If you sell goods and services on credit, you need to issue a sales invoice. If you need to correct any discrepancies or returns for an invoice already issued, you need to issue a credit note to correct or record the returns for the original invoice.

- Source documents may vary in colour shape or size, etc. The examples shown are for a fictitious entity in South Africa to illustrate some basic principles. Other countries have very similar documents. Please check with your accountant or taxation authorities for professional advice.

You need to issue a source document to document the sales transactions to your debtors (customers) on credit. If these sales transactions are for the sale of any services or goods, sold on credit, and which is not your trading stock items, these invoices should be entered in the Input→Batch Entry menu option.

In these cases, you need to issue a hand-written sales invoice and hand or send it to your debtor (customer). You may use pre-printed invoices, which you may design for your business requirements. These sales invoices, should be pre-numbered and should be written clearly in permanent ink, which cannot be erased, fade or smudge.

Before you hand or send these sales invoices to your debtors (customers), it is advisable to check that the entries (description of the service rendered or goods sold, pricing and discounts) are correct.

An example of an invoice is as follows:

- If you are registered for VAT/GST/Sales Tax, you also need to check whether the VAT/GST/Sales Tax is applicable to the items entered on the sales invoice. You should note that this invoice must comply with certain requirements and that different percentages may apply for the Output VAT/GST/Sales Tax for some items on the invoice. Other items may be excluded from VAT/GST/Sales Tax.

- Should you sell trading stock items or service items from your stock item code file, sales invoices will automatically be generated in the Input→Documents→Invoices→Enter menu option.

You may need to issue credit notes to correct any entries entered on a previous invoice sent to a debtor (customer). The credit note looks and contains the same information as the invoice. It may also differ in colour. The amounts, or a portion thereof, must be accurately calculated and the portion of discount and VAT/GST/Sales Tax (if applicable) on the credit note must be clearly indicated.

Credit notes issued to correct or adjust sales invoices on credit (not your trading stock items) should be entered in the Input→Batch Entry menu option.

- These credit notes may also be entered in the sales journal, but if you have many invoices, you may create a debtor allowances journal or credit note journal in the Setup→System Parameters→Batch Type menu option.

Before you can start to enter credit notes in your sales journal or sales returns journal, it is advisable to check that the entries (description of the service or goods received, pricing and discounts) are correct.

An example of a credit note is as follows:

- If you are registered for VAT/GST/Sales Tax, you also need to check whether the VAT/GST/Sales Tax is applicable to the items entered on the credit note. The VAT/GST/Sales Tax must also be correctly calculated and / or apportioned to correct the Output VAT/GST/Sales Tax charged on the original sales invoice.

- An Invoice must comply with certain requirements and different percentages may apply for the Output VAT/GST/Sales Tax for some items on the invoice. Other items may be excluded from VAT/GST/Sales Tax.

- Should a credit note need to be issued for trading stock items or service stock items for which an invoice was already issued, you need to create this credit note in the Input→Documents→Credit Notes menu option. In this case, TurboCASH will generate the printed source document, which you may hand or send to your debtor (customer).