How to raise a sales invoice in Xero
A guide to creating and sending an invoice in Xero
Every sale your business makes should be recorded as an approved invoice in Xero. This is how your income is captured for both your accounts and your VAT return.
Creating an invoice
In Xero, go to ‘Business’, then ‘Invoices’, and click ‘New Invoice’. Enter the customer name (or add a new contact), the invoice date, the due date based on your payment terms, and the line items with the correct account code and VAT rate. Add a description of the work. Select ‘Approve’ to finalise the invoice.
Sending the invoice
After approving, click ‘Send’ to email the invoice directly from Xero. Xero records the sent date and tracks whether it has been opened by the recipient. Approved invoices that have not been sent appear in ‘Awaiting Payment’ in Xero and may be included in your VAT return for the period (depending on if you are on the accruals or invoice basis for VAT).
💡 Good to know: Always use the ‘Approve’ button before sending. A Draft invoice is not included in your VAT return or income figures. Only Approved invoices are recognised as income in Xero.
Not found what you're looking for?
Please get in touch and we'll be happy to help:
Email: You can submit a request using our contact form
Phone: 020 3897 2233
Live Chat: Select the live chat icon on the bottom right