Create a sales invoice - detailed version
Summary
Resolution
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.
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.
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:
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.
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.
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:
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.
Related Solutions
Solution Properties
- Solution ID
- 222001000100980
- Last Modified Date
- Thu May 01 12:27:19 UTC 2025
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