Create a sales invoice - detailed version

Summary

How to add more detail to invoices, such as adding discounts, delivery address, changing the VAT rate, etc in Sage Accounting.

Resolution

Set the invoice due date >

The credit terms you've set on the the customer's record populate the due date. You can change the due date from 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.

Specify a delivery address >

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

If you don't have a separate delivery address, the delivery and invoice address can be the same.

If you don't have an address for your customer, just enter text such as ‘No address’ or ‘TBC’ into the address fields in order to create and save your invoice.

Learn how to edit the address on the customer’s record at a later date.

Change a ledger account >

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 ledger account for Office Supplies.

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

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

If you add a product or service to the invoice, the product or service record provides the ledger account.

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

Read the Chart of Accounts introduction for more information.

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 inclusive of VAT reduces the amount the customer needs to pay for the invoice and 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 exclusive of VAT reduces the amount the customer needs to pay but doesn't affect the amount of VAT due. You must enter the discount when recording the payment if you want to apply it after calculating VAT.

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 that 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, Business Settings, and then Analysis Types. Once you've created them, add them to an invoice by selecting the ellipsis at the end of each item line:

Learn more about analysis types

Change VAT rate >

The VAT rate used is the one set as the default on the customer record when you create an invoice. The VAT rate updates to use the one saved on the product or service record when you add poducts or services.

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

Add bank details, notes, or terms and conditions >

You have space to add terms and conditions and extra notes on each invoice you create. 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, Business Settings, and then Document Preferences. Scroll down 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 >

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

Create an invoice for a CIS contact, or use VAT reverse charge >

You can apply CIS deductions and reverse charge VAT to sales invoices for your CIS contacts.

You need to set up CIS for your business to ensure the correct CIS ledger accounts are added to your chart of accounts. You'll also need to set up your CIS contacts so you can then select a CIS contact on your invoice to ensure VAT is dealt with correctly.

Find out how to set up for CIS and create an invoice for a CIS contact.

View VAT breakdown >

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

If you want to see a further breakdown of the VAT included on your invoice, you can select the View VAT Analysis link. This opens a table that 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:

Add attachments >

Attachments provide a great way to keep track of any files you have that relate to an invoice. For example, you could attach sales literature such as a PDF brochure, or a product image. Your customer can see the files you've attached if you email the invoice to them.

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

Learn more about adding attachments

Customise your invoice >

You can see the customisation settings using the Customise menu at the botton of the New Sales Invoice page. This saves you time when you want to customise invoices for your business.

Using stock items with sales invoices >

Creating a sales invoice reduces the amount in stock

We track stock by recording stock movements each time you buy and sell stock. We track a 'Goods out' transaction whenever you record a sales invoice tha includes a stock item. We automatically reduce your stock levels for this item.

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

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

We recommend that you save the invoice as a draft until you've recorded all of your purchase transactions. You can manually adjust your stock levels to change the number of items you have in stock if needed.