Self-billing invoices

This article explains how you can handle self-billing invoices in FreeAgent.

Self-billing invoices can be made when an arrangement between a customer and supplier allows the customer to prepare the supplier’s invoice on their behalf and pay it directly.

There are two options for handling self-billing invoices in FreeAgent. You can either mirror the self-billing invoice, or explain the money in transaction as ‘Sales’.

Option 1: mirror the self-billing invoice

One option is to create an invoice that matches the information on the self-billing invoice. Select the contact and project (if applicable) that the invoice is related to and input all relevant information.

When the invoice is ready, don’t select ‘Send by email’ as you don’t need to send this invoice to your contact.

Instead, select ’Mark as Sent’. This will tell FreeAgent it doesn't need to be sent through the system, but will still add all the accounting entries for the invoice once it is marked as sent.

When you receive the funds in to your bank account on FreeAgent, select ‘Invoice Receipt’ as the transaction ‘Type’ and select the invoice you created to mirror the self-billing invoice.

Option 2: explain the transaction as Sales

Alternatively, if you don’t want to mirror the self-billing invoice, you can simply wait for the funds to be received in to your bank account in FreeAgent, then select ‘Sales’ as the transaction ‘Type’ and enter the relevant information in order for it to match the details on the self-billing invoice.

Find out more about how to record income without creating invoices in FreeAgent.