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How to Add Invoice

Overview​

Creating an invoice generates a tax invoice document for goods sold or services rendered to customers. Invoices can be created from existing sales orders or as standalone documents, and include automatic GST calculation, payment terms tracking, and dispatch management.

Prerequisites​

  • User must have Sales module access with invoice creation permissions
  • Customer master data must exist with valid GSTIN and billing address
  • Items must be configured with HSN/SAC codes and tax rates
  • Payment terms should be configured in system settings or customer master
  • Sales order should exist if creating invoice from order (optional)

Step-by-Step Guide​

Step 1: Navigate to Invoicing​

From the left sidebar, expand Sales and click Invoicing.

On the Invoice list page, click + Add Invoice button in the top section.

The Add Invoice form opens with auto-generated Invoice ID and current date pre-filled.

Step 2: Select Customer​

Customer Name Field* (Required)

Click the customer name dropdown or search box to find and select the customer.

Search Tips:

  • Type customer name to filter results
  • System shows matching customer names as you type
  • Select the appropriate customer from the dropdown

Auto-Populated Information:

Once customer is selected, the system automatically fills:

Billing Address:

  • Customer's registered billing address
  • Complete with street, city, state, PIN code
  • GST Number with registration type (Regular/Composition)
  • Cannot be edited in invoice form

Shipping Address:

  • Delivery location for the goods
  • Defaults to billing address
  • Can select alternate shipping address if configured
  • Shows complete address with contact details

Step 3: Fill Invoice Header Details​

Invoice# Field* (Auto-generated)

  • Shows a preview of the next sequential number (e.g., INV-0007380)
  • The final number is assigned at the moment you save — so numbering stays gapless even if a form is opened and abandoned, or several people are creating invoices at once
  • Follows numbering series configured in System Settings
  • Can be edited before saving if needed
  • Click pencil icon to modify
  • Once saved, cannot be changed

Invoice Date* (Required)

  • Date when invoice is issued to customer
  • Defaults to current date
  • Can be changed using date picker
  • Format: DD/MM/YYYY (e.g., 10/12/2025)
  • Must fall within current financial year
  • Determines tax period for GST compliance

Payment Terms* (Required)

  • Credit period given to customer for payment
  • Dropdown shows configured payment terms
  • Common options: Net 30, Net 60, Net 90, Advance, Cash on Delivery
  • Auto-populates if set in customer master
  • System calculates due date automatically based on selected term

Due Date* (Auto-calculated)

  • Payment deadline for the invoice
  • Calculated as: Invoice Date + Payment Terms
  • Example: Invoice Date 10/12/2025 + Net 30 = Due Date 11/11/2025
  • Can be manually adjusted if needed
  • Used for payment tracking and aging reports

SO# Field (Optional)

  • Sales Order number if invoice linked to existing order
  • Click dropdown to see open/partial fulfilled sales orders
  • Only shows orders for selected customer
  • Select to auto-populate items from sales order
  • Leave blank for standalone invoice

Department Field (Optional)

  • Assign invoice to specific department
  • Used for departmental revenue tracking
  • Select from configured departments
  • Useful for multi-department businesses

Reference Field (Optional)

  • Customer's purchase order number or reference
  • Free text field
  • Example: "PO-12345" or "Project-ABC"
  • Helps customer identify and process invoice

Step 4: Add Line Items​

Click on the Items tab (default active tab).

Item Line Entry:

Item Details* (Required)

  • Click "Select an item" dropdown
  • Search or select item from master
  • System shows item code and description
  • Item's HSN/SAC code and tax rate auto-populate

Qty* (Required)

  • Quantity being invoiced
  • Numeric field
  • Must be greater than zero
  • If linked to SO, cannot exceed ordered quantity

Unit Price* (Required)

  • Selling price per unit
  • Auto-populated from item master or sales order
  • Can be edited if needed
  • Displayed in selected currency

Discount(%) (Optional)

  • Item-level discount percentage
  • Applied before tax calculation
  • Enter numeric value (e.g., 10 for 10%)
  • Discount amount calculated automatically

Tax Rate* (Required)

  • GST rate applicable on the item
  • Dropdown shows: 0%, 5%, 12%, 18%, 28%
  • Auto-selected based on item's HSN code
  • System calculates CGST+SGST (intrastate) or IGST (interstate)

Tax Amount (Auto-calculated)

  • GST amount computed on taxable value
  • Taxable Value = (Qty × Unit Price) - Discount
  • Shows CGST/SGST split or IGST amount
  • Read-only field

Amount (Auto-calculated)

