Enter buyer-created invoices in Xero
In Xero a customer can create and record a buyer-created invoice (BCI), and a supplier can enter a BCI so that it is recorded as income.
When do I use BCIs?
Rather than issuing an invoice in the normal way, a supplier will receive a BCI, 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 BCI 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 meatworks buys cattle from you and they analyse it to determine its value. The meatworks sends you a BCI (and maybe, the payment) for the cattle.
Enter a BCI in Xero – for suppliers
Once the purchase has been delivered you will receive a BCI from your customer. You can add this invoice in Xero so that it's recorded as income.
Enter the details from the BCI 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 BCI in Xero – for customers
Create the invoice in another program, like Microsoft Word or Excel using one of the following templates.You can't generate compliant BCIs in Xero.
Open Microsoft Word template (31KB)
Save the invoice as a PDF to lock the information.
Make sure the BCI meets the Inland Revenue guidelines.
Send the BCI to your supplier.
- Add the BCI into Xero as you would enter a bill. You can also import multiple BCIs into Xero.