This guide walks you through every step of managing sales invoices, estimates, and credit notes in Awditify — from creating an invoice, to sending estimates for customer approval, to issuing credit notes against invoices.

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What Are They?

• Sales Invoices — A bill you send to a customer for goods or services you provided. Invoices record the sale, track what the customer owes you (accounts receivable), and can be paid online via Stripe or recorded manually.
• Estimates — A quote or proposal you send to a customer before the work is done. The customer can accept, decline, or sign the estimate electronically. Accepted estimates can be converted into invoices with one click.
• Credit Notes — A document that reduces the amount a customer owes. Use credit notes for returns, billing errors, goodwill adjustments, or refunds. Credit notes are applied against specific invoices to reduce their balance.

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Getting to These Pages

1. Open the client you want to work with.
2. In the left sidebar, under Sales & Purchases, you will find:
   • Sales Invoices — your list of customer invoices.
   • Estimates — your list of quotes and proposals.
   • Credit Notes — your list of issued credits.
   • Purchase Bills — your list of supplier bills (covered in a separate guide).
   • Settings — default terms, tax rates, accounts, and late charge configuration.

Click any of these to open its dashboard.

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Sales Invoices

The Invoicing Dashboard

The Invoicing page has two tabs at the top:

• Sales Invoices — money owed to you by customers (accounts receivable).
• Purchase Bills — money you owe to suppliers (accounts payable).

This guide covers the Sales Invoices tab. Click the Sales Invoices tab to see your invoice list.

Summary Stats

At the top, four cards give you an overview:

• Total Invoices — the number of invoices, with a count of how many are paid.
• Total Revenue — the sum of all invoice totals.
• Outstanding — the total balance still owed by customers. Shown in amber when there is money outstanding.
• Overdue — the number of invoices past their due date with a balance still owing. Shown in red when attention is needed.

Filtering

Use the search bar to find invoices by invoice number or customer name. Use the Status dropdown to filter by:

Click Clear filters to reset.

The Invoice List

Each invoice in the list shows:

• A checkbox for bulk actions.
• The invoice number in green monospace text.
• The customer name and customer number.
• The invoice date and due date.
• The total amount.
• The balance due — amber if money is still owed, green if paid.
• A status badge — Draft, Sent, Viewed, Partial, Paid, Overdue, Void, or Cancelled.
• An actions menu (⋮) with more options.

Click any row to open the invoice view.

Bulk Actions

Select invoices using the checkboxes. When one or more invoices are selected, a bulk actions bar appears with these options:

• Send — mark selected invoices as sent.
• Apply Late Charges — calculate and apply interest and penalty charges to overdue invoices based on your late charge settings.
• Void — mark selected invoices as void (they remain in the system for numbering).
• Delete — permanently remove selected invoices.

Click Clear to deselect all.

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Creating a New Sales Invoice

1. On the Invoicing dashboard (Sales Invoices tab), click New Invoice. Alternatively, click the Create New dropdown in the header and select Sales Invoice.

2. The invoice form opens with the following sections:

Customer

Select the customer from the dropdown. Type to search by name or number. The customer's payment terms, email, and billing address are loaded automatically.

✓ Tip: If you sell to a walk-in customer without creating a customer record, leave the customer field empty. The invoice will show as a cash sale.

Invoice Details

• Invoice Number — auto-generated based on your numbering sequence. You can edit it.
• Invoice Date — defaults to today. Change if the invoice is for a different date.
• Due Date — auto-calculated from the customer's payment terms (e.g. Net 30). You can override it.
• PO Number — optional. The customer's purchase order number for reference.
• Reference — optional. Any internal reference text.

Currency (Multi-Currency)

If multi-currency is enabled in Invoicing Settings, you can select a currency for the invoice. An exchange rate is auto-fetched but you can override it. A conversion summary shows the home-currency equivalent below the total.

Line Items

Each line item has:

• Description — what you are billing for.
• Quantity — how many units.
• Unit Price — the price per unit.
• Tax — select the tax rate that applies (e.g. GST/HST, PST). Options come from your Sales Tax settings.
• Amount — auto-calculated as Quantity × Unit Price.
• Account — the revenue account this line posts to (defaults to your default revenue account from Invoicing Settings).

