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A Sales Invoice is the official bill you raise for goods sold to a customer. For a medical retail business, Sales Invoices are used for:
  • Institutional sales to hospitals, clinics, or organisations (credit sales)
  • Direct counter sales where a formal invoice (not a POS receipt) is required
  • When goods are first delivered (via Delivery Note) and the invoice follows later
Sales Invoices flow directly into your financial accounts and GST filings.
Sales Invoice form showing customer, items, tax breakdown, and outstanding amount

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Who Uses This Feature

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Before You Start

  • The Customer must be in the customer list
  • Items must be in the Items Catalogue with correct HSN codes and tax templates
  • For institutional sales: a Sales Order and Delivery Note should already be created

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How to Create a Sales Invoice

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Method 1: From a Delivery Note (Institutional Sales)

  1. Open the Delivery Note (status = “To Bill”)
  2. Click Create → Sales Invoice
  3. All items, quantities, and rates are copied automatically
  4. Confirm the Posting Date and Due Date
  5. Review taxes
  6. Submit

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Method 2: From a Sales Order (Billing Without Delivery)

  1. Open the Sales Order and click Create → Sales Invoice
  2. This creates a direct invoice without a separate Delivery Note
  3. Useful when physical delivery is handled separately or for services

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Method 3: From Scratch (Walk-in / Counter)

  1. Go to Accounting workspace → Sales Invoice → New
  2. Select the Customer
  3. Add items - select batch for batch-tracked medicines
  4. Enter payment details in the Payments section if collecting now
  5. Submit

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Field Guide

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Items Table

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Taxes

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Payments (For Immediate Cash Collection)

If you are collecting payment now (not a credit sale):
  • Add the Mode of Payment (Cash, Card, UPI)
  • Enter the Amount Paid
  • The invoice will show as “Paid” immediately
For credit sales (institutional buyers), leave the payments section empty and the invoice will show as “Unpaid” - to be settled later via Payment Entry.

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Workflow Journey

1

Sales order confirmed

The customer places their order and a Sales Order is raised in the system.
2

Delivery note created

Goods are dispatched and a Delivery Note is created, reducing stock immediately.
3

Sales invoice created (draft)

The accounts team creates a Sales Invoice from the Delivery Note, with all items pre-filled.
4

Submit

The invoice becomes the official bill and appears in Accounts Receivable as outstanding.
5

Customer pays: payment entry raised

When the customer pays, a Payment Entry is created and linked to the invoice.
6

Invoice settled

Once the full amount is received, the invoice status changes to Paid.

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Status Meanings

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Raising a Credit Note (Customer Return)

If a customer returns goods:
  1. Open the original Sales Invoice
  2. Click Create → Return (Credit Note)
  3. Select the items and quantities being returned
  4. Select the batch (if batch-tracked)
  5. Submit
The credit note reduces the outstanding balance on the original invoice. If the customer has already paid, the credit note can be applied against a future purchase or refunded.

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GST on Sales Invoices

Bizaxl automatically applies the correct GST based on:
  • The tax template assigned to the item
  • Whether the sale is intrastate (same state → CGST + SGST) or interstate (different state → IGST) based on the customer’s address and your company address
The Sales Invoice data flows directly into your GSTR-1 return. Ensure:
  • Customer’s GSTIN is entered on their record (for B2B sales above threshold)
  • HSN codes are on all items
  • The correct invoice date is set (affects which month’s GSTR-1 it appears in)

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Monitoring Outstanding Receivables

  • Accounting workspace → Accounts Receivable report - lists all unpaid invoices with customer, amount, and overdue days
  • Filter by “Overdue” to see who is past due
  • Use the Due Date Analysis report for a day-by-day view of incoming expected payments

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Best Practices

  • Set the due date on every invoice. Without it, the Accounts Receivable report cannot show overdue invoices correctly.
  • Always link to a Delivery Note for institutional sales. This ensures stock was actually dispatched before the invoice was raised.
  • Confirm the customer’s GSTIN for B2B institutional invoices. An incorrect or missing GSTIN prevents the customer from claiming input tax credit and may prompt disputes.
  • Do not back-date invoices. The posting date determines which GST period the invoice falls into. Backdating creates reconciliation problems.
  • Review the tax breakdown before submitting. GST on medicine products varies - some are 0%, some 5%, some 12%. Ensure the right rate is applied.

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Common Mistakes

  • Raising an invoice without a Delivery Note for institutional sales. This means you are billing before the goods are dispatched - creates financial records that do not reflect actual operations.
  • Forgetting to tick “Update Stock” for direct invoicing. If there is no separate Delivery Note, the Sales Invoice must update stock. Without this, stock remains unchanged after the sale.
  • Not selecting a batch for batch-tracked items. Batch selection on Sales Invoices is mandatory for medicines - without it, your batch quantity reports become inaccurate.
  • Not setting a due date for credit sales. Outstanding invoices without due dates do not trigger overdue alerts.