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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).

Related Posts

  • Sales Invoice vs Billing Invoice
  • Difference Between a Sales Invoice and an Official Receipt
  • BIR Registered Looseleaf Official Receipt and/or Sales Invoice
  • Make Beautiful Presentations Online Through This Website
  • 5 B2B Sales Tips for Startups
  • How to Register Invoice per RR 7-2024?

Note: The content of this article may become outdated because of changes in the rules and regulations over time.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.

About Maria Lourdes M. Yanuaria, CPA, RFP, CPP, CFC

Maria Lourdes M. Yanuaria is the founder of MPM Consulting Services in January 2011. She's a Certified Public Accountant, Certified Financial Consultant, Certified Payroll Professional and Registered Financial Planner.

She graduated from the University of Santo Tomas and passed the CPA Board Exam in 2005 at the age of 19. She previously worked in Sycip, Gorres, Velayo & Co. (SGV), Shell Shared Services Asia BV and Central Bank of the Philippines.

Comments

  1. janice de belen cagata says

    December 14, 2013 at 09:16

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

    • Maria Lourdes M. Yanuaria, CPA says

      December 17, 2013 at 10:47

      Thank you for your comment. We’ll discuss your question on our future articles.

  2. janice de belen cagata says

    December 14, 2013 at 09:18

    please let me know the answer.thank you

  3. Eric says

    December 18, 2013 at 15:51

    Please check your formula for VAT. It says “Vatable sales x 1.12”. I believe it should only be “x .12”.

    Thanks!

  4. mary- an capacio says

    January 24, 2014 at 16:05

    i just want to know if it is right that we computed customer’s discount based on the amount net of vat

  5. randy says

    August 26, 2014 at 08:59

    Your formulation of how to compute VAT is not correct! It should be 0.12.

  6. Anne says

    April 28, 2015 at 01:48

    Please teach me how to compute Sales Invoice in NON-VAT. Thanks!

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