Click Add Line to add more items. Click the trash icon to remove a line.

Below the line items, you see:

• Subtotal — sum of all line amounts before tax.
• Tax — total tax across all lines.
• Total — subtotal plus tax, in bold.

Tracking (Optional)

If tracking categories are enabled, you can assign a Location and a Class to the invoice. These flow through to your financial reports.

Attachments

Click Upload to attach a file (e.g. a signed contract, supporting document, or the original PO). You can attach multiple files.

Recurring (Optional)

If this is a repeating invoice (e.g. monthly retainer), enable the Recurring toggle and choose the interval and next run date. Awditify will automatically generate the next invoice on schedule.

Online Payments (Optional)

Enable Accept Online Payments to let the customer pay via credit card through Stripe. A payment link is generated when you send the invoice.

Notes and Terms

• Notes — internal or customer-facing notes. These appear on the invoice PDF.
• Terms & Conditions — boilerplate legal text. Defaults from Invoicing Settings.

Saving the Invoice

You have three save options:

• Save as Draft — saves the invoice without sending it. It appears as Draft on your dashboard.
• Save & Send — saves and marks the invoice as sent. If online payments are enabled, the customer receives an email with a payment link.
• Save & New — saves the current invoice and opens a blank form for the next one.

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Viewing an Invoice

Click any invoice in the list to open its view page. The view page shows:

Header Actions

At the top, action buttons let you:

• Edit — open the invoice in the form to make changes.
• Send — mark the invoice as sent (or resend if already sent).
• Download PDF — generate and download a PDF copy of the invoice.
• Print — open your browser's print dialog.
• Duplicate — create a copy of this invoice as a new draft. Useful for recurring similar invoices.
• Void — mark the invoice as void. It stays in the system for audit trail but no longer affects balances.

Payment Actions

• Record Payment — manually record a payment received against this invoice. Enter the amount, payment date, and the bank account the money was deposited into.
• Generate Payment Link — create a shareable link the customer can use to pay by credit card (Stripe). You can copy the link and send it yourself.
• Apply Late Charges — calculate and apply interest and penalty charges to this invoice if it is overdue.

Invoice Details

The main area shows:

• Customer Information — name, company, email, phone, and billing address.
• Invoice Header — invoice number, dates, PO number, reference, payment terms.
• Currency — if using a foreign currency, the exchange rate used is displayed.
• Line Items Table — each line with description, quantity, unit price, tax, and line total. Revenue account and tracking class are shown if set.
• Totals — subtotal, tax, total, amount paid, and balance due.
• Notes and Terms — as entered on the form.

Payments Section

Below the invoice, a payments table shows every payment recorded against this invoice:

Linked Credit Notes

If any credit notes have been applied to this invoice, they appear in a Credit Notes section showing the credit note number, date, amount, and remaining balance.

Late Charges

If late charges (interest or penalties) have been applied, each charge is listed with the charge type, base amount, interest/penalty amounts, days overdue, and whether it has been reversed.

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Invoice Statuses

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Estimates

The Estimates Dashboard

Click Estimates in the sidebar to see your list of quotes and proposals.

Summary Stats

At the top, four stat cards show:

• Total Estimates — how many estimates exist, with a count of drafts.
• Pending Response — estimates sent to customers awaiting their reply.
• Accepted — estimates the customer has accepted, with the total accepted value.
• Total Value — the sum of all estimate totals.

Filtering

Use the search bar to find estimates by estimate number or customer name. Use the Status dropdown to filter:

The Estimates List

Each estimate shows:

• The estimate number in purple monospace.
• The customer name and customer number.
• The estimate date and expiry date.
• The total amount.
• A status badge — Draft, Sent, Viewed, Accepted, Declined, Expired, or Converted.
• Signature — if signed, shows the signer's name in green with a pen icon.
• An actions menu (⋮) with more options.

Click any row to open the estimate view.

