Create Invoice

Learn how to create professional invoices for your customers in Digit Tally. This comprehensive guide covers both product and service invoices with all available options.

Prerequisites

Before creating your first invoice:

• ✅ Complete onboarding process
• ✅ Set up at least one customer (or add during invoice creation)
• ✅ Configure bank account for payment instructions
• ✅ Optional: Add products/services to catalog for faster invoicing

Accessing Invoice Creation

Method 1: From Sales App Dashboard

1. Navigate to https://sales.digit-tally.io
2. Click the Create Invoice button (top right)
3. Or click + New > Invoice

[SCREENSHOT: Sales App dashboard with Create Invoice button highlighted]

Method 2: From Invoices List

1. Go to Sales App > Invoices in sidebar
2. Click + Create New Invoice button

Method 3: Quick Keyboard Shortcut

Press Ctrl/Cmd + N from anywhere in the Sales App

Invoice Creation Form

The invoice creation form is divided into several sections for organized data entry.

[SCREENSHOT: Complete invoice creation form]

Step 1: Customer Selection

Choose or create the customer for this invoice.

Selecting Existing Customer

Field	Description	Required
Customer	Search and select from customer database	Yes

Steps:

1. Click the Customer dropdown field
2. Type customer name to search
3. Select the customer from results
4. Customer details auto-populate (address, email, phone)

[SCREENSHOT: Customer selection dropdown with search]

Adding New Customer (Quick Add)

If the customer doesn't exist:

1. Click + Add New Customer in the dropdown
2. Enter customer details in the quick-add form:

Field	Description	Required
Customer Name	Individual or business name	Yes
Email Address	Customer email	Yes
Phone Number	Contact number	Yes
Address	Physical address	No
TIN	Tax identification number	No
Customer Type	Individual or Business	Yes

3. Click Save and Continue
4. New customer is added and selected

[SCREENSHOT: Quick add customer modal]

Customer Database

Building your customer database makes future invoicing faster. Consider adding customers in advance from Customers section.

Step 2: Invoice Details

Configure the basic invoice information.

Invoice Information Fields

Field	Description	Default/Example
Invoice Number	Auto-generated unique number	INV-001
Invoice Date	Date invoice is created	Today's date
Due Date	Payment deadline	Invoice date + 30 days
Payment Terms	Payment period description	Net 30, Due on Receipt, etc.
Reference	Your internal reference (optional)	PO-123, Project X

[SCREENSHOT: Invoice details section filled out]

Configuring Dates

Invoice Date:

1. Click the date field
2. Select date from calendar picker
3. Or manually enter date (DD/MM/YYYY format)

Due Date:

• Automatically calculated based on payment terms
• Manually adjust if needed
• Common options: 7, 14, 30, 45, 60 days

[SCREENSHOT: Date picker interface]

Payment Terms Options

Select from preset terms or create custom:

• Due on Receipt - Immediate payment
• Net 7 - Payment within 7 days
• Net 14 - Payment within 14 days
• Net 30 - Payment within 30 days (most common)
• Net 45 - Payment within 45 days
• Net 60 - Payment within 60 days
• Custom - Define your own terms

Nigerian Business Practice

Net 30 is standard in Nigeria for B2B transactions. For retail/B2C, "Due on Receipt" is most common.

Step 3: Adding Invoice Items

Add products or services to the invoice.

Item Entry Table

Each invoice item row contains:

Column	Description	Example
Item	Product/service name or description	"Dell Laptop" or "Web Design"
Quantity	Number of units	2
Unit Price	Price per unit (NGN )	NGN 250,000
Amount	Calculated (Quantity × Unit Price)	NGN 500,000
Tax	VAT percentage	7.5%
Total	Final amount with tax	NGN 537,500

[SCREENSHOT: Invoice items table with sample items]

Method 1: Select from Catalog

If you've added products/services to your catalog:

1. Click the Item field
2. Start typing to search your catalog
3. Select the product/service
4. Quantity, price, and tax auto-fill
5. Adjust values if needed

