What is a sales invoice in Receipt Capture?
Most documents your client receives are costs, so XBert publishes them as a bill or an expense, but some are actually income for your client, even though someone else wrote them, and those are published as a sales invoice:
RCTIs (recipient-created tax invoices): the buyer writes the invoice for your client. For example, a grain buyer's statement or a processor statement.
Account sales: an agent sells on your client's behalf, for example at a saleyard, or wool or produce agents. The statement shows the gross sale, less commission, freight and levies, which equals the amount paid out.
Publishing one of these as a Sales invoice creates a sales invoice in your client's Xero file against the buyer or agent as a customer. A sales invoice records the money coming in, rather than a bill your client owes.
š” Sales invoices are for Xero clients only
For clients on QuickBooks Online, MYOB or FreeAgent, the option is greyed out, and hovering over it shows Sales invoices are available for Xero clients only.
š” For documents someone else wrote
Use Sales invoice for RCTIs and account sales your client receives from a buyer or agent. Invoices your client sends to their own customers are created in Xero as usual.
How XBert records it in Xero
XBert creates one sales invoice per document, with the original document attached:
The sale goes to an income account with GST on Income.
Deductions such as commission, freight, yard dues and levies go on the same invoice as negative lines against expense accounts. Deductions with GST use GST on Expenses. GST-free levies use BAS Excluded.
The total equals the net amount actually paid to your client, so it matches the deposit in the bank feed.
The contact is whoever issued the document: the buyer on an RCTI, or the agent on an account sale. If they're not in Xero yet, XBert adds them as a new contact.
š” XBert doesn't send the invoice
The sales invoice is created in Xero only. Nothing is emailed to the buyer or agent.
Before you start
The client must use Xero and have Receipt Capture switched on.
š Read more here: How To: Turn On Receipt Capture for Your Clients
Check whether sales invoices will go to Xero as Draft or Approved. See the section below.
Choose Draft or Approved
You choose which state a sales invoice arrives in Xero:
Draft: the invoice waits in Xero's Drafts, so someone can review and approve it in Xero.
Approved: the invoice goes straight to Awaiting Payment in Xero, with no second review in Xero.
Every client starts on Draft. This setting is separate from Publish Bills As, so you can approve bills straight away and still review sales invoices in Drafts.
š Read more here: How To: Choose Whether Bills and Sales Invoices Go to Xero as Draft or Approved
Set the default for a client
You need admin access to change a client's default.
In the left-hand menu, click Settings.
Under Receipt Capture, click Settings.
Find the client using the search at the top.
In the Publish Sales Invoices As column, click Draft or Approved.
Hover over it and you'll see Approved sales invoices go straight to Awaiting Payment in Xero - they will not wait in Drafts for another review.
Change it for a single document
In the left-hand menu, click Receipt Capture.
Click the document to open the preview panel.
Next to To Xero as Draft, click Change to Approved.
You'll be asked Publish as approved? Click Publish as approved to confirm.
To switch back, click Change to Draft.
ā ļø Approved sales invoices need a due date
Xero won't accept an approved invoice without a due date. If it's missing, publishing stops at Validate sales invoice data with Due date is required when publishing as Approved.
Add the due date, click Apply & Save, then click Retry Step. Drafts can be published without a due date.
Add a sales document
Add it yourself
Click Quick Add (the + icon at the top of the screen), then Add Receipt.
Choose the client.
Under Publish as, click Sales invoice.
You'll see Records income - published as a sales invoice against a customer, not as a bill against a supplier. Use this for an RCTI.
Add the files, then click Queue.
The document appears on the Receipt Capture page, marked Sales Invoice under its file name.
Sales invoices can't be sent from the XBert Capture app, because its payment methods only create bills and expenses, so add a sales invoice yourself or switch an emailed bill.
Switch a bill to a sales invoice
Emailed documents always come in as bills, so if an RCTI or account sale arrives by email, or was added as a bill by mistake, switch it to a sales invoice before it's published:
In the left-hand menu, click Receipt Capture.
Click the document to open the preview panel.
Next to Publishing as Bill, click Change to Sales Invoice.
You'll be asked Change to sales invoice? Click Change to sales invoice to confirm.
