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Invoicing

Raise IRD-compliant sales and purchase tax invoices. VAT (13%) is calculated automatically, TDS is withheld where applicable, and approving an invoice posts the matching ledger entries.

Sales invoices

Open Accounting → Invoicing → Sales (/app/accounting/invoice/sales). The list shows KPIs (approved count, net revenue, VAT collected, total billed) and filters by status, party, PAN, or date.

  1. New Invoice — enter the party name, PAN, VAT reg no, and address.
  2. Add line items with quantity, unit price, and VAT category (Standard / Exempt / Export). VAT 13% is computed per line, with a live Subtotal / VAT 13% / TOTAL panel.
  3. Save as Draft, then Approve. On approval the system posts: DR Receivable, CR Sales Revenue, CR VAT Payable, and the invoice becomes APPROVED.
  4. Approved invoices can be Cancelled, which posts a reversing entry.

Screenshot: New sales invoice — TODO

Abbreviated tax invoices (Rule 17 Ka)

When a buyer does not give you a PAN, you can issue an abbreviated tax invoice instead of a full one. Choose it in Document Type at the top of the new-invoice form.

  • It is legal only up to a capped value. The form shows the current cap and switches the option off as soon as the invoice total goes above it — issue a full tax invoice with the buyer's PAN instead.
  • The buyer cannot claim input VAT credit from it. That is why it is capped, and why the VAT Sales Book reports it separately.
  • It gets its own number series, AI-2082/83-00001, kept apart from the SI- tax invoice series.

The option is missing?

The cap comes from the enacted Finance Act threshold, not from a value built into the software. If no cap has been recorded for the current fiscal year, the option is hidden until an administrator adds it under Compliance → Thresholds.

Credit and debit notes

Issued a sales invoice that was wrong, or had goods returned? Amend it with a note rather than editing or cancelling the invoice — an approved invoice is a legal document and never changes.

Open Accounting → Invoicing → Credit / Debit Notes (/app/accounting/invoice/notes), or use Issue Note on the invoice itself.

What it does
Credit note Reduces the invoice — the customer owes less, and your output VAT goes down. Use for returns, overcharges, and cancelled items.
Debit note Increases the invoice — the customer owes more, and your output VAT goes up. Use for undercharges and additional items.
  1. Choose the note type and the approved invoice it amends. A draft invoice is edited, not credited.
  2. Give a reason — Nepal VAT Rules require it to be stated on the note itself.
  3. Add lines for what is being adjusted, entering positive amounts. The direction comes from the note type; never enter a negative amount.
  4. Save as Draft, then Approve to post it.

The buyer's details are copied from the original invoice and cannot be changed — an amendment has to name the same party as the document it amends. The invoice and its notes link to each other in both directions, and each note appears on the VAT Sales Book with the correct sign.

Screenshot: New credit note — TODO

Purchase invoices (bills)

Open Accounting → Invoicing → Purchase (/app/accounting/invoice/purchase). KPIs cover expense, recoverable input VAT, TDS withheld, and net payable.

  1. New Bill — enter the supplier, PAN, VAT reg no, and address.
  2. Add lines with VAT category and TDS category where the payment attracts withholding.
  3. Approve to post: DR Expense/Asset, DR Input VAT, CR Accounts Payable, CR TDS Payable (if any). The payable is netted of TDS.

Screenshot: New purchase bill — TODO

Tax configuration

Open Accounting → Invoicing → Tax Configuration (/app/accounting/invoice/tax-config) to maintain VAT rates per category and the TDS rate schedule (e.g. consultancy, rent, interest). Changes apply to new invoices; rates on existing invoices stay locked.

IRD essentials

A valid tax invoice carries the party PAN, a VAT breakdown, and your own VAT registration number. Invoices above the e-billing threshold are reported to IRD via CBMS. TDS is withheld under the Income Tax Act and tracked per line for quarterly e-TDS filing. Abbreviated tax invoices are shown as their own block on the VAT Sales Book, separate from full tax invoices.