Invoice is a document in which you charge your customers for the goods or services that you supply to them. Let us see the way invoices work in Zoho Books.
- Status of Invoices
- Creating a New Invoice
- Customer Details
- Item Details
- Payment Options, Terms & Conditions, Templates
- Recording a Payment Manually
- Adding Services as Items in your Invoice
- Adding Unbilled Expenses, Bills & Projects in your Invoices
- Creating an invoice from a Project
- Send Invoices to Customers
- Scheduled Invoices
- Attaching Files to your Invoice
- Payments Received
- Clone your Invoice
- Write-Off or Making your Invoice Void
- Other Actions
Status of an Invoice
When Invoices are created in Zoho Books, they will be in one of the following status:
|Draft||Invoices when first created will be in Draft status before sending them to the customer.|
|Due||Invoices once sent to the customer with a due date for payment, will be marked as Sent.|
|Overdue||Once the due date for payment is crossed, it will be marked as Overdue.|
|Partially Paid||When only a part of the payment is recorded for the invoice, it will be marked as Partially Paid.|
|Paid||Once the entire payment is recorded for the invoice, it will be marked as Paid.|
Creating a New Invoice
Invoices in Zoho Books can be created in two ways:
- Click on the ‘+’ icon either next to the Invoices tab on the left navigation menu.
- Click on the Invoices tab on the left navigation menu. Once it opens, click on button on top of the page.
A new invoice creation form will open up where you can enter the information of the customers and the products or services that you are selling to them. Let us look at the main fields that need to be entered here.
FIelds relating to the customer in the invoice include:
The name of the customer to whom you raise the invoice. You can either pick the customers from the list you have already created or add a new customer by selecting the New Customer option.
Once you have selected a customer, Zoho Books will show any unpaid invoices of the customers and the customers address.
- For Unpaid Invoices, a notification will be shown just below the Customer Name field and by clicking it you will be able to view all the unpaid invoices with the amount due for the selected customer.
- The address of the customer can also be edited from the create invoice screen.
|Invoice Number||An invoice number is a unique Id for the invoices created. This field generates a default invoice number.
Click on the Settings icon next to the field and a pop-up will appear where you can choose to auto-generate the invoice numbers every time or manually add the invoice number each time you create an invoice.
|Order Number||If you wish to enter an order number as a reference to this invoice, it can be added here.|
|Invoice Date||Date on which the invoice is generated.|
|Payment Terms||You can set the due date of the invoice by selecting one of the options in the terms drop down. You can also create a new payment term by clicking on the New Term option from the drop down and set your custom name and due date period.
P.S: You can associate a specific payment term to your customer by adding it at the time of creating the contact. When you create the invoice for the customer, the associated payment term will be applied for the invoice.
|Due Date||The date by which the payment for the invoice is to be made by the customer. This is based on the invoice due date and the payment terms.|
|Price List||Select the price list you wish to apply to the invoice from the price list options you have created. Learn more about Creating Price Lists.
P.S: Price List field will appear in the invoice only if price lists feature is enabled. Learn more about Enabling Price List.
|Sales Person||You can type to add a sales person or choose a name that already exists. This field is very helpful in identifying the sales person who closed a deal.|
|Item Rates Are||You can choose your line item’s rates to be Tax Exclusive or Tax Inclusive. To enable this tab, go to Settings > Preferences > General and check the option Enable the option to mark your sales transaction as either Tax Exclusive or Tax Inclusive
Let us look at some of the item fields to be added in the invoice.
Select an item from the list of items shown in the drop down. If you wish to add a new item, you can select the Add New Item option from the drop down list. Learn more about Creating New Items.
|Item Details||Item Name:
Name of the item that you are selling to your customer.
Description of the item that you are selling to your customer.
|Quantity||The number of items to be billed in the invoice.|
|Rate||The rate of the item.
It can either be Tax Inclusive or Tax Exclusive.
|Discount||Discount can be applied at the item level or at the invoice level. Learn more about Discount Settings .
At item level, you can set discounts for each item you add in the invoice.
At invoice level, you can set discount for the total amount on the invoice.
|Tax/Tax Group||Tax rates can be applied to items, if applicable. Choose the tax/tax group from the drop down.
Click here to learn more about Taxes.
|Amount||The final amount of the item after applying the discount and taxes.|
Invoice Level Discount / Charges
|Adjustment||You can adjust your total invoice amount by entering a possitive or negative amount which you want to apply in the adjustments.|
|Discount||Discount at an invoice level will be applied to the sub total of all item rates put together.|
|Shipping Charges||Charges you wish to apply for shipping the product to your customer.|
Payment Options, Terms & Conditions, Templates
|Customer Notes||Notes entered here will be displayed on the invoice sent to the customer.|
|Payment Options||Payment gateways like PayPal, worldpay etc. through which the customer can make payment for the invoice.
