> For the complete documentation index, see [llms.txt](https://vendex.gitbook.io/vendex-invoice/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vendex.gitbook.io/vendex-invoice/user-guide/editor.md).

# Invoices

<figure><img src="https://2837573412-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FyceJcBYqGVwYe9kCiOub%2Fuploads%2FPilO2eFvtgBnE7a55yem%2FInvoice_1.png?alt=media&amp;token=0cc06933-46bb-4c5d-8ede-a28f5641b528" alt=""><figcaption></figcaption></figure>

### Understanding Invoice Workflow

Vendex supports the complete invoice lifecycle from creation to payment:

{% stepper %}
{% step %}

#### **Draft**

{% endstep %}

{% step %}

#### Pending

{% endstep %}

{% step %}

#### Overdue

{% endstep %}

{% step %}

#### Paid

{% endstep %}
{% endstepper %}

| Status  | Description                        | Actions Available   |
| ------- | ---------------------------------- | ------------------- |
| Draft   | Invoice created but not sent       | Edit, Delete, Send  |
| Pending | Sent to customer, awaiting payment | Remind, Cancel      |
| Overdue | Past due date without payment      | Escalate, Write-off |
| Paid    | Payment received and confirmed     | Download receipt    |

### Creating an Invoice

**Method 1: Create from Order**

If you have an existing purchase order with status 'Product Delivered' or 'Service Concluded', navigate to Orders, click the menu, and select 'Create Invoice'. The invoice will be pre-filled with order details.

**Method 2: Create New Invoice**

Go to the Dashboard or Invoices section and click the "+ New Invoice" button.

**Step 1: Customer Details**

Select existing customer from dropdown or click "+ Add New Customer" to create new contact with name, email, phone, TIN, and complete postal address.

**Step 2: Invoice Header**

Enter due date, invoice title, detailed description, invoice number (auto-generated or custom), and optional PO number.

**Step 3: Line Items**

Click "+ Add Line Item" and enter item description, quantity, unit price, HSN/Service code, and product category. The system automatically calculates line totals.

**Step 4: Financial Details**

Tax is automatically calculated at 7.5% VAT standard rate. Add discounts (flat amount or percentage), additional notes, payment instructions, and bank account details.

**Step 5: Preview & Send**

Review all details for accuracy. Click "Create Invoice" to finalize, then "Send Invoice" to email the customer. If FIRS integration is enabled, the invoice is automatically signed, transmitted to FIRS, timestamped, and a QR code is generated.

### FIRS Compliance Features

When FIRS integration is enabled, Vendex automatically handles:

* IRN Generation: Creates unique Invoice Reference Number in format {InvoiceNo}-{ServiceID}-{YYYYMMDD}
* Schema Validation: Ensures all mandatory fields present, correct data formats, valid HSN codes, and proper tax calculations
* QR Code Generation: Creates scannable verification code with cryptographic signature
* Digital Signing: Applies cryptographic signature using provided certificate keys
* Transmission: Sends encrypted payload to FIRS through partner Access Point with webhook notifications
* Confirmation: Verifies successful registration and updates invoice status in real-time

### Managing Invoices

Navigate to Invoices > Sent to view all invoices. Use filters for status (Draft, Pending, Paid, Overdue), date range, customer name, amount range, and invoice number.

| Action         | Description                  | When Available  |
| -------------- | ---------------------------- | --------------- |
| View           | See complete invoice details | Always          |
| Edit           | Modify invoice information   | Draft only      |
| Send Reminder  | Email customer about payment | Pending/Overdue |
| Record Payment | Mark as paid manually        | Pending/Overdue |
| Credit Note    | Issue refund/correction      | After signing   |

**Payment Reminders**

Vendex automatically sends reminders:

* 3 days before due date: Courtesy reminder
* On due date: Payment due today
* 7 days overdue: First overdue notice
* 14 days overdue: Second overdue notice
* 30 days overdue: Final notice

### Credit and Debit Notes

Credit Note: Issue when you need to refund a customer, correct an overcharged amount, cancel an invoice after signing, or provide discount after invoicing.

Debit Note: Issue when you need to charge additional amount, correct an undercharged invoice, or add forgotten items or services.

Creating Credit/Debit Note:

1. Open the original invoice
2. Click "Issue Credit Note" or "Issue Debit Note"
3. Select items to credit/debit or enter adjustment amount
4. Add reason/notes
5. Click "Create Note"

{% hint style="info" %}
Important: Credit and debit notes automatically reference the original invoice in the billing\_reference field for FIRS compliance.
{% endhint %}