Invoicing & Payments¶
Last reviewed: 2026-03-31 · Nnamdi
Status: Complete
Route: /invoices → /invoices/new → /invoices/:id
1. What is it?¶
Invoicing in Finora lets a business create, send, and track requests for payment from their customers. When an invoice is created and posted, Finora automatically generates the corresponding double-entry journal entries in the General Ledger — the business owner does not need to know accounting to use it.
2. How does it work in Finora?¶
2.1 Navigating to Invoices¶
- Log in and select the business from the top header.
- In the left sidebar, click Transactions — the submenu expands.
- Click Invoices.
- The invoice list shows summary cards at the top: Total Invoiced, Total Paid, Outstanding, Overdue.
The Transactions submenu contains: Invoices, Quotations, Receipts, Expenses, Bills, Inventory, Fixed Assets, Petty Cash, Loans, Capital, Shareholding & Dividends, Drafts.
2.2 Creating a new invoice¶
Click New Invoice (top right of the invoice list). The form has these sections:
Customer Information¶
- Select existing customer (default) — choose from a dropdown of saved customers.
- Create new customer — opens inline fields to create the customer on the fly.
- Customer field is required.
Invoice Details¶
| Field | Required | Default | Notes |
|---|---|---|---|
| Invoice Date | Yes | Today | Date the invoice is issued |
| Due Date | Yes | Today + 10 days | When payment is expected |
| Reference | No | — | For PO numbers or external references |
Line Items¶
Each line item has: - From Inventory or Custom Item — toggle between pre-saved inventory items and ad hoc descriptions. - Description (required) - Quantity (required, default: 1) - Unit (optional) — Hours, Days, Weeks, Months, Sessions, Projects, Pieces, Units, Kilograms, Grams, Litres, Metres, Square Metres, Cartons, Packs, Dozen, Boxes, Rolls, Bags - Unit Price (required) - Amount — auto-calculated (Quantity × Unit Price) - VAT checkbox — checked by default; unchecking exempts this line from VAT - Discount Type — No Discount, Percentage (%), or Fixed Amount (₦) per line
Click Add Line to add more items.
Checkbox: "Add this item to inventory for future use" — saves the item for quick reuse on future invoices.
Tax & Discount (invoice level)¶
| Field | Default | Notes |
|---|---|---|
| VAT Rate (%) | 7.5 | Standard Nigerian VAT. Can be changed per invoice. |
| WHT Rate (%) | 0 | Withholding Tax — enter if applicable (e.g. 5% for school fees) |
| Discount Amount | 0 | Invoice-level discount (in addition to any line-level discounts) |
Invoice Summary¶
Live-calculated as you fill the form: - Subtotal (sum of line items before tax) - VAT amount - WHT deduction (shown as negative) - Total (what the customer owes)
Additional Information¶
- Payment Terms — free text, e.g. "Payment due within 10 days of invoice date."
- Notes — optional, appears on the customer-facing invoice PDF.
Payment Reminders¶
- Enable automatic payment reminders — on by default.
- Schedule: first reminder on due date, follow-ups every 5 business days (Mon–Fri only), stops automatically when invoice is paid or cancelled.
- Can be paused on the invoice detail page after creation.
Send Invoice to Customer¶
Choose one of three options: | Option | When to use | |--------|-------------| | "I have confirmed the customer's email — send now" | Customer's email is correct and you want Finora to email the invoice PDF automatically | | "Don't send — I will download and send the PDF manually" (default) | You'll handle delivery yourself (WhatsApp, courier, etc.) | | "Don't send — I am creating a record trail of a settled invoice" | Invoice has already been paid; you're back-filling the record |
Saving¶
Four buttons at the bottom: - Cancel — discards the form. - Preview — shows how the PDF will look before saving. - Save as Draft — saves without posting to the General Ledger. Drafts appear in the Drafts section and do NOT affect financial reports. - Create Invoice — posts the invoice and creates the journal entry.
2.3 What happens when "Create Invoice" is clicked?¶
Finora:
1. Assigns the next sequential invoice number: INV-YYYY-NNNNN (e.g. INV-2026-00001).
2. Posts a journal entry to the General Ledger (see section 3 for the accounting).
3. Sets status to Unpaid (or Overdue if the due date is in the past).
4. Starts the payment reminder schedule if enabled.
5. If "send now" was selected, emails the invoice PDF to the customer.
2.4 Invoice detail page¶
Accessed by clicking View Details on any invoice row, or navigating to /invoices/:id.
Header actions: - Edit Invoice — opens the invoice form pre-filled (only available before payment is recorded) - Void Invoice — cancels the invoice and reverses the GL entries (see section 6) - Download PDF — downloads the customer-facing invoice
Status badge: Unpaid · Overdue · Paid · Voided · Draft
Payment Reminders panel: Shows reminder history (Reminder #1, #2, #3… with dates sent) and a Pause button.
General Ledger Audit panel: Shows the journal entry created by this invoice — account codes, debit/credit amounts, and a VALID/INVALID badge. This is a read-only audit view.
2.5 Recording a payment¶
On the invoice detail page, click Record Payment (visible when status is Unpaid or Overdue). Fields: - Amount paid - Payment date - Payment method (bank transfer, cash, etc.) - Reference
Partial payments are supported. Finora updates the "Amount Due" column and changes status to Partially Paid until fully settled.