Row Actions (⋮ Menu)

Each estimate has a context menu:

• View — open the full estimate.
• Edit — (draft only) open the estimate in the form to make changes.
• Send to Customer / Resend — email the estimate to the customer for review.
• Duplicate — create a copy as a new draft.
• Download PDF — download a PDF of the estimate.
• Convert to Invoice — (accepted estimates only) create a new sales invoice from this estimate.
• View Invoice — (converted estimates only) jump to the invoice that was created from this estimate.
• Delete — (draft only) permanently delete the estimate.

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Creating a New Estimate

1. On the Estimates dashboard, click New Estimate.

2. The estimate form opens:

Customer

Select the customer from the dropdown. The customer's email is loaded for sending later.

Estimate Details

• Estimate Number — auto-generated. You can edit it.
• Estimate Date — defaults to today.
• Expiry Date — auto-calculated based on the validity days setting (default 30 days). The customer must accept before this date.

Line Items

Same as invoices. Each line has:

• Description — what you are quoting for.
• Quantity — how many units.
• Unit Price — the price per unit.
• Tax — the tax rate that would apply.
• Amount — auto-calculated.

Click Add Line to add more. Click the trash icon to remove.

Notes and Terms

• Notes — any message to the customer. Appears on the estimate PDF.
• Terms & Conditions — defaults from Invoicing Settings.

Save Options

• Save as Draft — saves without sending.
• Save & Send — saves and opens the send dialog to email it to the customer immediately.

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Viewing an Estimate

Click any estimate to open its view page.

Header Actions

• Edit — (draft only) modify the estimate.
• Send / Resend — email the estimate to the customer.
• Download PDF — download a PDF copy.
• Print — open the print dialog.
• Convert to Invoice — create a new sales invoice from this estimate.
• Void — (non-draft estimates) void the estimate with a reason.
• Duplicate — create a copy as a new draft.

Sending an Estimate

When you click Send, a dialog opens:

1. Confirm or edit the recipient email — defaults to the customer's email on file.
2. Add an optional personal message.
3. Click Send Estimate.

The customer receives an email with a link to view the estimate. They can:

• View the estimate online.
• Accept it, optionally with an electronic signature.
• Decline it.

You will see the status update automatically when the customer responds.

Converting to an Invoice

When a customer accepts an estimate:

1. Click Convert to Invoice.
2. Confirm the conversion in the dialog.
3. You are taken to the new invoice form, pre-filled with the estimate's customer, line items, and amounts.
4. Review, make any adjustments, and save the invoice.

The estimate status changes to Converted and a link to the new invoice appears.

✓ Tip: You can convert an estimate even before the customer accepts it — just use the Convert action from the row menu.

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Estimate Statuses

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Credit Notes

The Credit Notes Dashboard

Click Credit Notes in the sidebar to see your list of issued credits.

Summary Stats

Three stat cards at the top show:

• Total Credits — the sum of all credit note amounts.
• Applied — the total amount that has been applied to invoices, shown in green.
• Remaining — the total amount still available to apply, shown in blue.

Filtering

Use the search bar to find credit notes by number or customer. Use the Status dropdown to filter:

The Credit Notes List

Each credit note shows:

• Number — the credit note number.
• Date — when it was created.
• Customer — which customer it belongs to.
• Linked Invoice — the invoice it is tied to (clickable, opens the invoice view).
• Reason — why the credit was issued (e.g. return, billing error).
• Amount — the total value of the credit.
• Applied — how much has been used against invoices.
• Remaining — how much is still available to apply.
• Status — Draft, Issued, Partially Applied, Fully Applied, or Void.

Row Actions

Depending on the credit note's status, different actions are available:

• Edit (draft only) — open the credit note form to make changes.
• Issue (draft only) — finalize and issue the credit note. This creates the journal entry and updates the customer balance.
• Apply to Invoice (issued or partially applied) — apply the credit against an outstanding invoice to reduce what the customer owes.
• Delete — remove the credit note. If issued, a reversal journal entry is created and any applied amounts are un-applied.

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Creating a New Credit Note

1. On the Credit Notes dashboard, click New Credit Note.

2. A dialog opens with the following fields:

Customer and Invoice

• Customer — select the customer receiving the credit. Required.
• Date — defaults to today. Change if the credit is for a different date.
• Invoice — select the specific invoice this credit is for. Only invoices with an outstanding balance (balance due greater than zero) are shown. The selected invoice's balance due is displayed so you know the maximum credit you can issue.

