Enter recipient-created invoices in Xero

In Xero a customer can create and record a recipient-created invoice (RCTI), and a supplier can enter a RCTI so that it is recorded as income.

When do I use RCTIs?

Rather than issuing an invoice in the normal way, a supplier will receive a RCTI, along with payment, from their customer.

  • As a supplier you won't have to create a purchase order or a receipt. Instead, your customer will create a RCTI after they have determined the value of their purchase.
  • As a customer you won't have to wait for an invoice to arrive, you can pay for your purchase when you issue a self-billing invoice.

For example, a sugar mill buys sugarcane from you and they analyse it to find its value. The sugar mill then sends you an RCTI (and maybe, the payment) for the sugarcane.

Enter a RCTI in Xero – for suppliers

Once the purchase has been delivered you will receive a RCTI from your customer. You can add this invoice in Xero so that it's recorded as income.

Enter the details from the RCTI into Xero as you would enter a normal invoice.

The invoice can be reconciled against the bank statement line when it's imported. This will be recorded as income within Xero.

Create a RCTI in Xero – for customers

  1. Create the invoice in another program, like Microsoft Word or Excel using one of the following templates.

    You can't generate compliant RCTIs in Xero.

    Microsoft Word icon.  Open Microsoft Word template (31KB)

    Microsoft Excel icon.  Open Microsoft Excel template (22KB)

  2. Save the invoice as a PDF to lock the information.

  3. Make sure the RCTI meets the ATO guidelines.

  4. Send the RCTI to your supplier.

  5. Add the RCTI into Xero as you would enter a bill. You can also import multiple RCTIs into Xero.

Learn more