How to Configure Sales Invoice and Credit/Debit Note in iDempiere

The Sales Invoice and Credit/Debit Note window in iDempiere is the core accounts receivable document used to bill customers, apply tax, and issue credit or debit notes.

Every completed invoice drives receivables balances, tax reporting, and sales revenue accounting, making correct configuration essential for accurate retail financial close.

Process Flow

Business Rules

• Only active tax rates are available for selection on invoice lines.
• Target Document Type decides whether the record posts as an Invoice or Credit Memo.
• Invoice lines can be generated automatically from a linked Shipment or Purchase Order of the business partner.
• Combined tax rates split automatically into components on the Invoice Tax tab.
• Price List determines the default Unit Price and List Price on new invoice lines.
• Grand Total recalculates automatically whenever lines or taxes change.
• Document Status must move from Drafted to Completed before the invoice posts to accounting.
• Price includes Tax controls whether entered prices are treated as tax-inclusive.
• Payment Rule and Payment Term determine the due date used for receivables ageing.

Prerequisites

• Business Partner and Partner Location configured.
• Organization (store or branch) configured.
• Document Type configured for AR Invoice and AR Credit Memo.
• Price List configured with product pricing.
• Tax Category and Tax Rate configured.
• Shipment or Purchase Order completed, if invoice lines will be generated from delivery.
• Sales Representative and User/Contact linked to the Business Partner.

Configuration Steps

Step 1: Set Up the Invoice Header

Create a new record, select the Business Partner and Partner Location, set the Target Document Type, and confirm Price List, Currency, Payment Rule, and Payment Term.

Field	Sample Value	Description
Target Document Type	AR Invoice	Sets the document as a credit note instead of a standard invoice
Business Partner	ALPHA RETAIL SOLUTIONS	Customer being billed or credited
Partner Location	Chennai	Ship-to/bill-to location of the customer
User/Contact	Karthik	Customer contact linked to the transaction
Price List	Standard Sales Price List	Determines default product pricing
Currency	INR	Transaction currency
Sales Representative	Praveen	Store staff responsible for the sale
Payment Rule	On Credit	Defines how the invoice will be settled
Payment Term	Immediate	Sets the due date for the receivable
Date Invoiced	07/01/2026	Transaction date used for invoicing
Account Date	07/01/2026	Date used for accounting postings

Step 2: Generate Invoice Lines from a Shipment or Receipt

Click Create lines from, select the matching Shipment/Purchase order, confirm the quantity to invoice, and click Create lines from Invoice to load the lines.

Field	Sample Value	Description
Business Partner	ALPHA RETAIL SOLUTIONS	Filters shipments for the selected customer
Shipment/Receipt	570001_07/01/2026	Source delivery document for the invoice lines
Quantity	15	Delivered quantity available to invoice
UOM	Each	Unit of measure for the product
Product	AASH-ATTA-5KG_Aashirvaad Atta — 5kg	Product being invoiced

Step 3: Review and Adjust Invoice Line Details

Open each Invoice Line, confirm Product, Quantity, Price, and Tax, and verify the Line Amount matches quantity multiplied by unit price.

Field	Sample Value	Description
Line No	10	Sequence of the line on the invoice
Shipment/Receipt Line	10_15_AASH-ATTA-5KG…	Source shipment line the invoice line was created from
Product	AASH-ATTA-5KG_Aashirvaad Atta — 5kg	Item being billed
Quantity	15	Billed quantity
UOM	Each	Unit of measure
Price	280.00	Net price used for the line
Unit Price	280.00	Price per unit before tax
List Price	285.00	Reference list price from the price list
Tax	CGST/SGST 18%	Combined tax rate applied to the line
Line Amount	4,200.00	Quantity multiplied by unit price
Printed	Checked	Controls whether the line appears on the printed invoice

Step 4: Verify the Tax Breakup

Open the Invoice Tax tab and confirm the Tax base Amount

Field	Sample Value	Description
Tax	CGST 9%	Central GST component of the combined rate
Tax	SGST 9%	State GST component of the combined rate
Tax base Amount	4,200.00	Line amount used to calculate tax
Tax Amount	378.00	Calculated tax value per component
Price includes Tax	Unchecked	Confirms the entered price excludes tax

Step 5: Complete and Post the Invoice

Review Total Lines and Grand Total on the Status section, then run Document Action and select Complete to post the invoice or credit memo.

Field	Sample Value	Description
Total Lines	4,200.00	Sum of all invoice line amounts before tax
Grand Total	4,956.00	Total invoice amount including tax
Document Status	Drafted	Current workflow state of the document
Document Type	AR Invoice	Confirms the posting type before completion
Document Action	Complete	Action used to finalize and post the document

Note: Once a document status changes to Completed, header and line fields become read-only. Use a Credit Memo or Reversal for corrections instead of editing a posted invoice.

Common Issues and Resolutions

Issue	Cause	Resolution
Create lines from Invoice returns no records	Shipment/ Purchase order not completed or already fully invoiced	Complete the shipment first and confirm remaining quantity
Invoice posts as Invoice instead of Credit Memo	Target Document Type left as AR Invoice	Set Target Document Type to AR Credit Memo before completing
Grand Total does not match expected amount	Price includes Tax checkbox set incorrectly	Verify Price includes Tax matches the store’s pricing policy
Document cannot be completed	Mandatory header fields missing, such as Price List	Fill all mandatory fields before running Document Action
Duplicate Tax lines appear	Multiple tax rates mapped to the same tax category	Review Tax Category setup and remove duplicate rates
Line price differs from Price List	Unit Price manually overridden during entry	Recalculate the price using the Price List reference

Next Steps

• Configure Payment Allocation to settle the invoice against customer receipts.
• Configure Document Type sequencing for AR Invoice and AR Credit Memo numbering.