[SCREENSHOT: Item selection from catalog dropdown]

Method 2: Manual Entry

For one-off items not in your catalog:

1. Type the item description directly in the Item field
2. Enter Quantity
3. Enter Unit Price
4. Select Tax rate (7.5% VAT or tax-exempt)
5. Amount and Total calculate automatically

Adding Multiple Items

1. Click + Add Line or press Tab after the last field
2. New row appears below
3. Repeat item entry process
4. Add as many items as needed

[SCREENSHOT: Invoice with multiple line items]

Deleting Items

• Click the trash icon (🗑️) at the end of the row
• Item is removed immediately
• Totals recalculate automatically

Step 4: Calculations and Totals

Understanding how invoice totals are calculated.

Automatic Calculations

The invoice automatically calculates:

Subtotal = Sum of all (Quantity × Unit Price)
VAT = Subtotal × 7.5% (if applicable)
Discount = Subtotal × Discount % (if applied)
Withholding Tax (WHT) = Subtotal × WHT % (if applicable)
Total = Subtotal + VAT - Discount - WHT

[SCREENSHOT: Invoice totals section showing all calculations]

Subtotal

• Sum of all line items before tax and discounts
• Updates automatically as items are added/removed

VAT (Value Added Tax)

Standard Rate: 7.5%

VAT Options:

1. Click VAT Settings button
2. Choose VAT treatment:
   • VAT Inclusive - Prices include 7.5% VAT
   • VAT Exclusive - VAT added on top of prices (default)
   • VAT Exempt - No VAT applied (for exempt items)

[SCREENSHOT: VAT settings options]

VAT Registration

Only VAT-registered businesses should charge VAT. Ensure you have a valid VAT certificate from FIRS before adding VAT to invoices.

Discount

Add a discount to the entire invoice:

Percentage Discount:

1. Click Add Discount
2. Select Percentage
3. Enter discount percentage (e.g., 10%)
4. Total updates automatically

Fixed Amount Discount:

1. Click Add Discount
2. Select Fixed Amount
3. Enter discount amount (e.g., NGN 5,000)
4. Total updates automatically

[SCREENSHOT: Discount options - percentage and fixed]

Discount Display:

• Appears as separate line above total
• Shows both percentage and amount (e.g., "10% - NGN 50,000")

Withholding Tax (WHT)

For B2B transactions where customer must withhold tax:

1. Click Add WHT
2. Select WHT rate:
   • 5% (Contracts)
   • 10% (Professional Services)
   • 2.5% (Rent)
   • Custom rate
3. WHT amount deducts from total
4. Customer pays reduced amount
5. You receive WHT credit

[SCREENSHOT: WHT selection dropdown]

WHT Example:

Subtotal: NGN 100,000
VAT (7.5%): NGN 7,500
Gross Total: NGN 107,500
WHT 5%: -NGN 5,000
Net Payable: NGN 102,500

WHT Certificate

Request a WHT certificate from your customer for tax filing. Digit Tally can generate WHT reports showing all withheld amounts.

Final Total

The final total appears prominently at the bottom:

• Displays in large text
• Shows currency (NGN Naira)
• Updates in real-time
• This is the amount customer must pay

Step 5: Additional Information

Add optional details to provide more context.

Notes (Internal)

Purpose: Internal notes not visible to customer

Use Cases:

• Remind yourself about special arrangements
• Note customer preferences
• Link to other documents
• Internal reference numbers

[SCREENSHOT: Internal notes field]

Terms & Conditions

Purpose: Legal terms shown to customer on invoice

Common Terms:

• Payment instructions
• Late payment penalties
• Warranty information
• Return policy
• Dispute resolution

Adding Terms:

1. Click Add Terms & Conditions
2. Type or paste your terms
3. Or select from saved templates

[SCREENSHOT: Terms and conditions text area]

Save Templates

Save frequently used terms as templates for quick reuse. Access templates from Settings > Invoice Settings.

