Invoicing Basics

Guide 13: Invoicing Basics

Create and send professional invoices to clients

Overview

OtterLedger's invoicing feature helps you bill clients professionally and track payments. Create invoices, send them via email, and automatically track what's been paid and what's outstanding.

What you'll learn:

• Creating invoices
• Customizing invoice appearance
• Sending invoices
• Recording payments
• Tracking outstanding invoices

Time required: 10 minutes to create first invoice

Prerequisites

• At least one customer created (or create during invoice)
• Services or products to invoice for (optional, can add inline)

Creating an Invoice

Step 1: Start a New Invoice

1. Go to Invoices in the sidebar
2. Click New Invoice
3. The invoice editor opens

[Screenshot: Empty invoice editor]

Step 2: Select Customer

1. Click the Customer dropdown
2. Select an existing customer, or
3. Click Add New Customer to create one

Step 3: Set Invoice Details

[Screenshot: Invoice header filled in]

Step 4: Add Line Items

For each product or service:

1. Click Add Line

2. Fill in:

   • Description - What you're billing for
   • Quantity - Number of units/hours
   • Rate - Price per unit
   • Amount - Calculated automatically

3. Repeat for additional items

[Screenshot: Invoice with line items]

Step 5: Review Totals

OtterLedger calculates:

• Subtotal - Sum of line items
• Tax - If applicable (configure in settings)
• Total - Amount due

Step 6: Add Notes (Optional)

Add any notes for the customer:

• Payment instructions
• Thank you message
• Project references

Step 7: Save Invoice

Click Save to save the invoice.

Invoice Workflow

Invoices follow a simple workflow:

Draft → Sent → Viewed → Paid
                  ↓
               Overdue

Sending Invoices

Send via Email

1. Open the invoice
2. Click Send
3. Verify customer email
4. Add a message (optional)
5. Click Send Invoice

[Screenshot: Send invoice dialog]

Customer receives:

• Professional email with invoice details
• Link to view invoice online
• Payment instructions

Download PDF

To send manually:

1. Open invoice
2. Click Download PDF
3. Attach to your own email

Print Invoice

1. Open invoice
2. Click Print
3. Print or save as PDF

Recording Payments

When a customer pays:

Full Payment

1. Open the invoice
2. Click Record Payment
3. Enter:
   • Date - Payment date
   • Amount - Payment amount (full)
   • Account - Where money was deposited
   • Method - Check, Transfer, Card, etc.
4. Click Save

Invoice status changes to "Paid"

[Screenshot: Record payment dialog]

Partial Payment

1. Open the invoice
2. Click Record Payment
3. Enter partial amount
4. Save

Invoice shows:

• Amount paid
• Balance remaining
• Status: "Partial"

Repeat for additional payments until fully paid.

Customizing Invoices

Invoice Settings

Go to Settings → Invoices:

Logo and Branding

1. Settings → Invoices → Branding
2. Upload your logo
3. Set company name and address
4. Choose colors (accent color)

[Screenshot: Invoice branding settings]

Invoice Template

Choose from templates:

• Professional - Clean, business-focused
• Modern - Contemporary design
• Simple - Minimal, text-focused

Managing Invoices

Invoice List

Go to Invoices to see all invoices:

[Screenshot: Invoice list view]

Filtering Invoices

Filter by:

• Status - Draft, Sent, Paid, Overdue
• Customer - Specific customer
• Date Range - Invoice dates
• Amount Range - Invoice amounts

Search

Search by:

• Invoice number
• Customer name
• Amount

Tracking Receivables

Outstanding Invoices

See what customers owe:

1. Filter invoices by Unpaid
2. Or view Dashboard → Outstanding Invoices widget

Aging Report

See how old outstanding invoices are:

1. Go to Reports → A/R Aging
2. View invoices grouped by age:
   • Current (not yet due)
   • 1-30 days overdue
   • 31-60 days overdue
   • 61-90 days overdue
   • 90+ days overdue

[Screenshot: A/R Aging report]

Invoice Actions

Duplicate Invoice

Create a similar invoice:

1. Open existing invoice
2. Click Duplicate
3. Edit details (customer, items, dates)
4. Save as new invoice

Void Invoice

Cancel a sent invoice:

1. Open invoice
2. Click Void
3. Confirm

Voided invoices:

• Removed from outstanding
• Kept in history
• Shown as voided in reports

Delete Draft

Delete unsent invoice:

1. Select draft invoice
2. Click Delete
3. Confirm

Only draft invoices can be deleted.

Tips & Best Practices

1. Invoice promptly - Send invoices immediately upon completing work

2. Be specific - Detailed line items reduce questions

3. Set clear terms - "Due upon receipt" or "Net 30" - be explicit

4. Follow up - Send reminders for overdue invoices

5. Record payments immediately - Keep receivables accurate

6. Use invoice numbers - Don't skip or reuse numbers

7. Save customer defaults - Set up billing rates per customer

Troubleshooting

Q: Customer didn't receive invoice email

A:

• Check email address is correct
• Ask customer to check spam folder
• Resend or download PDF to send manually

Q: Invoice amount is wrong

A:

• If draft, edit directly
• If sent, void and create new invoice

Q: Payment recorded to wrong account

A:

• Edit the payment record
• Or delete and re-record correctly

Q: How do I handle deposits/retainers?

A:

• Create invoice for deposit amount
• Record payment when received
• Final invoice shows total minus deposit

What's Next?

Expand your invoicing:

• Guide 50: Services & Products - Build your catalog of billable items
• Guide 14: Recurring Invoices - Automate regular billing
• Guide 15: Customer Management - Organize customers
• Guide 32: A/R Aging Report - Track receivables

Need help? Visit the OtterLedger community at github.com/openledger or check the FAQ.