⚠ Warning: The credit note total cannot exceed the selected invoice's balance due.

Reason

A short description of why you are issuing the credit. Examples: "Return of damaged goods," "Billing error — overcharged hourly rate," "Goodwill adjustment."

Line Items

Each line item represents what is being credited back:

• Description — what the credit is for.
• Quantity — how many units.
• Unit Price — the price per unit being credited.
• Tax — the tax rate. If you are crediting a taxable sale, select the same tax rate so the tax is properly reversed.
• Amount — auto-calculated.

Click Add Line to credit multiple items. Click the trash icon to remove a line.

Below the items, you see:

• Subtotal
• Tax (if applicable)
• Total — the full credit amount.

Notes

Optional. Any additional notes about the credit. These appear on the credit note document.

Saving

Click Create to save as a draft, or Update if editing an existing draft.

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Issuing a Credit Note

A credit note starts as a Draft. To activate it:

1. Click the Issue button (arrow icon) on the draft credit note's row.
2. The credit note is posted. A journal entry is created that:
   • Debits your revenue account (reducing revenue).
   • Credits accounts receivable (reducing what the customer owes).

The status changes to Issued and the credit becomes available to apply against invoices.

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Applying a Credit Note to an Invoice

Once a credit note is issued, you can apply it to reduce an outstanding invoice balance:

1. Click the Apply to Invoice button (credit card icon) on the credit note's row.
2. A dialog opens showing the credit note number and remaining balance.
3. Select the invoice to apply the credit to. Only invoices from the same customer with an outstanding balance are shown.
4. Enter the amount to apply. It cannot exceed the credit note's remaining balance.
5. Click Apply.

The customer's invoice balance decreases by the applied amount. If the full credit note amount is applied, the status changes to Fully Applied.

✓ Tip: You can apply a single credit note across multiple invoices by applying partial amounts one at a time. Each application reduces the credit note's remaining balance.

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Credit Note Statuses

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Invoicing Settings

The settings page lets you configure defaults that apply to all invoices, estimates, and bills. Click Settings in the sidebar under Sales & Purchases.

The page has five tabs:

Invoices Tab

• Default Payment Terms — e.g. Net 30, Due on Receipt. Used to auto-calculate due dates.
• Default AR Account — the accounts receivable account new invoices post to.
• Default Invoice Tax — the tax rate pre-selected on new invoice line items.
• PDF Template — choose from eight print-friendly templates (Standard Professional, Compact Ledger, Formal Letterhead, Service Detail, Product Remittance, Project Summary, Public Sector, Monochrome Clean). A visual preview of each template is shown.
• Terms & Conditions — boilerplate text that appears on every new invoice.
• Footer Message — a short message at the bottom of invoice PDFs.

Estimates Tab

• Default Validity Days — how many days until a new estimate expires (default 30).
• Default Estimate Tax — the tax rate pre-selected on new estimate line items.
• PDF Template — choose a template for estimate PDFs.
• Terms & Conditions — default terms for estimates.
• Footer Message — a short message at the bottom of estimate PDFs.

Bills Tab

• Default AP Account — the accounts payable account new bills post to.
• Default Bill Tax — the tax rate pre-selected on new bill line items.
• Terms & Conditions — default terms for purchase bills.

General Tab

• Default Revenue Account — the income account pre-selected on invoice and credit note line items.
• Default Expense Account — the expense account pre-selected on bill line items.
• Home Currency — your business's primary currency (e.g. CAD, USD).
• Multi-Currency — enable to allow invoices and bills in foreign currencies. When enabled, you also set:
  • Default Currency — the default foreign currency for new transactions.
  • Forex Gain/Loss Account — where currency exchange gains and losses are recorded.
  • Unrealized Forex Account — where unrealized currency revaluation differences are tracked.
• Auto Reminders — enable to automatically email payment reminders to customers. Set how many days after the due date reminders are sent.
• Late Charges — see the Late Charges tab for full configuration.

