Customer sales invoice

Find this screen

Open: Sales Ledger > Enter Transactions > Sales Invoice

How to

Enter an invoice

Open: Sales Ledger > Enter Transactions > Sales Invoice

  1. Select the Customer account.

  2. Enter the Invoice details.

    • Enter the Invoice date.

    • The Due date is calculated automatically depending on the Payment Terms set on the customer's account. You can change this here if required.

    • Enter a Reference and Second reference.

  3. Enter the Goods value.

  4. The Discount invoice total shows the invoice total including the settlement discount (if applicable).

    To view or change the discount, select Show Discount Details.

    • The Discount value is calculated using the settlement discount values Discount days and Discount percent, which come from the customer's account. You can change these if required.

  5. The VAT Analysis section shows the default VAT rate from the customer's account.

    • If your invoice uses more than one VAT rate, add a line for each VAT rate in the VAT Analysis section.

      Make sure the Totals in the VAT Analysis section match the Goods value and VAT value for the invoice in the Transaction Details section.

  6. The Nominal Analysis shows the default nominal code from the customer's account.

    • If you want to post the invoice to more than one nominal account, you can add a line for each nominal account in the Nominal Analysis section.

      Make sure the Totals in the Nominal analysis section match the Goods value for the invoice in the Transaction Details section.

      Note: Both positive and negative values can be entered in the Goods value for nominal analysis.

      Note: If you select a memorandum nominal account, its goods value will not counted towards the total value of the transaction.

    • If you use transaction analysis codes, you can select a Transaction Analysis code for the transaction. You may have customised the Transaction Analysis name for your business.

    • You can change the Narrative to make it more meaningful for your business.

  7. To finish entering the invoice, select Save.

    If you want to enter another invoice for the same customer, select Save and Retain Code.

Enter a foreign currency invoice

When you select a foreign currency customer account, there are some differences when you enter the invoice:

  1. Enter the Goods value in the same currency as specified on the invoice.

    This should be the same as the currency on the customer's account.

  2. If you need to amend the Exchange rate, select Change Rate.

    The default exchange rate is set in Currencies and Exchange Rates in the Sage 200 desktop.

    This can be the Single or Period rate. If the customer uses a Single Exchange Rate, the exchange rate set when entering the invoice is used to calculate the base currency amount. If the supplier uses a Period Exchange Rate, the relevant period exchange rate is used.

    Note: You can only change the exchange rate here if the exchange rate is set to be Amendable.To check or change this, use Currencies and Exchange Rates in the Sage 200 desktop.

  3. If the customer account is in a different EU country, and the invoice is a triangulated transaction, select Triangulated.

    This makes sure that the transaction is marked with the correct indicator on the EC Sales List.

    For more information, see Triangulation.

Enter a settlement discount

A settlement discount is where you offer a discount if your customer pays an invoice early. You usually specify the number of days the invoice has to be paid within to qualify for the discount.

  • In the UK, if the invoice is paid within the settlement discount period, VAT is only charged on the discounted amount (Goods value minus Discount value).
  • In Ireland, VAT is calculated at the goods value regardless of any settlement discount.

If the invoice is paid within the agreed number of days, then you allow the full discount value when you enter the payment.

If the invoice hasn't been paid, the VAT should be calculated at the full goods value before the discount. When you record the invoice, Sage 200 will calculate the VAT at the full rate, by default. For invoices with settlement discounts, you can also enter the following additional values: Discount percent, Discount value, VAT discount.

Depending on the values entered, the Invoice total and Discount invoice total (discounted invoice total) are calculated. The discounted invoice total is the amount that you expect to be paid within the discount period.

You can change the values as required. Don't forget that the totals in the VAT Analysis section must match the values in the Transaction Details.

  • Select Show Discount Details.
  • Enter the Goods value, Discount percent, Discount days, Discount value and VAT discount.
  • The VAT value is calculated from the full Goods value before discount. You can override this if required.
  • The Discount invoice total shows the amount the customer is due to pay within the settlement discount period.

If the invoice has been paid straight away, the settlement discount will have been taken. The VAT on the invoice sent to the customer will already be discounted.

When you record this invoice, select the Settled immediately option, so that Sage 200 will calculate the VAT on the discounted invoice amount. In this case there is no need to process an adjustment to account for the VAT discount.

  1. Select Show Discount Details.
  2. Select Settled immediately.
  3. Enter the Goods value, Discount percent, Discount days, and Discount value.
  • The VAT value is calculated from the Goods value minus the Discount value.

Useful info

Triangulation

Triangulation is the term used to describe the supply of goods between EU countries that involves three parties.

For example, a UK company receives an order from a customer in Germany. To fulfil the order, the UK company purchases the goods from their supplier based in France. The goods are delivered directly from the French supplier to the German customer. The invoice for the goods is sent to the German customer from the UK company.

As the goods do not enter the UK, an indicator must be placed on the EC Sales List to show that the sale represents a triangulated transaction.

To mark sales transactions as triangulated on the EC Sales List, select the Triangulated option when you enter these types of transaction:

  • Sales Ledger (Customer): Invoice, Credit Note.

Early settlement discounts

A settlement discount is where you offer a discount if your customer pays an invoice early. You usually specify the number of days the invoice has to be paid within to qualify for the discount.

  • In the UK, if the invoice is paid within the settlement discount period, VAT is only charged on the discounted amount (Goods value minus Discount value).
  • In Ireland, VAT is calculated at the goods value regardless of any settlement discount.

