Self Billing Invoices

judithc
judithc Registered Posts: 5 New contributor 🐸
in General accounting discussion
Can anyone tell me what the advantage of using self-billing invoices is?

We have a couple of customers who ask us to accept these but this means that I don't have an invoice on my debtors list at the correct time to remind me to chase the customer for payment.

I can't see the point of it.

Comments

  • Nilesh Mandvia
    Nilesh Mandvia Registered Posts: 91 Regular contributor ⭐
    Self billing

    Some customer/purchaser use self billing, when they have large number of supplier. Benefit to them is that they do not have to wait for an invoice from their supplier i.e. you.

    Some times advertising companies use this facilties also London Transport uses too.

    Nilesh
  • melopita
    melopita Registered Posts: 2 New contributor 🐸
    Hi
    The advantage of self billing is that the invoice is automatically created by the AP system when a receipt note (GRN) is input into the Purchase Order system. This removes the need for keying the invoice and minimises matching issues (for three way matching of PO, Receipt and Invoice). Disadvantage is that you must get permission from HMRC.

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