Late Charges Tab

Configure automatic interest and penalty charges on overdue invoices:

• Enable Late Charges — master switch. When off, no late charges are calculated.
• Interest — charge a percentage on the overdue balance.
  • Interest Rate — the annual percentage rate.
  • Calculation Frequency — Daily (interest accrues each day) or Monthly (interest accrues after a full 30-day period).
  • Grace Days — number of days after the due date before interest starts accruing.
  • Income Account — where interest revenue is recorded.
  • Tax Rate — tax that applies to the interest charge.
• Penalty — charge a flat or percentage-based penalty.
  • Penalty Type — Flat (a fixed dollar amount) or Percentage (a percentage of the overdue balance).
  • Penalty Amount — the dollar amount or percentage.
  • Income Account — where penalty revenue is recorded.
  • Tax Rate — tax that applies to the penalty.
• Auto Late Charges — when enabled, Awditify automatically applies late charges to overdue invoices. Set how many days after the due date charges are auto-applied.

Click Save at the bottom of each tab to apply your changes.

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Tips for a Smooth Workflow

• Set up your settings first. Before creating invoices or estimates, visit the Settings page to configure your default accounts, tax rates, payment terms, and PDF template. This saves time on every new document.
• Use estimates for approval. Send an estimate before doing the work. When the customer accepts, convert to an invoice. This creates a clear audit trail from quote to payment.
• Issue credit notes instead of deleting invoices. If you make a billing error, issue a credit note against the invoice rather than voiding or deleting it. This maintains a proper audit trail.
• Enable online payments. Turn on Stripe payments in the invoice form to let customers pay by credit card. The payment is automatically recorded and the invoice status updates.
• Use duplicate for repeat invoices. If you bill the same customer regularly, duplicate a past invoice instead of creating from scratch. All line items, tax settings, and account mappings are copied.
• Check the Outstanding stat regularly. The Invoicing dashboard shows your total outstanding receivables at a glance. Use it to prioritize collection follow-ups.
• Configure late charges. Set up interest and penalties in the Late Charges tab, then use Apply Late Charges from the invoice view or bulk actions bar to charge overdue customers.
• Reconcile regularly. Invoice payments and credit note applications affect your bank and AR accounts. Reconcile your bank accounts monthly to ensure everything matches.

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Frequently Asked Questions

What is the difference between voiding and deleting an invoice?

Voiding keeps the invoice in the system with a Void status for your audit trail. The invoice number is preserved and cannot be reused. Deleting permanently removes the invoice. Use void for most situations; delete only for truly erroneous entries.

Can I edit an invoice after it has been sent?

Yes. Open the invoice view and click Edit. You can change most fields. Note that editing a paid invoice may require you to re-record or adjust payments.

How does converting an estimate to an invoice work?

When you convert an accepted estimate, Awditify creates a new sales invoice pre-filled with the estimate's customer, line items, quantities, prices, and tax selections. You can review and adjust anything before saving the invoice. The estimate status changes to Converted and links to the new invoice.

What happens when I apply a credit note to an invoice?

The invoice balance decreases by the applied amount. The credit note's remaining balance decreases by the same amount. A journal entry records the application. If the credit note fully covers the invoice balance, the invoice status may change to Paid.

Can I issue a credit note without linking it to an invoice?

No. Credit notes in Awditify are always linked to a specific invoice. This ensures proper tracking and prevents orphaned credits. The linked invoice must have an outstanding balance.

How do I refund a customer who already paid?

If the invoice is paid, create a credit note against it, then use the Record Payment button on the invoice to record a refund (negative payment). This properly tracks the money going back to the customer.

Do I need to set up tax rates before creating invoices?

Yes. Tax rates are configured in your Chart of Accounts under Sales Tax. Once set up, they appear as options in the tax dropdown on every invoice, estimate, and credit note line item. Set a default tax in Invoicing Settings to have it pre-selected.

Can customers pay online without a Stripe account?

Yes. Customers pay via Stripe Checkout using their credit card. They do not need a Stripe account. You need a Stripe account connected to Awditify to accept online payments.

How do recurring invoices work?

When you enable the recurring toggle on an invoice, Awditify automatically generates the next invoice on the scheduled date (e.g. monthly on the 1st). The new invoice is created as a draft. You can stop a recurring series from the invoice view by clicking Stop Recurring.