Creating invoices in Tally is quick and easy. To create invoices go to Sales > New Invoice.
Preparing your Invoice
To create an invoice go to Sales > New Invoice. The next screen lets you prepare your invoice.
- Invoice Number – By default the next available highest invoice number is entered here. You can change this number by typing in the box. Please note that the invoice number can only be numeric.
- Invoice to – Use the drop down here to select the customer that you would like to invoice. If the customer isn’t already in Tally click the add a new one link and enter in the customer details.
- Purchase Order/Customer Reference – If the customer has sent you a purchase order for their order with you, you can record the number here. This can help you track down the invoice quicker if the customer later queries the invoice with you.
- Invoice Date – This is the invoice issue date. By default this is todays date but can be changed by clicking in the box or clicking the calendar icon.
- Invoice is Due on – This is the date that the invoice needs to be paid from. The date here is based on your default payment terms, although can be changed by typing in the box or clicking the calendar icon.
When you’re ready, click the Add Invoice button.
You will then be taken to the invoice details screen. This contains several sections:
- Customer information – This is where information on the customer, invoice billing and delivery address is displayed. To edit, just click in the box. When you’ve updated it click Save.
- Invoice Information – this is where information on this invoice is displayed. To edit this click in the box.
- Invoice number – use this text box to change the current invoice number. This can only be numbers and must be an available invoice number.
- Invoice Date – This is the invoice issue date. Clicking in the box or clicking the calendar icon can change this.
- Due Date – This is the date that the invoice needs to be paid from. Typing in the box or clicking the calendar icon can change this.
To save this click the Save button.
Adding Line Items
Use the items on this invoice area to add line items to the invoice. To add a new line to this invoice, click the Add item to this invoice button.
- Sales Type – Use this drop down to select the Sales Type of this line item. Sales type can be thought of category of sale. Your selection here will affect your profit and loss and other financial reports. You can also use this section for use with products and stock.
- Qty – This is the quantity of this line item that you are selling. You can rename or disable this field by going to Settings > Invoice Options > Display Options.
- Description – This is the line item description and will appear on your invoice.
- Rate – This is the price of the item excluding VAT.
- If you’ve got VAT enabled you’ll also get 2 VAT options:
- VAT Rate – This is the VAT rate (%) that should be added to this item.
- VAT Amount – This is the amount of VAT in your currency that is being added. The VAT amount is calculated based on your quantity, multiplied by your net rate, multiplied by your VAT rate. This amount is automatically calculated but can be changed by clicking in the box and editing the number.
- Total – This is the total amount for this line. This is calculated based on your rate, multiplied by the quantity, plus the VAT amount.
If you would like to add more items to this invoice tick the box for add more items to invoice. When you’re ready, click the Add Item button.