Enter self-billing invoices in Xero

In Xero a customer can create and record a self-billing invoice, and a supplier can enter a self-billing invoice so that it is recorded as income.

When do I use self-billing invoices?

Rather than issuing an invoice in the normal way, a supplier will receive a self-billing invoice, 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 self-billing invoice 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 haulier delivers items, and the recipient evaluates the condition of the items. The recipient sends a VAT invoice (and maybe, the payment) to the haulier.

Enter a self-billing invoice in Xero – for suppliers

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

Enter the details from the self-billing invoice 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 self-billing invoice in Xero – for customers

  1. Create the invoice in another program, like Microsoft Excel using the following template.

    You can't generate compliant self-billing invoices in Xero.

    Microsoft Excel icon. Open Microsoft Excel template (16KB)

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

  3. Make sure the self-billing invoice meets the HMRC guidelines.

  4. Send the self-billing invoice to your supplier.

  5. Add the self-billing invoice into Xero as you would enter a bill. You can also import multiple self-billing invoices into Xero.

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