> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bizaxl.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Sales Invoice

> How to create and manage sales invoices for credit sales, institutional orders, and formal billing in Bizaxl Medical Retail.

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.

<Frame>
  <img src="https://mintlify.s3.us-west-1.amazonaws.com/bizaxloptimizationsllp/images/placeholder-sales-invoice-form.png" alt="Sales Invoice form showing customer, items, tax breakdown, and outstanding amount" />
</Frame>

***

## Who Uses This Feature

| Role               | What They Do Here                                              |
| ------------------ | -------------------------------------------------------------- |
| **Accounts Staff** | Creates and manages sales invoices for institutional customers |
| **Counter Staff**  | May raise invoices for direct sales (if not using POS)         |
| **Store Manager**  | Reviews outstanding receivables and outstanding invoices       |

***

## 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

***

## How to Create a Sales Invoice

### 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

### 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

### 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

***

## Field Guide

### Header

| Field            | What to Enter                                                                                                    | Required?                                  |
| ---------------- | ---------------------------------------------------------------------------------------------------------------- | ------------------------------------------ |
| **Customer**     | Name of the individual or institution                                                                            | Yes                                        |
| **Company**      | Your company                                                                                                     | Yes                                        |
| **Posting Date** | Invoice date - today by default                                                                                  | Yes                                        |
| **Due Date**     | When payment is expected (for credit sales)                                                                      | No (but required for receivables tracking) |
| **Is POS**       | Tick only for POS-generated invoices (usually system-managed)                                                    | No                                         |
| **Is Return**    | Tick only for credit notes (returns)                                                                             | No                                         |
| **Update Stock** | Tick if you want stock to be decremented directly from this invoice (for direct invoicing without Delivery Note) | No                                         |

### Items Table

| Field          | What to Enter                              | Required?              |
| -------------- | ------------------------------------------ | ---------------------- |
| **Item Code**  | Medicine or product                        | Yes                    |
| **Qty**        | Quantity sold                              | Yes                    |
| **Rate**       | Selling price per unit                     | Yes                    |
| **Batch No**   | Select batch (for batch-tracked medicines) | Yes (if batch-tracked) |
| **Discount %** | Any discount on this line                  | No                     |
| **Amount**     | Auto-calculated                            | Auto                   |

### Taxes

| Field                  | What to Enter                                                |
| ---------------------- | ------------------------------------------------------------ |
| **Taxes and Charges**  | GST template - auto-filled from item. Verify the rate        |
| **IGST / CGST / SGST** | Auto-split based on whether sale is interstate or intrastate |

### 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.

***

## Workflow Journey

<Steps>
  <Step title="Sales order confirmed">
    The customer places their order and a Sales Order is raised in the system.
  </Step>

  <Step title="Delivery note created">
    Goods are dispatched and a Delivery Note is created, reducing stock immediately.
  </Step>

  <Step title="Sales invoice created (draft)">
    The accounts team creates a Sales Invoice from the Delivery Note, with all items pre-filled.
  </Step>

  <Step title="Submit">
    The invoice becomes the official bill and appears in Accounts Receivable as outstanding.
  </Step>

  <Step title="Customer pays: payment entry raised">
    When the customer pays, a Payment Entry is created and linked to the invoice.
  </Step>

  <Step title="Invoice settled">
    Once the full amount is received, the invoice status changes to Paid.
  </Step>
</Steps>

***

## Status Meanings

| Status                 | What It Means                                        |
| ---------------------- | ---------------------------------------------------- |
| **Draft**              | Created but not submitted                            |
| **Submitted / Unpaid** | Bill raised, awaiting payment                        |
| **Partly Paid**        | Partial payment received                             |
| **Paid**               | Fully settled                                        |
| **Overdue**            | Past due date and not paid                           |
| **Return Issued**      | A credit note has been raised                        |
| **Cancelled**          | Invoice cancelled (requires amendment if re-raising) |

***

## 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.

***

## 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)

***

## 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

***

## 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.

***

## 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.

***

## Related Features

* [Sales Order](/retail/medical-retail/sales-order) - the order that precedes the invoice
* [Delivery Note](/retail/medical-retail/delivery-note) - dispatching goods before invoicing
* [Payment Entry](/retail/medical-retail/payment-entry) - collecting payment against an invoice
* [Customer Management](/retail/medical-retail/customer-management) - customer GSTIN and credit limits
* [GST Compliance](/retail/medical-retail/gst-compliance) - GSTR-1 filing from sales invoices
* [Point of Sale](/retail/medical-retail/point-of-sale) - for walk-in customer billing at the counter