A sales invoice is used to record income from customers who have been given extended payment terms. This means the customer does not pay at the time the product is sold or services are rendered; instead, they pay you sometime in the future. The most common payment term is net 30, which means the invoice is due 30 days from the sales date or the invoice date.
Unlike the sales receipt and deposit form, which records both the sale and the receipt of payment in a single transaction, recording a sales invoice and payment is done in two steps. In this section, we will cover the first step—recording a sales invoice. We will cover recording customer payments in the next section.
To record a sales invoice in QuickBooks Online, follow these steps:
- Navigate to the + New menu and select Invoice under CUSTOMERS, as indicated here:
- The following screenshot shows a snapshot of the sales invoice form, along with an example of what information...