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

Status Description
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

Click on the + icon either next to the Invoices tab or click on the Estimate +new button placed on top of the invoice window to create a new invoice.

Creating New Invoice

A new invoice creation form will open up for entering the details for creating a new invoice.

Creating New Invoice

Customer Details

You will now learn about filling up the fields related to your customers in the invoice creation form.

Customer Name:
This field should contain the name of the customer for whom you wish to raise an invoice. 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.

Creating New Customer in Invoice

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. Also, you can view the type of tax that is associated with the customer.

Unpaid Invoices Unpaid Invoices

Unpaid Invoices

Fields Description
Invoice Number An invoice number is an unique Id for the invoices created. This field generates 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.

Invoice Number

Invoice Number
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 + Configure Terms option from the drop down and set your custom name and due date period.

Payment term in invoice

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 Details

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.

Items in invoice

Fields Description
Item Details Item Name:
Name of the item you are selling to your customer.

Item Description:
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.
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 Apply the tax rate to the item (if applicable). You can also choose the Non-Taxable option from the Tax drop-down if you wish to exempt tax for the item. But, make sure you enter the reason for making the item non-taxable. Non-Taxable
Amount The final amount of the item after calculating the discount and taxes.

Note: You can drag and re-arrange the line items as per you convenience.

Invoice Level Discount / Charges

Fields Description
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.
Adjustment You can adjust your total invoice amount by entering a +ve or a -ve charge which you like to be applied.

Payment Options, Terms & Conditions, Templates

Payment Options

Fields Description
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.

Payment Options

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 by clicking on the Gear icon and navigating to More Settings > Templates and selecting templates under Invoice Templates.

Template in invoice

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.

Record Payment Button

Fill in the required details and click on Record Payment to record a payment manually.

Record Manual Payment

Adding Services as Items in your Invoice

Service 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, Bills & Projects in your Invoices

An invoice can be created by adding the unbilled expenses and projects associated with the customer.

Unbilled expenses & projects in invoices

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.

Unbilled expenses in invoices

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.

Unbilled expenses in invoices

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.

Unbilled projects in invoices

Select the project you wish to add under the items field in your invoice.

Unbilled projects in invoices

After the unbilled expenses & projects are added, the item field looks this way,

Unbilled expenses & projects in invoices

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.

Creating Invoice from Project

Creating Invoice from Project

Fileds Description
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.

Send Invoices to Customers

To send the invoices to your customers by email, select the Email option from the Send drop down.You can also choose to send the invoice by courier by selecting the Snail Mail option.


Sending invoices to customers

Sending invoices to customers

Sending invoices to customers

Snail Mail

Snail Mail

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.

Note: Snail mail has a default template which cannot be changed.

When you use Snail Mail, your organization name, email address, username and address will be shared with a postal service.

Sample Snail Mail Invoice

Snail Mail Sample envelop

Snail Mail Sample invoice

Snail Mail Sample invoice

Scheduled Invoices

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:

Schedule button

Note: By default, all scheduled invoices will be sent out at 08:00 AM.

Schedule pop-up

Schedule edit

Save and send later

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:

Attaching a File in Invoice

Attaching a File in Invoice

Attaching a File in Invoice

Payments Received

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.

Payments received

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,

Other options

Other options

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.

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.

Writing Off and Voiding an Invoice

Write Off

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,

Writing Off


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.

Other Actions


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

Filter Description
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 list your invoices, based on your criteria.

For example, out of all your invoices in Zoho Books, you might want to view 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.

Custom view of invoices

To create a Custom View:

Your new custom field will now be listed under Created By Me, in the dropdown.

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