This article explains how invoice statuses affect your ability to create credit invoices and outlines the purpose of each invoice type (Sales, Purchase, Credit, and Self-Bill) so you can manage invoicing and reporting confidently in Vincere.
⚠ Important: You can only add a credit invoice to a sales invoice when the status is Draft, Approved or Approved & Sent. If the invoice is Paid in Full, you cannot add a credit invoice to it.
View Available Invoice Types and Credit Options
Open the relevant sales invoice from the company account or profile.
Check the Status of the invoice.
If the status is Draft, Approved or Approved & Sent, click the Action button, then use the option to create a credit invoice.
If the status is Paid in Full, the option to create a credit invoice will not be available and you cannot add a credit invoice to that invoice.
📌 Note: If you are trying to create a credit against an invoice that has already been paid or against a company account/profile and you cannot see the option to create a credit invoice in the Action menu, check whether the invoice is already marked Paid in Full.
Understand Sales Invoices
A Sales Invoice is a document issued to your clients that details the products or services they have purchased. It includes itemised costs, any applicable sales tax, the total amount due, and the payment deadline.
Why Sales Invoices Are Important
Financial clarity: Sales invoices provide a transparent breakdown of the services rendered so clients clearly understand what they are paying for.
Timely payments: Clear invoices encourage clients to pay promptly, helping you maintain a steady cash flow for your agency.
Professionalism: Well-presented invoices demonstrate professionalism and attention to detail, building trust and reliability with your clients.
Legal compliance: Accurate invoices help ensure your agency complies with financial regulations and tax laws, reducing the risk of legal issues.
Record keeping: Sales invoices support accurate record keeping and financial management, which is essential for audits and long-term financial planning.
Understand Purchase Invoices
A Purchase Invoice is used to reconcile internal costs that your agency bears and does not bill to the client. Typical examples include candidate travel expenses or other internal costs that remain with the agency. Purchase invoices are vital for accurate financial reporting in Vincere Analytics.
Why Purchase Invoices Are Important
Accurate profit calculation: Purchase invoices allow you to subtract total internal costs from sales invoice totals so you can determine net placement profit.
Expense tracking: They help you keep a close eye on expenses that your agency absorbs, improving internal cost control.
Financial transparency: They support clear, accountable financial records, helping you understand the true cost of delivering your services.
🤓 Tip: To work out your net placement profit, take your total sales invoice figure and subtract the corresponding total purchase invoice figure. The result is your profit for that placement.
Understand Credit Invoices
A Credit Invoice (also known as a credit memo) is issued to clients to document a refund or credit that applies to a previously issued sales invoice. It adjusts the original invoice value to reflect discounts, corrections, or returned services.
Why Credit Invoices Are Important
Customer satisfaction: Credit invoices show clients that you take errors or changes seriously and address them promptly, helping maintain trust.
Financial accuracy: They keep your financial records accurate by formally documenting any refunds or credits applied to existing sales invoices.
Legal compliance: Properly recorded credit invoices help you remain compliant with financial regulations and maintain transparency in your transactions.
Professionalism: Using credit invoices demonstrates a professional and ethical approach to correcting billing issues.
Record keeping: Credit invoices support precise financial record keeping and make future audits easier and more reliable.
Understand Self-Bill Invoices
A Self-Bill Invoice is a commercial arrangement between a contractor’s limited company and a recruitment agency. Instead of the contractor issuing an invoice, the agency prepares the contractor’s invoice on their behalf and sends a copy to the contractor along with the payment.
Conditions for Self-Bill Invoices
Agencies may only issue self-billed invoices to a contractor’s limited company if both parties have agreed to this method of accounting.
The agreement must be in place before the agency issues self-billed invoices on the contractor’s behalf.
Benefits of Self-Bill Invoices
Reduced processing time: Self-billing streamlines the invoicing process and reduces administrative tasks for both the contractor and the agency.
Faster payments: It shortens the time from timesheet submission to when the contractor receives payment.
Efficient invoicing: It speeds up invoicing and payment processes for contractors, supports timely compensation, and improves contractor satisfaction.
Invoicing Automation in Vincere
Invoicing is built directly into Vincere rather than relying on a third-party extension. This allows Vincere to build automation into the system, saving you time and creating efficiency gains across your billing process.
Vincere automatically converts placements and approved timesheets into fully branded invoices, helping you move quickly from confirmed work to accurate billing without manual re-entry.