The tax invoice: booking the sale
You will be able to: Make a cash sale and a credit sale on the sales invoice; Write the ledger entries of a sales invoice with 5% VAT; Explain Update Stock and why an invoice from a delivery note posts no cost.
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The sales invoice is the document that books a sale. Submitting it takes the stock out (unless a delivery note already did), records the sale and its VAT, and adds whatever the customer has not paid to what they owe you. It is the tax invoice your customer receives. Under UAE VAT rules a tax invoice should be issued within 14 days of the supply.
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1. Open Sales, then Sales Invoice 2. Press + New Sales Invoice 3. Pick the customer 4. Add the first item by code 5. Add a second item 6. Check Qty, Rate and the 5% VAT in the totals 7. Leave Payment empty: the sale goes on credit 8. Press Submit and Print: the invoice gets its number
Making an invoice
- Open Sales, then Sales Invoice and press + New Sales Invoice.
- Press F3 and pick the customer. A credit sale needs one; a sale paid in full can go without.
- Press F4, type an item code, name or barcode and click the item. A scanner types the barcode and presses Enter.
- Check Qty, Rate and the tax code (SR5 is the 5% standard rate). The Payment Term field sets the due date.
- Record payment under Payment Details, or leave it empty to sell on credit.
- Press Submit. The invoice gets its number and, with the usual setting, the printout opens.
For a cash or card sale, press a Full payment button such as Cash: one payment row appears with the full total. Check that Paid matches the total. A card, bank or cheque row may need a REF. For a part payment, enter only what the customer pays now; the rest stays owed.
What Submit posts
If the customer pays in full at the till, the first debit goes to the account of the payment mode (for example Cash) instead of Trade Receivables, and the customer's balance does not change.
Update Stock and delivery notes
- Update Stock is ticked by default: posting takes the quantities out and books the cost of sales. Untick it for a bill-only invoice where the goods left, or will leave, on another document.
- An invoice made from a delivery note does not issue the units twice. The cost was already posted at delivery, so the invoice posts only the sale, the VAT and the customer balance.
The sales cycle at a glance
| Step | Document | Stock | Ledger (10 bags, AED 50, cost AED 30) |
|---|---|---|---|
| Offer | Quotation | None | None |
| Order | Sales Order | None | None |
| Deliver | Delivery Note | 10 out | Dr COGS 300, Cr Inventory 300 |
| Bill | Sales Invoice (from the delivery note) | None again | Dr Receivable 525, Cr Sales 500, Cr VAT Output 25 |
| Collect | Receipt | None | Dr Bank 525, Cr Receivable 525 |
| Take back | Sales Return of 2 bags | 2 in (if restocked) | Dr Sales Returns 100, Dr VAT Output 5, Cr Receivable 105; Dr Inventory 60, Cr COGS 60 |
Checks and corrections
- Credit limit, overdue invoices, a line priced below cost, a repeated LPO number and Posting Controls can question or stop a Submit. A warning asks you to confirm; a block explains why.
- Amend reverses the whole posting and posts the corrected invoice under the same number plus /A1. Cancel reverses everything.
- Amend and Cancel are refused while a receipt applied to the invoice or a return made from it exists, and when the invoice date is in a VAT period you have already filed.
Try it in the demo
- Open https://demo.zeyto.app/demo-app/ and sign in (user admin, password demoAdmin123). This is a public demo with sample data, so nothing you do there affects a real business.
- Open Sales, then Sales Invoice and press + New Sales Invoice. Pick a customer (F3) and add an item (F4). Do not submit.
- Open Payment Details and see the Full payment buttons. Read the Totals box and the bar at the bottom of the screen that describes what Submit will post.
- Go back to the list and open a submitted invoice. Use More, then Postings, to check the Receivable, Sales and VAT Output lines.
Public demo company, sign in as admin / demoAdmin123. Data refreshes nightly.
- A sales invoice records the sale, the VAT and what the customer owes; with Update Stock ticked it also moves stock and books cost.
- 10 x AED 50 plus 5% VAT = AED 525: Dr Receivable 525, Cr Sales 500, Cr VAT Output 25.
- An invoice from a delivery note does not post the cost or move stock again.
Check yourself
5 questions on this lesson. Not timed, not the exam, and you can try again. Score 60% or more, and read the lesson, to complete it.
1. 10 bags are sold at AED 50 plus 5% VAT. What is the invoice total?
2. Which account is credited with the VAT on a sales invoice?
3. A credit sale is AED 500 plus 5% VAT. Which entries does the invoice make for the money and VAT? (Select three.)
Select all that apply.