customer master for reference.

3.2 Accounting Dimensions

Accounting Dimensions allow you to categorize transactions by attributes such as Territory, Branch, Customer, etc. This facilitates the viewing of accounting statements based on the chosen dimension(s). For further information, please refer to the help documentation on the Accounting Dimensions feature.

Note: By default, Project and Cost Center are considered dimensions.

3.3 Customer PO Details

Customer’s Purchase Order: Monitor the receipt of customer Purchase Order numbers to avoid duplicating Sales Orders or Invoices for the same Purchase Order received from the customer. Further configuration for validating customer Purchase Order numbers can be done in Selling Settings.
Customer’s Purchase Order Date: The date when the customer submitted the Purchase Order.

3.4 Address and Contact

Customer Address: This refers to the billing address of the customer.
Contact Person: If the customer is a company, the designated contact person’s information is retrieved if it’s set in the Customer form.
Territory: The territory indicates the region to which the customer belongs, sourced from the Customer form. The default value is All Territories.
Shipping Address: This denotes the address where the items will be delivered.

For transactions within India, the following details are recorded for GST (Goods and Services Tax) compliance. You can input these particulars in both the Address and Customer master sections, and they will be automatically populated in the Sales Invoice:

Billing Address GSTIN (Goods and Services Tax Identification Number)
Customer GSTIN
Place of Supply
Company GSTIN

3.5 Currency

You have the option to specify the currency in which the Sales Invoice is to be issued. This currency can be obtained from the Customer master record or from previous transactions such as Sales Orders.

Please note that selecting the Customer’s currency is primarily for the customer’s reference, as accounts will be posted in the Company’s base currency. Further details click here.
Additionally, you can maintain a separate receivable account in the Customer’s currency. This ensures that receivables for this invoice are recorded in the same currency. More information on this can be found in the Multi Currency Accounting section.

3.6 Price list

If you select a Price List, then the item prices will be fetched from that list. Ticking on ‘Ignore Pricing Rule’ will ignore the Pricing Rules set in Accounts > Pricing Rule.

Read Price List documentation to know more.

3.7 The Items table

BizCentric have immutable ledger which changes the rules for cancellation of stock entries and posting backdated stock transactions. Learn more here.

Update Stock: Selecting the “Update Stock” checkbox will trigger an update to the Stock Ledger upon submission of the Sales Invoice. If a Delivery Note has been created, the Stock Ledger will be adjusted accordingly. If you opt to skip the creation of a Delivery Note, make sure to check this checkbox.
Utilize this feature to swiftly add items to the Items table by scanning their barcodes using a barcode scanner. Refer to the documentation on tracking items using barcodes for further details.
Enable this option to allocate a commission to the Sales Person and Sales Partner based on the net amount of this line item. If disabled, this line item will not be included in the commission calculation.
The Item Code, name, description, Image, and Manufacturer will be fetched from the Item master.
Discount and Margin: You can apply a discount on individual Items percentage-wise or on the total amount of the Item.
Rate is fetched if set in the Price List and the total Amount is calculated.
Drop Ship: Drop Shipping is when you make the sales transaction, but the Item is delivered by the Supplier.
Accounting Details: The Income and Expense accounts can be modified here if desired. If this Item is classified as an Asset, it can be linked here. This feature proves useful when selling an Asset.
Deferred Revenue: If the income for this Item will be billed over the coming months in parts, then tick on ‘Enable Deferred Revenue’.
Item Weight: This section displays the weight details per unit and Weight UOM (Unit of Measure), which are retrieved if specified in the Item master.
Stock Details: The following information will be retrieved from the Item master:
Warehouse: Indicates the warehouse from which the stock will be sourced.
Available Quantity at Warehouse: Reflects the quantity currently available in the selected warehouse.
Batch Number and Serial Number: If your item is serialized or batched, you’ll need to input the serial number and batch details in the Items table. Multiple serial numbers can be entered in one row, each on a separate line, and the quantity of serial numbers entered must match the quantity of items.
Item Tax Template: You have the option to apply a specific tax amount to this item by setting an Item Tax Template.
References: Any references to a Sales Order or Delivery Note from which this Sales Invoice was created will be noted here, along with the delivered quantity.
Page Break: Selecting this option will insert a page break just before this item when printing.

3.8 Timesheet

If you wish to invoice employees for their project-based hourly work, they can fill out timesheets detailing their billing rates. When creating a new sales invoice, select the project for which billing is required, and the relevant timesheet entries for that project will be automatically retrieved.

If your company’s employees are working at a specific location that requires billing, you can generate an invoice based on the timesheet entries.

To know more, visit this page.

3.9 Taxes and Charges

The Taxes and Charges will be fetched from the Sales Order or Delivery Note.

Visit the Sales Taxes and Charges Template page to know more about taxes.

The total taxes and charges will be displayed below the table.

To add taxes automatically via a Tax Category, visit this page.

Make sure to mark all your taxes in the Taxes and Charges table correctly for an accurate valuation.

Shipping Rule

A shipping rule assists in determining the shipping cost for an item, which typically increases based on the shipping distance. To know more, visit the Shipping Rule page.

3.10 Loyalty Points Redemption

If the Customer is enrolled in a Loyalty Program, they can choose to redeem it. To know more, visit the Loyalty Program page.