Footer Notes

Purpose: Additional information shown at bottom of invoice

Common Uses:

• Thank you message
• Bank account details for payment
• Contact information
• Website or social media links

[SCREENSHOT: Footer notes field]

Step 6: Payment Instructions

Help customers pay easily by including clear payment information.

Bank Account Details

1. Click Add Payment Instructions
2. Select which bank account to display:
   • Primary account (default)
   • Select from connected accounts
3. Bank details appear on invoice:
   • Bank name
   • Account number
   • Account name

[SCREENSHOT: Payment instructions section with bank details]

Multiple Payment Methods

List alternative payment options:

• Bank transfer (most common)
• Cash payment location
• Online payment link (if available)
• Mobile money details

Step 7: Invoice Preview

Review your invoice before sending.

Preview Features

1. Click Preview button (eye icon)
2. See invoice exactly as customer will see it
3. Check for errors:
   • Customer details correct
   • Items and prices accurate
   • Calculations correct
   • All information complete

[SCREENSHOT: Invoice preview modal showing full invoice]

Preview Actions

From preview mode:

• Edit - Return to form to make changes
• Download PDF - Save invoice as PDF
• Print - Print invoice directly
• Send - Proceed to send invoice

Step 8: Saving the Invoice

Choose how to save and send your invoice.

Save as Draft

If you're not ready to send:

1. Click Save as Draft
2. Invoice is saved with "Draft" status
3. Not sent to customer
4. Can edit anytime
5. Invoice number is reserved

[SCREENSHOT: Save as Draft button]

When to Save as Draft:

• Waiting for final approval
• Need to verify information
• Customer details incomplete
• Creating invoices in advance

Save and Send

To send invoice immediately:

1. Click Save and Send
2. Email compose window opens
3. Email address pre-filled from customer record
4. Customize email message
5. Click Send Invoice

[SCREENSHOT: Email compose window for invoice]

Email Template:

Subject: Invoice [INV-001] from [Your Business Name]

Dear [Customer Name],

Please find attached invoice [INV-001] for NGN [Amount].

Invoice Date: [Date]
Due Date: [Due Date]
Amount: NGN [Amount]

Payment can be made via bank transfer to:
[Bank Account Details]

Thank you for your business.

Best regards,
[Your Name]
[Your Business Name]

Save Without Sending

Save and send later:

1. Click dropdown arrow next to Save and Send
2. Select Save Without Sending
3. Invoice saved with "Sent" status (but not actually sent)
4. Send later from invoice list

After Creating an Invoice

Once saved, you can perform several actions on the invoice.

Invoice Actions

From the invoice detail page or list:

View/Edit:

• View full invoice details
• Edit invoice (if not paid)
• Download as PDF
• Print invoice

Send/Share:

• Send via email
• Resend if customer didn't receive
• Share link via WhatsApp
• Generate public shareable link

Payment:

• Record payment received
• Mark as paid
• Record partial payment
• Send payment reminder

Other Actions:

• Duplicate invoice
• Convert to receipt (after payment)
• Issue credit note
• Void/cancel invoice

[SCREENSHOT: Invoice actions menu]

Product Invoice Example

Step-by-step example of creating a product invoice.

Scenario

ABC Trading sells 10 Dell Laptops to XYZ Corporation.

Steps:

1. Select customer: "XYZ Corporation"
2. Invoice date: January 28, 2026
3. Due date: February 27, 2026 (30 days)
4. Add item:
   • Item: "Dell Latitude 7420 Laptop"
   • Quantity: 10
   • Unit Price: NGN 450,000
   • Tax: 7.5% VAT
5. Subtotal: NGN 4,500,000
6. VAT (7.5%): NGN 337,500
7. Apply 5% discount: -NGN 225,000
8. Total: NGN 4,612,500

[SCREENSHOT: Completed product invoice example]

Service Invoice Example

Step-by-step example of creating a service invoice.

