Record customer invoices

How to enter an invoice

Open: Sales Ledger > Enter Transactions > Invoice.

  1. Select the customer account you want to add an invoice to.

  2. Enter the Invoice details.

    • Enter the Invoice date.

    • The Due date is calculated automatically depending on the Payment Terms entered on the customer's account. You can change this here if required.
    • To check that the Reference and date combinations are unique, click the tick button.

  3. Enter the Goods value.

    The discount values are calculated automatically. You can change these if required.

  4. Enter Nominal & VAT Analysis.

    When you select a customer account, the default nominal code and default VAT code from the customer's account are entered. You can override these if required.

    • Accept or amend the VAT analysis for each item on the sales invoice.

      If you are working with goods items which have different VAT rates applied to them, ensure the VAT value in the VAT analysis matches the VAT value for the transaction.

    • Accept or amend the Nominal account specified.

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

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

  5. Enter the Project Analysis.

    If you want to assign the invoice to a project enter the project details on the Project Analysis tab.

    Note: The Project Analysis tab is only available if you are using the Project Accounting module.

  6. Click Save.

How to enter an foreign currency invoice

  1. Select the customer account you want to add an invoice to.

  2. Enter or amend the exchange rate. Click to change exchange rate.

    You always enter the goods value in the currency specified on the customer's account.

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

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

  4. Enter the remaining invoice details as above.
  5. Click Save.

The rate is set in the Currencies and Exchange Rates option in Accounting System Manager is used by default. This can be the Single or Period rate depending on the customer.

You can only change the exchange rate if the exchange rate is set to be amendable on the Currencies and Exchange rates (ASM > Settings > Currencies and Exchange Rates).

How to enter a free text invoice

Open: Enter Transactions > Free Text Invoice.

  1. Select the customer account you want to add an invoice to.

  2. Enter the Invoice header details:

    • Their reference
    • Invoice date

    • Settlement

    • Exchange rate

  3. Enter the line details:

    • Description
    • Quantity
    • Unit Price
    • VAT Code
    • Line Total

  4. Enter the nominal account.

    The nominal account specified on the customer account is displayed by default.

    Note: If the nominal account is not a valid account, a warning message will appear. If you continue with the posting without changing the nominal account, the invoice will be posted to the suspense account.

  5. Click Save. This prints the invoice.

The invoice prints straight away.

  • Preview - the invoice is previewed and must be printed straight away. There is no reprint option.

    Note: You can't use the Send to Excel option for free text invoices.

  • Spooler - the invoice is sent to the spooler and is printed from there. This way you can reprint it if required.

Note: If the account uses foreign currency then the bank selected must use the same currency.

  1. Select Payment received.

  2. Enter the receipt information:

    • Cheque Number

    • Amount to pay - the cheque values can't be more than the invoice value.

    • Bank account - for foreign currency invoices, then the bank selected must use the same currency.

When you save the invoice, the payment is allocated to the invoice.

Note: When you allocate a payment/receipt, the allocation date will default to either today's date or your payment/receipt date. This depends on what you have chosen as the Default allocation date in Sales Ledger Settings.

You can use free text invoices to print a one-off invoice, if you're not using Invoicing or Sales orders.

If you want to keep a history of your invoices, we recommend that you use Invoicing. You can create invoices with free text lines if you're not using stock.

The invoice numbers are set in the Invoicing settings, and are shared with Invoicing and Sales Orders.

How to enter settlement discounts

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.

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 %, Net Discount, VAT Discount.

Depending on the values entered, the Invoice total and Discounted invoice total are calculated. The Disc Inv Total is the amount that you expect to be paid within the discount period.

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

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 in Sage 200, select the Settled immediately check box. This tells Sage 200 to 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.

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 Disc Inv Total shows the amount the customer is due to pay within the settlement discount period.

  1. Select Settled immediately.
  2. Enter the Goods value, Discount percent, Discount days, and Discount value.

The VAT value is calculated from the Goods value less the Discount value.

Note: The VAT shown on the Project Analysis tab is not discounted.

Questions

Yes. You'll see a warning but you can still save the invoice.

This depends on the Transaction date validation settings entered in Accounting System Manager.

If the Invoice Date entered is in the Unacceptable range, it has a red highlight and the invoice cannot be saved.

If the Invoice date is in the Acceptable range, it has a yellow warning highlight and can be saved.

If you are entering invoices or free text invoices (and not posting a cash receipt at the same time as the free text invoice):

  • 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 sales account(s) (profit and loss) in the Nominal Ledger are credited with the goods value according to the analysis.
  • The VAT output account(s) (for the balance sheet) in the Nominal Ledger is credited with the value of the VAT if included.
  • The debtors control account (for the balance sheet) in the Nominal Ledger is debited with the gross 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.

If you are entering a free text invoice and posting a cash receipt at the same time:

  • The customer's account balance is decreased by the receipt value. The receipt is allocated in part or full to the invoice, depending on the amount involved. If the receipt amount is more or less than the full invoice amount, the invoice is fully or part allocated, and the balance of the receipt is fully or part allocated on the account. You can use Allocate Receipts to allocate any overpayment to other transactions, if appropriate.
  • The default bank account (balance sheet) in the Nominal Ledger is debited with the receipt amount.
  • The bank account in the Cash Book is debited with the receipt amount if appropriate.
  • If settlement discount was specified then this will have been taken and the amount of the net discount is posted to the default discount allowed account (profit and loss) in the Nominal Ledger.
  • The debtors control account (for the balance sheet) in the Nominal Ledger is credited with the receipt amount.

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

Record customer credit notes

Receipts

Enter customer sales payments (refunds)

Allocate customer receipts

Batch transaction processing (Sales Ledger)

Reference

Set up operational settings

Post invoices

Settlement discounts

Produce your EC Sales List (ESL) or VIES return

Set up currencies

Foreign currency transactions

Current Transactions