3.11 Additional Discount

Here you can establish any further discounts applicable to the entire invoice. These discounts may be calculated based on the Grand Total (after taxes and charges) or the Net Total (before taxes and charges). They can be specified either as a percentage or a fixed amount.

3.12 Advance Payment

For high-value items, sellers may require an advance payment before proceeding with the order. Clicking the ‘Get Advances Received’ button opens a popup window displaying orders for which advance payments have been received. To know more, visit the Advance Payment Entry page.

3.13 Payment Terms

The payment for an invoice may be made in parts depending on your understanding with the Supplier. This is fetched if set in the Sales Order. To know more, visit the Payment Terms page.

3.14 Write Off

A write-off occurs when the customer pays an amount less than the invoice total. Although this difference may be small, such as 0.50, over numerous transactions, it can accumulate into a significant sum. To maintain accounting accuracy, this variance amount is ‘written off’.

To know more, visit the Payment Terms page.

3.15 Terms and Conditions

There may be certain terms and conditions on the Item you’re selling, these can be applied here. Read Terms and Condition documentation to know how to add them.

3.16 Transporter Information

If you delegate the transportation of items to their delivery destination, you can include transporter details. Note that this differs from drop shipping.

Transporter: The supplier responsible for transporting the item to your customer. The transporter feature must be enabled in the supplier master to select the supplier here.
Driver: You can specify a driver who will operate the mode of transport.

These details are typically retrieved from the delivery note.

The following information can be recorded:

Distance in kilometers Mode of transport, such as road, air, rail, or ship.

For India, GST:

GST transporter ID Transport receipt number Vehicle number.
The GST vehicle type can be modified.
The transport receipt date and driver name will be fetched automatically.

3.17 Printing Settings

Letterhead

You have the option to print your sales invoice on your company’s letterhead. Learn more about this feature here.

Group Same Items

Enabling the “Group Same Items” option will consolidate identical items listed multiple times in the items table. This simplifies the appearance of your printed invoice.

Print Headings

You can customize the headings on your sales invoice when printing the document. This can be done by selecting a predefined print heading. To create new print headings, navigate to: Home > Settings > Printing > Print Heading. Find out more about this feature here.

Additional Printing Options

You can choose to print the sales invoice without displaying the amounts, which can be useful for high-value items. Additionally, you have the option to group identical items together in a single row when printing.

3.18 GST Details (for India)

The following details can be set for GST:

GST Category
Invoice Copy
Reverse Charge
E-commerce GSTIN
Print Heading

3.19 More Information

The following Sales details can be recorded:

Campaign: If this invoice is a part of an ongoing sales Campaign, it can be linked. To know more, visit the Campaign page.
Source: A Lead Source can be tagged here to know the source of sales. To know more, visit the Lead Source page.

3.20 Accounting Details

Debit To: Specify the account where receivables will be recorded for this customer.
Is Opening Entry: Select “Yes” if this entry is intended to affect your accounts as part of an opening balance adjustment. For instance, if you are transitioning from another ERP system to BizCentric during the fiscal year, you may opt to use an opening entry to update account balances in BizCentric.
Remarks: Add any supplementary comments or notes regarding the sales invoice in this field.

3.21 Commission

If the sale was facilitated through one of your sales partners, you can input their commission details in this section. Typically, this information is retrieved from the Sales Order or Delivery Note.

3.22 Sales Team

Sales Persons: BizCentric allows you to add multiple Sales Persons who may have worked on this deal. This is also fetched from the Sales Order/Delivery Note.

3.23 Automatically Fetching Item Batch Numbers

If you’re selling an item from a specific Batch, BizCentric will automatically retrieve a batch number for you when “Update Stock” is enabled. The batch number will be selected based on the First Expiring First Out (FEFO) principle. This approach is a variation of First In First Out (FIFO), prioritizing items with the nearest expiry dates.

It’s important to note that if the first batch in the queue cannot fulfill the order specified in the invoice, BizCentric will select the next available batch that can fulfill the order. If no batch meets the requirements, BizCentric will halt its attempt to automatically fetch a suitable batch number.

3.24 POS Invoices

Consider a scenario where the retail transaction is carried out. For e.g.: A retail shop. If you check the Is POS checkbox, then all your POS Profile data is fetched into the Sales Invoice and you can easily make payments.

Also, if you check the Update Stock the stock will also update automatically, without the need for a Delivery Note.

3.25 After Submitting

On submitting a Sales Invoice, the following documents can be created against it:

4. More

Accounting Impact

All sales transactions need to be associated with an “Income Account,” which corresponds to an account within the “Income” section of your Chart of Accounts. It’s advisable to categorize your income by type, such as product income or service income. Each row in the Items table must have an Income Account specified.

To streamline this process, you can set default Income Accounts for items either in the Item settings or Item Group settings.

Additionally, the Customer’s account is affected by the sale, which is automatically determined by the “Debit To” field in the heading section.

You may also specify the Cost Centers where your income should be allocated. Cost Centers help assess the profitability of different business lines or products. Setting a default Cost Center in the Item master can simplify this process.

Accounting entries (GL Entry) for a typical double entry “Sale”:

When booking a sale (accrual):

Debit: Customer (grand total)
Credit: Income (net total, minus taxes for each Item)
Credit: Taxes (liabilities to be paid to the government)

> To see entries in your Sales Invoice after you “Submit”, click on “View Ledger”.

Sales Invoice