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How to make sales invoice in ERPNext
Here is a step-by-step tutorial for creating sales invoice in ERPNext with an emphasis on how to offer discounts (by item or total) and how to pull advance payments to reduce the outstanding amount.
Step 1: Create a Sales Invoice (optional to create from a Sales Order)
- Go to Accounts module > Sales Invoice. Click Make New button to make sales invoice directly else follow below to make from an existing sales order.
- Go to the Search Bar or navigate through Selling > Sales Order.
- Open the Sales Order and check its details.
- Click the Create button in the top-right corner.
- Select Sales Invoice from the dropdown to create the invoice from this sales order.
Step 2: Apply Discounts on Individual Items
- Scroll down to the Items table in the Sales Invoice.
- For each item in the table, there is a Discount % column
- Enter the discount percentage you want to offer on each item individually.
- This will automatically reduce the item's price in the Amount column.
- Example: If an item has a price of $100 and you offer a 10% discount, the price in the Amount column will be updated to $90.
Step 3: Apply Discount on the Total Invoice
- Scroll down to the Additional Discount section.
- In the Apply Additional Discount On either select Net Total or Grand Total.
- In the Additional Discount Percentage field, enter the discount percentage for the total invoice.
- Or give discount by amount by entering the discount value in the Additional Discount Amount field.
- Example: If the net total is $1000 and you add a 5% discount here, $50 will be deducted from the final invoice amount.
Step 4: Pull Advance Payments to Reduce Invoice Amount
- Scroll down to the Payments section.
- Click on Get Advances Received (this button will only appear if there are existing advances related to the customer or sales order).
- The system will display a list of advance payments made by the customer.
- Select the relevant advance payment(s) and click Save button o top right. You can save by using Ctrl+S keys on keyboard.
- The advance payment amount will be applied to the sales invoice, reducing the total outstanding amount.
- Example: If the invoice total is $950 and the customer has paid an advance of $200, the outstanding amount will be reduced to $750.
Step 5: Set Taxes and Charges
- Below the items section, there is an area for Taxes and Charges.
- Choose a pre-configured tax template from the drop-down list, or create a custom tax rule.
- If your sales order had specific tax terms, they will be pulled automatically into the invoice.
Step 6: Verify Terms and Conditions (Optional)
- Scroll down to the Terms and Conditions section to review or edit any predefined terms.
- If your sales order had specific terms, they will be pulled automatically into the invoice.
Step 7: Save and Submit the Sales Invoice
- Once all details are correct, click Save.
- To finalize the invoice, click Submit.
Step 8: Print or Email the Invoice
- After submitting, you can print the invoice using the Print button or email it directly to the customer using the Email button.
Now you have created a sales invoice with item-specific or total discounts, and you have applied the advance payment to reduce the outstanding balance. This ensures accurate accounting and invoicing for both the customer and your organization.
