Create an Invoice

Last updated: 2026-06-02 Summary:

• Walk through creating, posting, and sending an AR invoice.
• Every invoice line requires a product/service from the catalog.
• Posting auto-generates the revenue + receivable journal entry.

Prerequisites

• A customer exists (AR → Customers).
• At least one product/service exists in the catalog with an income GL account mapped. The catalog is a hard dependency of AR — every invoice line requires a catalog item.

Steps

1. Go to Accounts Receivable → Invoices → Create Invoice.
2. Select the customer and invoice/due dates (PH locale renders DD/MM/YYYY).
3. Add lines — pick a product/service; quantity × price drives the amount. Per-line discounts are supported.
4. Apply SC/PWD discount categories if the buyer qualifies (Senior Citizen / PWD / 5%).
5. Review the VAT breakdown (Vatable / 12% VAT / Total) — driven by the tenant’s VAT registration status.
6. Save as draft, then Post to generate the journal entry, then Send.

What posting does

Posting creates a balanced journal entry: debit Accounts Receivable, credit Revenue from the product’s income account, and credit Output VAT when VAT-registered. Document numbering respects the document type (INV-, DM-, etc.).

Discounts & memos

SC/PWD discounts render on the PDF and flow to the Sales Journal. Corrections use Credit/Debit Memos, which post reversing entries and render the discount block.

See also

• Tax handling
• Reconcile a bank account

Related

• BIR forms & templates