Invoice is a document sent to your client that indicates the products/services sold by you with the payment information that the client has to make. Learn everything about invoices in Zoho Books from here.
- 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 & Projects in your Invoices
- Send Invoices to Customers
- Payments Received
Status of Invoices
|Draft||Invoices when created will be in Draft status before being sent to the customer.|
|Due||Invoices once sent to the customer with a due date for payment, will be shown as Sent.|
|Overdue||Once the due date for payment is exceeded, it will be shown as Overdue.|
|Partially Paid||When the payment is made for a part of the items in the invoice, it will be shown as Partially Paid.|
|Paid||Once the payment is made by your customer for the invoice raised, it will be shown as Paid.|
Creating a New Invoice
Navigate to the Sales tab and click on the + icon either next to the Invoices or the icon placed on top of the invoice list to create a new invoice.
A new invoice creation form will open up for entering the details for creating a new invoice
You will now learn about filling up the fields related to your customers in the invoice creation form.
This field should contain the name of the customer whom you wish to raise an invoice for . You can either pick the customers from the list you have already created or you can add a new customer by selecting the New Customer option.
Note: While creating a new customer, If you wish to add transactions in a different currency, choose the currency from the drop down provided next to the currency tab.
Once you have selected a customer, Zoho Books will show if the customer has any unpaid invoices and the address of the customer.
- For Unpaid Invoices, a notification will be shown just below the Customer Name field and by clicking on the notification 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 an unique Id for the invoices created. This field generated an invoice number by default.
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 each 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 on which the payment for the invoice is to be made. This is based on the invoice due date and the payment term.|
|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 items’ rates to be Tax Exclusive or Tax Inclusive. To enable this tab, head to More Settings > Preferences > General and check the option ‘Enable the option to mark your sales transaction as either Tax Exclusive or Tax Inclusive’
You will now learn about filling up the fields related to the items you wish to add in the invoice creation form.
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 you are selling to your customer.
Description of the item you are selling to your customer.
|Quantity||The number of items to be billed in the invoice.|
|Rate||The rate of the item.
If the ‘Tax Inclusive’ option is enabled, kindly make sure that you add the the rate of the item inclusive of all taxes.
|Discount||Discount can either be applied to the invoice 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.
|Tax/Tax Group||Apply the tax rate to the item you are adding if applicable. Choose the tax/tax group from the drop down. Learn more about Taxes.|
|Amount||The final amount of the item after calculating the discount and taxes.|
Invoice Level Discount / Charges
|Adjustment||You can adjust your total invoice amount by entering a +ve or a -ve charge which you like to be applied.|
|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||Enter notes relating to the invoice which will be displayed on the invoice when sent to the customer.|
|Payment Options||Select the payment option that should be used for charging the customer or for the customer to make payment for the invoice. You can also choose to provide the customer with the option of making partial payments for the invoice by checking the Allow customers to make partial payments for this invoice option.
You can also configure payment gateways directly from the invoice.
Click on the Select Payment Modes and select the payment gateway that needs to be configured from the Configure and add more gateways from here section to add more payment gateways.
|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 > More 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 from Settings > More Settings > Templates and selecting templates under Invoice Templates.
Now click on Save as Draft to create the new invoice and save it in draft state for further review before sending it to the customer. Click on Save and Send to send the created invoice directly to the customer.
Recording a Payment Manually
If your customer has chosen to pay you in person instead of any of the online methods, you can record a payment for an invoice manually.
Click on any invoice towards which you wish to record the payment. Click on the Record Payment button.
Fill in the required details and click on Record Payment to record a payment manually.
Adding Services as Items in your Invoice
Invoice for services can be created by adding a custom description in the Items description field and can be billed on the hours of work and the rate for the service rendered to your customers. A custom description on the item will not be saved under items.
Adding Unbilled Expenses & 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 the Unbilled Expenses link to view the different expenses which are not yet billed to the customer that can be added with the invoice.
Select the unbilled expenses to add with the invoice and click on the Add button.
Unbilled Projects to Generate Invoice
Click on the Unbilled Projects link to view the projects that are yet to be billed under the customer that can be added with the 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,
Send Invoices to Customers
Send the invoices to your customers by email, select the Email option from the Send drop down or can choose to send the invoice by courier by selecting the Snail Mail option.
- 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.
- By selecting the Snail Mail option, a hard copy of the invoice will be sent to the mailing address of the customer.
- You need to buy credits to send the snail mail. For USA, 1 credit is required and for others 2 credits are required. A minimum of 5 credits needs to be purchased.
Once you click on Buy Credits, you will be redirected to the Zoho Store. Click on the Buy Now option and enter the number of credits you wish to purchase and make the payment.
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.
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.
- Edit - You can edit a payment yet to be matched in Zoho Books by opening it and clicking on the edit icon.
- Delete - A payment yet to be matched in Zoho Books can be deleted by opening it and clicking on the Delete button.
- Print - You can print a copy of the payment receipt by opening it and clicking on the print icon in the top left corner.
- PDF - Download a payment receipt in portable form by simply opening it and selecting the PDF icon in the top left corner.