You can also configure payment gateways directly from the invoice.
|Terms & Conditions||Customize the terms & conditions section that will be displayed on the invoice. You can also customize the terms & conditions by navigating to Settings > Prefernces > Invoices and fill in the Terms & Conditions box.|
|Template||You can also change the Template of the invoice, by clicking on the Change and select another template you create.
You can create and edit templates by clicking the Gear icon and navigating to More Settings > Templates and selecting templates under Invoice Templates.
Once the details are filled, you can click on
Save as Draft: you can edit the invoice before sending it to the customer
Save and Send: customers will receive a copy of the Invoice in their email.
Other options include Save and Share, Save and Send Later and Save and Print.
Note: If you don’t have the customer’s email address, you can click on ‘Save as Draft’. After doing so, the invoice will be shown on the right and you need to click on More > Mark as Sent.
Recording a Payment Manually
If your customer has chosen to pay you in person instead of the online payment options, you can record a payment manually for an invoice.
Click on any invoice for which you want to record the payment. Click on the Record Payment button.
Fill in the required details and click on Record Payment to record the payment manually.
Adding Services as Items in your Invoice
To add services in your invoice, the item must be firstly selected as a service under service type while creating it.
Description of the services that you invoice can be added under the item description for each service item.
Adding Unbilled Expenses, Bills & Projects in your Invoices
An invoice can be created by adding the unbilled expenses and projects associated with the customer.
Unbilled Expenses to Generate Invoice
Click on Unbilled Expenses to view the expenses which are yet to be billed to the customer. You can also add the unbilled expense(s) to an invoice.
Select the unbilled expenses to add with the invoice and click on the Add button.
Unbilled Bills to Generate Invoice
Click on Unbilled Bills to view the Bills which are yet to be billed to the customer. You can also add the unbilled Bill(s) to an invoice.
Select the unbilled Bill to add with the invoice and click on the Add button.
Unbilled Projects to Generate Invoice
Click on Unbilled Projects to view the projects which are yet to be billed to the customer. You can also add the unbilled project(s) to an invoice.
Select the project you wish to add under the items field in your invoice.
After the unbilled expenses & projects are added, the item field looks this way,
Creating an Invoice from a Project
Do you run projects for your customers in Zoho Books? Learn how to bill your customers from the project you work on.
- Navigate to the Timesheet tab and select a project that you are currently working on.
- From the actions tab present on the top, click on New Transaction and select Create Invoice.
- A Project Invoice Information will appear where you can enter the details to bill your customer.
|Bill up to||Select a date until when you would like to bill your customers for the work done.|
|How to sort data on invoice||Choose how the project, timesheet, tasks and user information should be displayed on the invoice, from the options provided in the drop down.|
|Show in item name||Select either the project, task or staff name to be displayed as the Item Name in the invoice.|
|Show in item description||Select from a list of options from the drop down to display as item description.|
If there are any unbilled expenses in this project and if you would like to bill your customer in the invoice, please check the Yes, include all unbilled expenses associated with this project.
- Click on Add and you will be navigated to the invoice creation page, with all the details added. Make changes in the invoice, if any and send it to your customer.
Send Invoices to Customers
To send the invoices to your customers by email, select the Email option from the Send drop down.
- Email can be sent to the contact persons added under the customer. If the contact person is not added, a new contact person can be added by clicking the Add Contact Person option.
- Email address mentioned under CC will not be added as a contact person.
- You can also choose to attach a Customer Statement and an Invoice PDF with this email.
- Email template can be edited by navigating to Settings > More Settings > Email Templates.
You can also schedule invoices to be sent out to your customers on a specific date.
Note: Only invoices which are in the Draft status can be scheduled.
You can schedule your invoices by following these simple steps:
- Open the Invoices module, under the Sales drop-down from the sidebar.
- Navigate to an invoice which is in the draft state.
- Click on the Clock icon, sandwiched between the Print and Email options, as shown in the image below:
- In the following pop-up, choose when to send the invoice from the options: Tomorrow, End of this week or End of this month or set up a date of your choice using the Custom option.
Note: By default, all scheduled invoices will be sent out at 08:00 AM.
- Once this is done, your invoice will be scheduled.
- You can edit the scheduled date by clicking on the Schedule option again, or the Edit option as shown in the image below:
- You can also choose to schedule an invoice while creating it, by choosing the Save and Send later option available on the bottom right corner of the invoice creation page, as shown in the image below:
P.S - Any action that changes the status of the invoice from Draft, like Marking the invoice as sent, Voiding, Recording Payment, Manually sending the invoice email, and Apllying credits, will result in the removal of the Scheduling.
Attaching Files to your Invoice
Attach bills, documents, sample files, product photos or any attachment that you need to provide your customers on your invoice.
To upload attachments to your invoice, kindly follow the below mentioned steps:
- Click on the Sales drop-down on the left sidebar, and select the Invoices tab.
- Create a new invoice or click on an existing invoice to which you which you wish to upload the attachment(s).