3. Business rules & constraints¶
| Rule | Detail |
|---|---|
| Invoice numbers are sequential and permanent | Once assigned, an invoice number cannot be changed or reused |
| Draft invoices do not affect GL | Only posted invoices create journal entries |
| Voided invoices cannot be un-voided | The void creates a reversal JE; the original remains in history |
| WHT reduces the receivable | WHT is deducted from the invoice total — it is what the customer withholds and remits to FIRS on behalf of the business |
| VAT at 7.5% is the default | This matches current FIRS regulations. Change only if the business has a VAT exemption |
| Automatic numbering cannot be overridden | Invoice numbers are system-generated; there is no manual override field |
| Payment reminders run Mon–Fri only | Weekends are excluded from the reminder schedule |
4. Nigerian regulatory context¶
VAT (Value Added Tax) - Standard rate: 7.5% (VATA 2019 amendment) - Finora posts output VAT to account 2021 (VAT Provision) - VAT is collected from the customer on behalf of FIRS and must be remitted monthly - Not all businesses are VAT-registered. Only those with annual turnover above ₦25M are required to register. If the business is not VAT-registered, VAT Rate should be set to 0.
WHT (Withholding Tax) - WHT is a tax the customer deducts at source and remits directly to FIRS/LIRS - Common rates: 5% (for services rendered by companies), 10% (for individuals) - Schools, consultancies, and service businesses are commonly subject to WHT - Finora posts WHT to account 1050 (WHT Receivable) — it is an asset because the business is owed a tax credit - WHT credits can be used to offset the business's annual corporate tax liability
5. Common customer questions¶
Q: "The invoice total on Finora is different from what I told the customer. Why?"
Check whether VAT and/or WHT are applied. VAT adds 7.5% to the subtotal; WHT deducts a percentage from what the customer pays. The "Total" on the invoice is after both. Example: ₦250,000 service + 7.5% VAT − 5% WHT = ₦256,250 total.
Q: "I sent the wrong invoice to the customer. Can I edit it?"
If the invoice has not been paid, use "Edit Invoice" on the invoice detail page. If it has been paid, you cannot edit it — you must void it and create a new one. Note: voiding a paid invoice requires reversing the payment record first.
Q: "My customer has already paid but the invoice still shows as overdue."
A payment has not been recorded in Finora. Go to the invoice, click "Record Payment", and enter the payment details. The status will update to Paid.
Q: "Why is there a 'WHT Receivable' on my Balance Sheet?"
WHT Receivable represents tax your customers have withheld and should remit to FIRS on your behalf. It is a credit you are owed against future tax bills. It is not cash — you cannot withdraw it.
Q: "My invoice shows as 'Draft' and doesn't appear in my revenue. Is that normal?"
Yes. Draft invoices are staging records only. They do not post to the General Ledger and do not affect P&L or Balance Sheet. Click "Create Invoice" (not "Save as Draft") to post it.
6. Known edge cases¶
Voiding a posted invoice¶
- On the invoice detail page, click Void Invoice.
- A confirmation prompt appears — confirm the void.
- Finora creates a reversal journal entry that exactly cancels the original JE.
- The invoice status changes to Voided.
- The original invoice remains visible in history — it is never deleted.
⚠️ Critical: If the customer has already paid, the payment record must be reversed before voiding. Voiding without reversing the payment will leave the GL out of balance. Escalate to Tier 3 if you see this situation.
Invoice with both VAT and WHT¶
The journal entry has four lines: - Dr: Accounts Receivable (invoice total, net of WHT) - Cr: Revenue (subtotal) - Cr: VAT Provision (VAT amount) - Dr: WHT Receivable (WHT amount)
Total debits = total credits. WHT reduces the receivable while simultaneously creating an asset (tax credit).
Backdated invoices¶
- Invoice date can be set to any past date.
- The journal entry posts with the specified date — not today.
- The invoice will appear in P&L for the period of the invoice date, not the entry date.
- Useful for back-filling records. Agents should confirm the customer understands the accounting period impact.
Deleting a draft vs voiding a posted invoice¶
- Drafts can be deleted outright — no GL impact.
- Posted invoices cannot be deleted, only voided — the reversal JE preserves the audit trail.
- If a customer asks to "delete" a posted invoice: "We can void it, which cancels it while keeping the history. Finora does not allow permanent deletion of posted invoices."
Customer created on-the-fly during invoicing¶
If "Create new customer" is used on the invoice form, the customer is saved to the Customers list immediately — even if the invoice is then cancelled or saved as draft. The customer record is not rolled back.
7. Escalation trigger¶
Escalate to Tier 3 (Founder) if: - Invoice was voided but GL still shows original revenue (possible failed reversal) - GL Audit panel shows "Valid" but the journal entry lines don't balance - A paid invoice was voided and Balance Sheet / P&L are showing unexpected values - Payment reminders are still firing after the invoice was marked Paid - Customer insists on permanently deleting a posted invoice
Escalate to Tier 2 (Support Lead) if: - Customer wants to edit a paid invoice - Customer wants to change VAT/WHT rates retroactively on a posted invoice - Invoice PDF figures don't match what's shown in the Finora UI - Customer is disputing a WHT deduction and asking how to claim it back
8. Last reviewed¶
2026-03-31 — Nnamdi. Verified against production (COA Test School Academy, Premium). Invoice list, new invoice form, invoice detail page, GL Audit panel, and payment reminder history all confirmed working. VAT + WHT double-entry confirmed correct (4-line JE).