Scenario

Web design agency bills client for website development.

Steps:

1. Select customer: "Acme Corporation"

2. Invoice date: January 28, 2026

3. Due date: February 11, 2026 (14 days)

4. Add services:

   • Item: "Website Design & Development"

   • Quantity: 1

   • Unit Price: NGN 500,000

   • Tax: 7.5% VAT

   • Item: "Content Writing (10 pages)"

   • Quantity: 10

   • Unit Price: NGN 15,000

   • Tax: 7.5% VAT

   • Item: "SEO Optimization"

   • Quantity: 1

   • Unit Price: NGN 100,000

   • Tax: 7.5% VAT

5. Subtotal: NGN 750,000

6. VAT (7.5%): NGN 56,250

7. WHT 10% (Professional Services): -NGN 75,000

8. Total: NGN 731,250

[SCREENSHOT: Completed service invoice example]

Mixed Invoice (Products + Services)

You can combine products and services on the same invoice.

Example:

1. Dell Laptop (Product) - NGN 450,000 × 2 = NGN 900,000
2. Laptop Setup Service (Service) - NGN 5,000 × 2 = NGN 10,000
3. Software Installation (Service) - NGN 15,000 × 2 = NGN 30,000
4. Extended Warranty (Service) - NGN 50,000 × 2 = NGN 100,000
---
Subtotal: NGN 1,040,000
VAT 7.5%: NGN 78,000
Total: NGN 1,118,000

[SCREENSHOT: Mixed invoice with products and services]

Invoice Settings

Customize default invoice behavior.

Accessing Invoice Settings

1. Go to Sales App > Settings (sidebar)
2. Click Invoice Settings

Configurable Options

Setting	Description	Default
Invoice Prefix	Prefix for invoice numbers	INV
Starting Number	First invoice number	001
Default Terms	Default payment terms	Net 30
Auto Send	Automatically email invoices	Off
Currency	Invoice currency	NGN (NGN )
VAT Default	VAT included by default	Yes (7.5%)
Show Logo	Display logo on invoice	Yes
Template	Invoice design template	Classic

[SCREENSHOT: Invoice settings page]

Tips for Effective Invoicing

Best Practices

1. Use Clear Descriptions - Detailed item descriptions prevent disputes
2. Set Realistic Due Dates - Consider customer's payment cycle
3. Include Payment Instructions - Make it easy for customers to pay
4. Be Consistent - Use same format and terms across all invoices
5. Send Promptly - Send invoices immediately after delivery
6. Follow Up - Send reminders before and after due date

Common Mistakes to Avoid

• ❌ Missing or incorrect customer details
• ❌ Vague item descriptions
• ❌ Incorrect tax calculations
• ❌ Forgetting to attach payment instructions
• ❌ Not proofreading before sending
• ❌ Using inconsistent invoice numbering

Troubleshooting

Common Issues

Issue: Can't Find Customer in Dropdown

• Solution: Check spelling. Use the "Add New Customer" option. Ensure customer isn't archived.

Issue: Invoice Number Already Exists

• Solution: Each invoice must have a unique number. System prevents duplicates. Check if invoice was already created.

Issue: VAT Calculation Seems Wrong

• Solution: Check if VAT is set to "inclusive" or "exclusive". Verify 7.5% rate is correct. Recalculate manually to confirm.

Issue: Can't Save Invoice

• Solution: Ensure all required fields are filled (customer, items, amounts). Check for error messages. Verify internet connection.

Issue: Email Not Sending

• Solution: Verify customer email address is correct. Check spam folder. Try downloading and emailing manually.

What's Next?

Learn more about managing invoices:

• Edit Invoice - Modify existing invoices
• Send Invoice - Learn all sending and sharing options
• Generate Receipt - Create receipts after payment
• Add Customer - Build your customer database

Quick Start

Create your first invoice by duplicating this example. Add a real customer and adjust the details to match your business. Practice makes perfect!