If the invoice is paid within the agreed number of days, then you allow the full discount value when you enter the payment.

  1. Enter the invoice. Include the settlement discount details on the invoice. The full invoice value is posted to the customer's account.

  2. Enter the receipt. If your customer qualifies for the discount when they pay the invoice, they'll pay you the invoice total minus the discount amount. You enter this as the receipt value and you also enter the amount of the discount.

    • The discount is added to the amount received to make sure that payment matches the invoice. This is posted to the customer's account and the Debtors Control account.
    • The amount received is posted to the bank account and the discount amount is posted to the Discounts Taken nominal account.
    • For example, for an invoice of £119 with a £5 settlement discount, enter the payment amount as £114 and discount amount as £5.

You offer a settlement discount of 5%:

  1. You record the details of an invoice for £100. VAT is calculated at £20. You enter the discount percentage and amount which is £5.
  2. You receive payment for the invoice within the specified period and the customer has taken the discount, so they pay you £114. This is the gross amount (£120) minus the net discount (£5) and the discounted VAT (5% x 20 = £1).
  3. You record the receipt and enter the value as £114 and add the discount value as £5. This creates a transaction value of £119.
  4. You allocate the invoice (£120) to the receipt (£119). The VAT discount of £1 is still outstanding
  5. You create a credit note for the VAT discount of £1.
  6. You allocate this to the remaining balance on the invoice.
Transaction Nominal Account Debit Credit
Invoice Debtors Control 120  
  Net   100
  VAT   20
Receipt Discounts Allowed 5  
  Bank Account 114  
  Debtors Control   119
Credit Note Debtors Control   1
  VAT 1  

To make sure that the settlement discount details are always entered when transactions are entered for a customer, you can add the settlement discount details to the customer's account (Payment tab). The Discount percent, Discount Days are then automatically applied each time you enter a transaction for this customer.

You can change the discount details when entering an individual transaction if you need to. This does not update the customer's account. If you change the Discount Value, the Discount Percent is updated and vice versa.

When an invoice that contains settlement discount is paid within the settlement discount period, the VAT is only charged on the discounted invoice amount. VAT must be calculated and shown on the invoice at the full rate. If the customer pays within the settlement discount period, the VAT is discounted and a VAT adjustment must be processed.

The HMRC requires businesses to:

  1. Notify their customers of the VAT discount available and the amounts the customer is due to pay. This can be done in one of two ways:
    1. Issue an invoice detailing the full net and VAT payable. If the invoice is paid within the discount period, issue a further VAT only credit note to account for the VAT discount.
    2. Issue an invoice document which states the amount of discount (net and VAT) that can be claimed if the invoice is paid early, as well as the full amount (net and VAT) due after the settlement discount period. If the invoice is paid within the discount period, there is no need to issue an additional credit note. However, internal VAT adjustments will be required.
  2. When an invoice is paid immediately, the settlement discount is automatically taken. The VAT is discounted on the invoice and no subsequent VAT adjustment is necessary.

Note: In Ireland, VAT is always charged at the full value of the invoice, regardless of any settlement discounts.

When you record the details of an invoice in Sage 200 that has been produced elsewhere, the details you record must match the details printed on the invoice and sent to the customer.

Fix it

You'll see a warning on the Invoice total if the customer has exceeded their credit limit, but you can still save the invoice.

You'll see warning if you have set Transaction date validation in System Settings in the Sage 200 desktop.

  • If the date entered is in the Unacceptable range, the transaction cannot be saved.

  • If the date is in the Acceptable range, the transaction can still be saved.

This could be because:

  • The exchange rate is not set to be Amendable. To check or change this, use Currencies and Exchange Rates in the Sage 200 desktop.

What happens when I

Save an invoice

If you have set the nominal ledger to update immediately in System Settings, the nominal account and customer account are updated immediately. If the transaction is dated in a future period, it is posted when the period is opened.

If you have not set the nominal ledger to update immediately, transactions in open or closed periods are posted to the current postings file, and transactions for future periods are posted to the deferred postings file.

  • The customer's account balance is increased by the gross value of the invoice (including VAT if appropriate).
  • The account's turnover for this period (or for the next if a future period's date is entered) is increased by the net amount (goods value) of the invoice.
  • The VAT file is updated with the goods and VAT value for each VAT Rate used. The entry is made for the current ledger period unless the posting is for a future period when the appropriate month is used. This ensures that the transactions entered late after the month has been closed are included in the next VAT Return.

  • The transaction is posted to the following nominal accounts:

    Nominal Account Debit Credit
    Sales Account   Net goods value
    VAT Output   VAT value
    Debtors Control Account Gross value  

Sage is providing this article for organisations to use for general guidance. Sage works hard to ensure the information is correct at the time of publication and strives to keep all supplied information up-to-date and accurate, but makes no representations or warranties of any kind—express or implied—about the ongoing accuracy, reliability, suitability, or completeness of the information provided.

The information contained within this article is not intended to be a substitute for professional advice. Sage assumes no responsibility for any action taken on the basis of the article. Any reliance you place on the information contained within the article is at your own risk. In using the article, you agree that Sage is not liable for any loss or damage whatsoever, including without limitation, any direct, indirect, consequential or incidental loss or damage, arising out of, or in connection with, the use of this information.

See also

Other tasks

Customer sales credit notes

Customer sales receipt

Customer sales payment (refund)