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What happens when you approve an invoice
Saving an invoice and approving it are two different steps. See what changes in your accounts, your stock and your tax when an invoice is approved.
· 2 min read · Hexabooks
In Hexabooks, saving an invoice and approving it are two different steps. You can save an invoice while you are still working on it. Approval is the moment it becomes part of your business records. Here is what happens at that point.
Your accounts are updated
When an invoice is approved, the debit and the credit are posted for you. The customer's account shows what they now owe, your sales account shows the sale, and the tax is recorded on its own line. Nobody has to key in a second entry.
Your stock moves
Stock movement is recorded when the invoice is approved, not when it is saved. So a draft invoice does not take items out of your stock, and the quantity changes only once you approve.
Your VAT is worked out
The default VAT rate is 13%. You can enter prices with the tax included or the tax added on top, and the invoice shows the amounts either way. The VAT shows up in your sales book and in your VAT reports.
Your IRD billing is sent
If IRD CBMS billing is switched on for your company, approved invoices and credit notes are posted to IRD. When a post does not go through, it is tried again every day, and the attempts are kept in a log you can read.
Why you cannot edit it afterwards
Once IRD mode is on for your company, an invoice cannot be edited or deleted. If something is wrong, issue a credit note for the right amount and raise a new invoice. That keeps a clear trail of what was billed and what was corrected.
Before you approve
Take a moment to check the customer, the date, the items and the quantities. These are the four things that are hardest to fix later.
Keep reading
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A trial balance lists every account with its debit or credit balance. Learn what to look at, and what to do when the two sides do not match.
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How to record a payment and a receipt
Record money you receive and money you pay out against the right customer or supplier, then check the day in the day book.
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