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
Create the invoice in another program, like Microsoft Excel using the following template.You can't generate compliant self-billing invoices in Xero.
Save the invoice as a PDF to lock the information.
Make sure the self-billing invoice meets the HMRC guidelines.
Send the self-billing invoice to your supplier.
- Add the self-billing invoice into Xero as you would enter a bill. You can also import multiple self-billing invoices into Xero.