- Scroll down the New Invoice/Edit Invoice page and click on the Attach File option.
In the window that follows, select the file(s) which you wish to upload to invoice and click Open. You can upload a maximum of 5 files to an invoice. (Each file should not exceed 5 MB.)
This action will upload all your chosen files to the invoice.
- After uploading the attachments you can also choose to display them in the Client Portal. Enabling this option will also allow the attachments to be part of emailed invoices.
The payments you receive for your transactions in Zoho Books can be viewed under the Payments Received tab. A receipt for these payments can be seen here, with details such as date, payment mode and amount. Under More Information, you will be able to see the Bank Charges that were levied and under Deposit To, you will be able to see the account in which the money was deposited.
You can also view the payments received for a particular invoice by going to the Invoices tab. Open a Paid invoice and scroll down to view the payment details. These can also be edited or deleted from here. Clicking on the payment number # directly opens the receipt in the Payments Received tab.
Once you receive an online payment or manually record one in Zoho Books, the corresponding receipt will be displayed in the Payments Received tab. The following details will be included,
- Date - The date on which the payment was recorded.
- Payment # - Unique payment ID number.
- Customer Name - The customer who has made the payment.
- Invoice # - The reference ID of the invoice on which the payment was recorded.
- Mode - The means through which the payment was received (Cash, check, online gateways etc.).
- Amount - The amount paid by your customer.
- Edit - You can edit a payment yet to be matched in Zoho Books by opening it and clicking on the Edit icon.
- PDF - Download a payment receipt in portable form by simply opening it and selecting the PDF icon in the top left corner.
- Print - You can print a copy of the payment receipt by opening it and clicking on the print icon in the top left corner.
- Email - You can email a copy of the payment receipt by opening it and clicking on the Email icon.
- Attach File - You can attach files to a payment receipt from your computer and add it as an attachment while emailing it to your customer.
- Delete - A payment yet to be matched in Zoho Books can be deleted by opening it and clicking on the Delete button.
Clone your Invoice
Create a duplicate of the invoice you had previously in Zoho Books.
There are situations where you would just want to create a duplicate of an invoice to send to your customer. You can do that by following the steps below.
From the More drop down present on top of the invoice window, select the Clone option.
This will allow you to create a duplicate of your invoice, the date of the invoice will be on the date of cloning.
As you will be navigated to the invoice form, you can also edit details before saving the invoice.
Writing Off or Making your Invoice Void
You can always write-off an unpaid invoice and close it. Void an already sent invoice, and create another without changing the numbering order.
The invoice needs to be written off when you are sure that the customer is not going to pay and you need to close the invoice. The details report will have the balance due as NIL. To write off an invoice,
- Choose the invoice you wish to write off and click on the More drop down present on top-right corner.
- Select the Write Off option.
- Choose the date on which you wish to record the write off.
- Provide a reason for writing off the invoice.
- Click Write it off to write off the invoice.
- If there was an error in a customer invoice which you do not want to delete, you can simply void it. This will make sure that this invoice amount is not reflected in your reports and that your invoice numbering remains unaffected.
- The invoices that you’ve voided will still be listed for your reference and can be used to track customers who often cancel their orders.
- Any invoice that does not have a payment recorded to it can be marked as Void. If the invoice has been Paid/Partially Paid, the payments have to be deleted before marking it Void.
To void an invoice, select the Void option from the More drop-down present on top of the invoice window.
Note: Deleting an invoice will remove all traces of the invoice in the system while voiding will not remove the invoice from the system. It simply leaves that invoice out of the sales figures.
Filters are an easy way of listing your invoices within a specified view. It helps you get better views to suit your current needs.
In Zoho Books, you have two types of filters:
1. Default Filters
|All||All your invoices, will be listed under this view.|
|Draft||All those invoices, in the draft status, will be listed in this category. i.e. These invoices would have been saved as Draft.|
|Client Viewed||This view lists all those invoices, which your clients have viewed from their client portal.|
|Partially Paid||The invoices which have received partial payment and have dues remaining get listed in this view.|
|Unpaid||Use this filter to view all the invoices which have are Unpaid, on that date.|
|Overdue||Overdue invoices are those invoices which are in unpaid after the due date is crossed.|
|Paid||This view is used to assort all those invoices for which payment has been received in full.|
|Void||Invoices that have been marked as Void will be listed here.|
2. Custom Views
Custom Filters are specific views to filter your invoices based on your criteria.
For example, you might want to filter those invoices which are due for payment this week.
With Custom Views, you can simply create this filter, set criteria and use it to classify data.
To create a Custom View:
- Go to the Invoices tab under the Sales module in Zoho Books.
- Under the All Invoices drop down, present at the top left, select + New Custom View.
- In the following page, give an appropriate Name to your view, define Criteria, Column Preference (i.e. columns which you want to see in the filtered results).
- Click Save.
You can now see the invoices under your custom field by clicking on All Invoices and selecting the custom view that you created.