  • Line item total including tax
  • Formula: (Qty × Unit Price) - Discount + Tax Amount
  • Read-only field
  • Displayed in base currency

Action Column:

  • Trash icon: Delete line item
  • Removes item from invoice

Adding Multiple Items:

  • Click (+) icon below items section
  • Adds new blank line
  • Repeat item entry process
  • Add as many items as needed

Step 5: Configure Discount (Optional)​

Above the items grid, the Discount section allows invoice-level discount:

Discount Dropdown:

  • Discount at item level (default): Discounts applied per item
  • Discount at invoice level: Single discount on entire invoice before tax

Invoice-Level Discount:

  • If selected, enter discount percentage
  • Applied on total of all line items
  • Tax calculated after discount

Step 6: Review Totals​

The right side panel shows automatic calculations:

Sub Total: Sum of all line items (Qty × Unit Price - Item Discount)

Discount: Total discount amount across all items

Taxable Amount: Amount on which GST is calculated

IGST (Interstate) or CGST + SGST (Intrastate):

  • Automatically determined by comparing:
    • Your GSTIN state code
    • Customer GSTIN state code
  • Same state = CGST + SGST (e.g., 9% + 9% = 18%)
  • Different state = IGST (e.g., 18%)

Total Amount: Final invoice value (Taxable Amount + Total GST)

Amount in Words: Total written in words for invoice printing

Step 7: Attach Documents (Optional)​

Click the Documents tab next to Items tab.

Document Type Dropdown:

  • Click "Select document type" dropdown
  • Choose from:
    • Customer PO: Customer's purchase order
    • E-way Bill: Transportation document for goods > ₹50,000
    • POD (Proof of Delivery): Signed delivery receipt
    • Others: Any supporting documents

Upload Process:

  1. Select document type from dropdown
  2. System shows "No documents available" if none uploaded
  3. Click upload area or drag-and-drop file
  4. Supported formats: PDF, images (JPG, PNG), Excel
  5. Multiple files can be attached with different types
  6. Files stored in Vault under Invoices folder

Step 8: Configure Material Dispatch​

Below the Documents section, configure dispatch details:

Material Dispatched Checkbox:

  • Check this if goods are being dispatched with this invoice
  • Unchecked: Invoice-only, no dispatch (e.g., for advance billing)
  • Checked: Material dispatch tracking enabled

When Checked, Additional Options Appear:

Dispatch Details Link:

  • Click "Dropship" link to configure dispatch
  • Opens Dispatch Details modal dialog

Dispatch Details Modal Fields:

Dispatch Date (Optional)

  • Date when goods dispatched
  • Format: MM/DD/YYYY
  • Defaults to invoice date

Status Dropdown (Optional)

  • Dispatched: Goods sent to customer
  • Pending: Not yet dispatched
  • Select current status

Quantity Radio Buttons:

  • Full Quantity (Recommended): Dispatch complete order
  • Partial Quantity: Dispatch partial quantity (triggers partial dispatch flow)

Transport Mode Dropdown (Optional)

  • Road
  • Air
  • Sea
  • Rail
  • Select transportation method used

Logistics Provider (Optional)

  • Search and select transporter name
  • Type to filter logistics partners
  • Creates logistics provider if doesn't exist

Tracking Number (Optional)

  • Courier tracking ID or consignment number
  • For customer tracking

Vehicle Number (Optional)

  • Truck/vehicle registration number
  • Required for e-way bill generation

Handled By (Optional)

  • Email ID of person managing dispatch
  • Used for coordination and notifications

Expected Delivery Date (Optional)

  • Estimated date of delivery to customer
  • Format: MM/DD/YYYY
  • Used for customer communication

Total Items (Auto-calculated)

  • Number of line items being dispatched
  • Read-only field

Total Weight (Optional)

  • Total shipment weight
  • Enter value and select unit (kg, grams, tons)

Notes (Optional)

  • Special delivery instructions
  • Handling requirements
  • Free text area

Click Save to apply dispatch details.