XBert reprocesses the document as a sales invoice, picking up the customer, income accounts and deduction lines again.
To switch it from a sales invoice back to a bill, click Change to Bill.
ā ļø Switching discards any edits
If someone has already edited the document, the confirmation says Edits, comments and history on its current work item will be discarded. Check the details again after it reprocesses.
You can switch a bill to a sales invoice for Xero clients only, and not while the document is still processing, after it's been published, or while it has supporting documents attached. Expenses can't be switched to a bill or sales invoice.
ā ļø A bill with supporting documents can't be switched to a sales invoice
If an RCTI or account sale arrives in an email with other files attached to it, switching the bill to a sales invoice shows This document has supporting documents attached to it, so its destination can't be changed. Process the supporting documents separately first. Open each supporting document and click Promote to its own transaction, or Process separately if it's still Awaiting grouping, then switch the bill to a sales invoice.
š Read more here: How To: Work With Emails That Have More Than One Attachment
Check and publish
Open the document's Receipt Capture work item.
From your work views, such as the Task List, or from the Receipt Capture page by opening the document and clicking Open.
Check the details:
To: the buyer or agent who issued the document.
Lines: the sale on an income account, and each deduction as a negative line. Check every account and tax rate, because XBert doesn't use memories for sales invoices.
Tracking: XBert may leave tracking blank on a sales invoice, so set it if your client uses it.
Total: the net amount paid to your client.
Correct anything that's wrong, then click Apply & Save.
Click Publish at the top of the work item.
XBert works through the publishing steps one at a time: Validate sales invoice data, Check for duplicate sales invoices, Validate tax registration, Create or update contact, Create sales invoice and Update notification status.
Wait until you see All steps completed successfully!
Sales invoices are always published this way, by someone on your team, because Publish with XBert rules can't publish them.
š Read more here: How To: Publish a Receipt
If XBert finds a possible duplicate
Before creating the sales invoice, XBert checks your client's Xero file for one that's already there. It looks for:
an invoice for the same customer, date and amount
an invoice with the same reference and customer, and the same date or amount
a Receive Money transaction from the same customer for the same amount, dated within a week
If it finds one, publishing stops at Check for duplicate sales invoices with Action Required, and you'll see Resuming will publish this document to the accounting system anyway.
Check the client's Xero file for the matching invoice or transaction.
If it's genuinely a separate sales invoice, click Resume.
If it's a duplicate, delete the document in XBert.
ā ļø Check Xero for corrected or re-issued documents
Buyers and agents sometimes send a corrected RCTI or account sale with the same number but a different amount. If the original was published recently, XBert may not warn you. Before you publish, check Xero for an invoice with the same Reference.
If the total is below zero
If the deductions are more than the sale, the total is negative and your client owes the agent. A sales invoice can't be negative in Xero, so XBert holds it and shows:
Held for review: this sales invoice's total is below zero. A sales invoice can't be negative in Xero, and credit notes aren't supported yet. Check the amounts, or record this as a credit note in Xero yourself.
Check the amounts first. If the total really is negative, record it as a credit note in Xero yourself, because Receipt Capture doesn't create credit notes. Then delete the document in XBert.
The Sales Invoice Agent
Sales invoices have their own Sales Invoice Agent, alongside the Bill Agent and Bank Transaction Agent. You can customise its work items the same way, but Publish with XBert rules can only be set up on the Bill Agent and Bank Transaction Agent, so someone on your team always publishes a sales invoice by clicking Publish.
š Read more here: How To: Customise and Configure Receipt Capture Work Items
š Read more here: How To: Publish Receipts Automatically with an XBert Rule
ā ļø Memories don't work for sales invoices
Memories are saved against suppliers and describe how to code what your client buys, but on a sales invoice the other party is a customer paying your client, so XBert doesn't use memories for sales invoices and codes each one fresh. You can still click Add Memory on a sales invoice, but the memory won't be used for sales invoices, only if a bill or expense comes in from that same contact.
š Read more here: How To: Use Memories with Receipt Capture
Need help?
If you have any questions, our support team is here to help!
Reach out via the chat widget on the bottom left of your XBert screen (Help), or email us at support@xbert.io