How to Create Sales invoices in Xero

2 years, 6 months ago by Oliver Atkinson

How to Create Sales invoices in Xero

When you log in to Xero you will be taken to the dashboard. From here click on ‘Business’ at the top of the screen and a drop down of options will appear. The options that relate to the sales ledger are ‘Invoices’, ‘Quotes’ and ‘Sales Overview’.

Click on ‘Invoices’ and this will show all your invoices. You can create a new invoice or, if you have already created a similar invoice, you can copy and amend another invoice to save time. To copy and amend a similar invoice, i.e. for the same customer, find and select an invoice and click ‘Invoice Options’, ‘Copy to…’ select the customer and ‘Copy’.

However, if you are creating a new invoice we will also need to create a new customer. Go to ‘Contacts’ on the top bar, click ‘Customers’ and then ‘New Contact’. From here you can fill out your customer’s details such as email, address and telephone number. You can also set default settings for the financial details such as if their invoices should be VAT inclusive or exclusive (depending on whether you are registered for VAT), their VAT number, tax rate and credit limit. These details can also be manually changed on the invoice later.

Go back to the invoices screen and click ‘New Invoice’.

Under ‘To’ type in, and select, the customer.

The Date, also known as tax pointpoint, will be the date the invoice is issued.

An invoice number will automatically be generated and you can put any reference if it will help you or the customer. Next to ‘Amounts are’, select whether the prices you are charging include or exclude VAT. You will only need to charge VAT if you are VAT registered. Do not worry about this if you are not VAT registered as it will not make a difference.

Then you need to fill in the invoice details:

• In Description enter the product or service supplied
• In Quantity enter the amount supplied. You can break it down by the amount of items supplied or hours.
• For Unit Price enter the amount charged, this will be times by the Qty.
• For Account select the account you want it to go to. Most likely this will be sales or a subcategory of sales if you have made any.
• For Tax Rate select the percentage of VAT charged. If you have different rates of VAT you will need to do separate rows for each tax rate. If you are not registered for VAT select No VAT.

Once this is done and you are happy with the invoice click Approve.

Xero also have a guide on how to create a new invoice.