- Tax Invoice Purpose
A Tax Invoice is the primary and legally recognized billing document used by a business to formally request payment from a customer for products or services provided.
It serves as:
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A financial record
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A legal tax document
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A payment request
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A reference document for accounting and audits
Tax Invoices are used in day-to-day billing, tax reporting, customer payments, and financial reconciliation.
- When to Use a Tax Invoice
A Tax Invoice should be created when:
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A sale has been confirmed
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Services have been delivered or are due
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Goods are supplied or about to be supplied
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You need to legally request payment
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Tax reporting is required
- How to Use – Step-by-Step (User Flow)
1️⃣ Open Invoice Module
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Navigate to Documents → Invoices
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Click Add Invoice
2️⃣ Select or Create Customer
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Choose an existing customer
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Or create a new customer directly
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Customer details used:
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Name
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Email
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Phone
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Address
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Tax ID (if applicable)
3️⃣ Add Products or Services
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Add one or multiple line items
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Each item includes:
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Product / Service name
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Quantity
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Unit price
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Discount (percentage or fixed)
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Tax inclusion or exclusion
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Optional notes
4️⃣ Set Financial Details
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Choose company / invoice settings
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Select currency
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Apply:
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Tax rate
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Discount
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Rounding rules
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System automatically calculates:
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Subtotal
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Tax amount
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Discount amount
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Final payable amount
5️⃣ Review & Save Invoice
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Invoice number is generated automatically
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Document status set to Unpaid
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Invoice data saved securely in system
6️⃣ PDF Generation
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Professional PDF is generated automatically
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Includes:
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Company branding
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Customer details
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Item table
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Tax breakdown
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Total amount
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PDF stored and linked to invoice
7️⃣ Send Invoice to Customer
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Send via:
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Email
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WhatsApp (if enabled)
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Customer receives:
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Invoice PDF
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Payment instructions
- Payment Flow – Detailed Explanation
Initial Status
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Invoice is created as Unpaid
Supported Payment Methods
Customers can pay using:
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Cash
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Credit Card (via payment gateway)
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Bank Transfer
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Check
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Online Payment Gateways
Payment Processing
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Payment is recorded manually or automatically
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Each payment creates:
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A payment record
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A linked receipt document
Partial Payments
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Invoice can receive multiple payments
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Each partial payment:
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Generates a partial receipt
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Updates invoice status to Partly Paid
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Remaining balance is tracked automatically
Full Payment
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When total paid equals invoice amount:
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Invoice status becomes Paid
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Final receipt generated (if configured)
- API Support – Deep Integration
The Tax Invoice is fully supported via external and internal APIs.
API Capabilities
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Create invoice automatically
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Add items programmatically
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Apply tax and discounts via API
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Generate PDF automatically
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Retrieve invoice list
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Fetch invoice PDF URL
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Create receipts automatically
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Update payment status
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Link invoices with projects or orders
⚙️ Settings That Affect Tax Invoices
Tax Invoice behavior depends on:
Invoice Settings
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Company details
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Logo
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Document numbering format
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Default tax rate
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Default currency
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Language
Tax Settings
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Include or exclude tax
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Item-level tax control
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Rounding rules
Payment Settings
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Enabled payment methods
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Payment gateways
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Auto-receipt creation
Template Settings
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Invoice layout
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Colors and fonts
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Visible fields
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Footer and terms
- Related Documents
A Tax Invoice can be linked with:
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Receipts
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Partial Receipts
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These relationships ensure complete financial traceability.
✅ Benefits of Using Tax Invoices
✔ Legally compliant billing
✔ Accurate tax reporting
✔ Full payment tracking
✔ Supports installments and partial payments
✔ Automated PDF generation
✔ Email and WhatsApp delivery
✔ API automation support
✔ Audit-ready documentation
Summary
The Tax Invoice is the core financial document in the Documents Module.
It connects customers, payments, taxes, receipts, APIs, and reporting into a single controlled workflow.
By using Tax Invoices, businesses gain:
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Financial accuracy
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Legal compliance
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Operational efficiency
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Automation-ready billing
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Credit Invoices
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Orders
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Projects
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