How to Make a Sales Invoice?

Issuing a properly filled out sales invoice to our customer is important for accounting and tax purposes. However, most businesses neglect to do this properly.

In this blog article, we will try to explain the importance of issuing a correct sales invoice, and how to do it.

What is a Sales Invoice?

  1. Sales Invoice serves as your legal evidence of your sales. Like any other legal documents, it should be properly documented.
  2. Sales Invoice are monitored and regulated by the Bureau of Internal Revenue (BIR). The BIR is responsible in monitoring and collecting taxes thereof.
  3. Sales Invoice shows the details of your sales. It includes the following:
  • No of Item sold
  • Unit of Measurement
  • Description of Item
  • Selling Price per Item
  • Total Sales
  • VAT
  • Name of Customer
  • Address
  • Date of Sale

 How to Make a Sales Invoice?

Here are the basic steps in making and issuing a sales invoice:

1.  Write the information of your customer, such as the following:

  • Full Name
  • Address
  • Date
  • Taxpayer Identification Number (TIN), if applicable
  • Contact Details such as telephone or mobile number

2.  Write details of the items sold, such as:

  • Quantity of item sold
  • Measurement
  • Description of Item Sold
  • Unit Selling Price
  • Total Sales Per Item

3.  Add the total sales per item to get the grand total.

4.  Determine the tax, in the form of Value-Added Tax (VAT), and the Vatable Sales. Here’s how:

  • Vatable Sales = Total Sales/ 1.12
  • VAT = Vatable Sales x 1.12
  • Total Sales = Vatable Sales + VAT

5.  Ask the customer to sign the sales invoice.

6.  Last but not the least, sales invoice should be issued in chronological order (in series).

PS

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If you chose to do it yourself, you may attend our scheduled workshops to learn and execute faster.

Disclaimer: The content of this article may become outdated because of changes in the rules and regulations over time. It does not substitute the need for inquiring professional advice.

Comments

  1. please teach me how to compute sales discount in the new BIR sales invoice issued if not a senior citizen.

  2. please let me know the answer.thank you