Accounts Receivable

ACCOUNTS RECEIVABLE (SALES)

  • You can access purchases in Xero from Accounts> Sales.
  • Xero gives you an easy to use function for creating a Invoice and sending it to the designated Customer.
  • You can even create sales invoice for a group of customers as explained in this section
  • Xero also has capability of creating a credit note against the sales in case you need to reduce your sales.

Creating Sales Invoice

  • You can easily create a sales invoice by Going to Accounts>Sales> New> Invoice.
  • You can also create a repeating invoice for repeating invoice for certain time periods.
  • By invoicing to group contacts, it creates invoice for all the contacts in a Group.
  • Crete a new invoice: For creating an invoice, you need to input following information into Xero:
    • Name of Customer
    • Date of Invoice
    • Due date of payment
    • Invoice Number
    • Reference
    • Item Sold
    • Description which you wish to mention in invoice
    • Qty
    • Price
    • Discount
    • Account where effect needs to be given
    • Tax rate
    • Amount in NZD
    • Stating whether the Amount is Tax Inclusive or Tax Exclusive
  • Here is how the input screen looks like.
  • Invoice needs to be approved once all the parameters are entered on the screen.
  • One the invoice is entered and saved it becomes a part of draft invoices which can be approved at a subsequent point of time.
  • Once it is approved it gives the effect into financials.
  • You can also add a note to the sales invoice for your reference.
  • You can also upload other source document along with invoice entry which can help you relate the entry with source document.
  • Source document can be uploaded from your computer or from the documents previously uploaded in the file library of Xero.
  • Sending the invoice: You can send the invoice by email to the customer directly from Xero by pressing on email button.
  • You can also print the PDF of the document for your reference.
  • Invoice Options:

From Invoice options, you can do following tasks:

  • Repeat the Invoice: You can set the invoice to repeat at regular intervals of time.
  • Void: You can mark the invoice as void.
  • Copy the invoice: The invoice can be copied to make a copy of it.
  • Edit the invoice: You can change the parameters entered into the invoice.
  • Add credit note: You can reduce the amount of invoice by entering the credit note.
  • Repeating the invoice: You can repeat the amount of invoice at regular point of time by this function. This is useful in case the invoices.

Receiving payment in Xero :

  • You can receive payment in Xero by entering the receipts in Xero.
  • You can subsequently match the receipts with the bank receipts in Xero.

History and Notes :

  • Xero shows history and notes in each of the entry. It shows the user which has changed the entry and who created the same.
  • You can also add a note and expected date of payment for the same./li>

Editing a customer address in Sales invoice :

  • You can edit the customer from the invoice.
  • The same would be updated in Master data once it is uploaded into the document.

Tips :

  1. You can enter due date by just mentioning +2 in case you want due date to be 2 days after the date of invoice. In case you want due date to be same as date of invoice then you can just mention +0 in due date entry.
  2. It is optional to enter Item in entering the Invoice. You may choose not to maintain inventory record in the Inventory.
  3. You can set a user and approver role for the Invoice where the person doing data entry will only be allowed to enter the invoice and the standard user can approve the bill and give an accounting effect.
  4. Once the invoice is created and approved, it cannot be DELETED it can just be VOIDED.

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