Introduction
Issuing invoices is essential for managing business transactions. Xero allows you to create professional invoices, track payments, and manage customer accounts efficiently. You can generate invoices in multiple currencies, set up recurring invoices, and monitor outstanding payments.
Before You Start
Make sure you have permission to create invoices. Set up your customer information in Xero to make the process faster. Decide whether invoices will be in your base currency or a foreign currency.
Creating a Sales Invoice
Step 1: From the dashboard, go to Sales, choose Invoices.
Step 2: Click New Invoice.
Step 3: Fill in the invoice details, including customer, date, due date, products/services, quantity, price, and tax.
Adding multiple lines: Click Add Row to include additional items if needed.
Attaching documents: Click Add File to attach any related files (e.g., contracts, receipts).
Currency: Select the currency for this invoice. Xero will calculate totals based on the chosen currency and exchange rate if applicable.
Step 4: Review the total calculated by Xero.
Step 5: To finalize, you have two options:
Save & Close
Approve & Email
Step 6: If the invoice was not emailed using Approve & Email, click the three dots at the top right and select Email to send it directly to the customer’s email.
Tips
Check customer and currency details before sending invoices.Set reminders for overdue invoices.Ensure your brand theme (logo, colors, template) is applied for a professional appearance.Always double-check the tax rates for each line item, especially for international invoices, to ensure compliance and accurate totals.Reconcile payments regularly.
Understanding Tax Inclusive vs. Tax Exclusive in Xero
In Xero, tax inclusive means the price you enter already includes tax. For example, a RM 110 item at 10% tax has a RM 100 base and RM 10 tax. Tax exclusive means tax is added on top of the price, so a RM 100 item with 10% tax totals RM 110. Selecting the correct option ensures your invoices are accurate and compliant.
Frequently Asked Questions (FAQs) about How to Issue Sales Invoice in Xero
Q: Can I edit an invoice after sending it?
A: Yes, if it is not fully paid. Large changes may require voiding the invoice.
Q: Does Xero calculate taxes automatically?
A: Yes, based on your organization’s tax settings.
Q: How can I track unpaid invoices?
A: Use the Aged Receivables report under Reporting → All Reports.
Conclusion
Xero simplifies invoicing by supporting multiple currencies, recurring invoices, and payment tracking. Custom templates and automation help reduce errors and save time, keeping your business finances organized and efficient.