How to create a tax invoice
- In the Needs Action screen, click on Create tax invoice.
While you're building your tax invoice, you'll notice there are some fields that you are required to complete. These are:
- Other Party
- A description for each coding line
- A quantity for goods supplied on each coding line
IRD has listed information that every tax invoice must show on their website and you can read more about it here.
Step 1. Build your tax invoice
As you work from left to right adding information Focus will calculate each Line amount and the overall amount due.
- Choose a code.
This is for your own use, the recipient won't see this on their invoice.
- Enter a description
Explain what it is you're supplying. This is a mandatory field per IRD's requirements. You can also record a note which will be displayed on the PDF.
- Enter a quantity
This is also a mandatory field where the value needs to be greater than 0 as it will help to calculate each line amount.
- Enter a figure to multiply by (Optional)
This is an optional field that helps Focus to calculate and display a greater level of detail.
Check out the scenario below to see how Multiplier can work in your tax invoices.
- Enter a unit price
The unit price is the price you would enter for a per head, kg, ha, bale etc record. Along with the quantity, it will calculate the line amount for you.
TIP: How you can use the Multiplier
The Multiplier helps to take one less step out of your having to calculate a value in your tax invoice.
In the example above:
- Qty - There are 300 grazing hoggets
- Multiplier - There is an ave. weight gain of 16kg/head
- Unit Price - The grazier charges $2.10/kg live weight gain
By using the multiplier, you can show all three elements of the calculation.
This will also be displayed on the PDF.
Step 2. Generate your tax invoice
When you generate your tax invoice, it becomes read-only and an invoice number is allocated.
- Click Preview & Generate.
- Check over the invoice, and when you're happy with it, click Generate Tax Invoice.
Your tax invoice will sit in Needs Action until you are able to match it to the corresponding transaction.
TIP: If you're not ready to generate the tax invoice, you can save it as a draft and come back to it later.
Learn more about Customising your Tax Invoice for your business