Step 9: Add Terms & Conditions​

Below Material Dispatched section:

Terms & Conditions Field:

  • Large text area for invoice terms
  • Pre-populated with default terms from Settings
  • Common clauses:
    • Payment terms and late payment charges
    • GST and tax applicability statements
    • Return and refund policies
    • Warranty and liability disclaimers
  • Editable per invoice if needed
  • Appears on printed invoice PDF

Step 10: Select Inventory Location​

Inventory Location Dropdown:

  • Select warehouse or location for inventory deduction
  • Dropdown shows configured warehouses/stores
  • Example: "M/S HINDUSTAN AERONAUTICS LTD" or main warehouse
  • Stock reduced from selected location on invoice save
  • Required if Material Dispatched is checked
  • Leave blank for non-inventory invoices (services)

Step 11: Review and Save​

Before saving, verify:

  • Customer details and GSTIN are correct
  • All line items with quantities and prices accurate
  • Tax calculations match expected GST treatment
  • Discount applied correctly
  • Payment terms and due date appropriate
  • Dispatch details complete (if applicable)
  • Documents attached

Action Buttons (Bottom):

Cancel: Discard invoice and return to list view

Save: Save invoice as draft (can be edited later)

Add: Finalize and create invoice (status changes to Open)

Click Add to create the invoice.

Verification​

After creating invoice, verify:

  • Invoice appears in invoice list view with status "Open"
  • Invoice number generated as per numbering series
  • Customer receivable account updated in accounts
  • Revenue recognized in appropriate accounting period
  • GST liability recorded (output tax)
  • Inventory reduced from selected location (if dispatched)
  • Linked sales order status updated (if applicable)
  • PDF invoice can be downloaded and sent to customer

Usage Scenarios​

Scenario 1: Invoice from Sales Order​

When to Use: Customer order confirmed, goods ready to ship

Process:

  1. Select customer
  2. Choose SO# from dropdown
  3. System auto-populates items, quantities, prices from order
  4. Verify details
  5. Configure dispatch details
  6. Save invoice

System Actions:

  • Links invoice to sales order
  • Updates SO fulfillment status
  • Reduces ordered quantity by invoiced quantity
  • Tracks billing percentage on sales order

Scenario 2: Standalone Invoice (No SO)​

When to Use: Direct sales, walk-in customers, ad-hoc billing

Process:

  1. Select customer
  2. Leave SO# blank
  3. Manually add each line item
  4. Enter quantities and prices
  5. Apply taxes
  6. Configure payment terms
  7. Save invoice

System Actions:

  • Creates independent invoice
  • No sales order linkage
  • Direct revenue booking
  • Stock deduction from selected location

Scenario 3: Advance Invoice (No Dispatch)​

When to Use: Request advance payment before dispatch

Process:

  1. Create invoice normally
  2. DO NOT check "Material Dispatched"
  3. Select payment terms: Advance
  4. Save invoice

System Actions:

  • Invoice issued but no inventory impact
  • Customer liability created
  • Payment expected before dispatch
  • Material dispatch done separately later

Scenario 4: Partial Billing from Sales Order​

When to Use: Large order, billing in phases

Process:

  1. Select customer and SO#
  2. System loads full order quantities
  3. Modify quantities to invoice partial amount
  4. Configure dispatch for partial quantity
  5. Select "Partial Quantity" in dispatch modal
  6. Save invoice

System Actions:

  • SO status: Partial Fulfilled
  • Remaining quantity: Available for next invoice
  • Track progress on sales order view
  • Multiple invoices allowed against single SO

Tips & Best Practices​

Pro Tips

  • Always double-check customer GSTIN before invoicing - wrong GSTIN invalidates ITC claim
  • Configure payment terms at customer level to avoid entering every time
  • Use Reference field to capture customer PO number for their payment processing
  • Attach customer PO in Documents tab - helps resolve payment disputes
  • For interstate sales > ₹50,000, generate e-way bill before dispatch
  • Mark dispatch status accurately - affects inventory and delivery tracking
  • Use digital signature feature for compliance with e-invoicing requirements
  • Save as draft first, review thoroughly, then finalize - invoices cannot be edited after payment received

Common Issues & Solutions​

Issue: Customer not appearing in dropdown

  • Solution: Verify customer exists in Customers master, status is Active, and has valid billing address and GSTIN

Issue: Wrong tax (IGST vs CGST+SGST) applied

  • Solution: Check customer GSTIN state code matches their actual location. Edit customer master if state incorrect

Issue: Cannot select sales order

  • Solution: Ensure SO status is Open or Partial Fulfilled, belongs to selected customer, and not fully invoiced

Issue: Inventory not reducing after invoice

  • Solution: Verify "Material Dispatched" checked, inventory location selected, and items are inventory type (not services)

Issue: Discount not calculating correctly

  • Solution: Check if discount set at item level vs invoice level. Change discount dropdown setting and re-enter percentages

Issue: Due date calculating incorrectly

  • Solution: Verify invoice date is correct, payment terms selected properly. Manually adjust due date if needed

Need help? Contact support at support@bizconnekt.com