Table of Contents
What is self-billing
Self-billing, also known as reversed billing or reverse billing, is an invoicing process in which the customer (i.e., the buyer of goods or services) prepares an invoice instead of the supplier (i.e., the contractor). In other words, the customer is invoicing themselves.
Activating the module
You can activate the module through our app center, which can be found in Settings (gear icon) > App Center > Modules. Click on the Self-billing tile.
Note: This module is available with the Professional subscription.
Activating self-billing for contractors
Once you have activated the module, set up the employee as a contractor. Go to HRM > Employees. Click on the three dots at the end of the employee line and select 'Edit.' You can do this if you are editing an existing employee. You can then toggle a button to make them a contractor. This is necessary to send them an invoice. Below is an image of this button.
Entering self-billing information
Once you have enabled this button for the employee, the self-billing option will also appear within the employee. Here, you can enter the contractor's information for the invoice.
Click on self-billing on the left, and you will be able to enter the contractor's company information.
Self-billing project
Next, indicate whether the project is a self-billing project. You must do this so that you can assign a purchase hour rate to the contractor on a project level. A contractor may have a different purchase hour rate for each project.
In your project settings, set self-billing to 'yes' under invoicing. Then, in the 'employee' tab, give the contractor the purchase hour rate.
Creating a self-billing invoice
Now that you have everything set up, you can create a self-billing invoice. If you use approvals, you must first approve the hours before they appear on the invoice. To create an invoice for the contractor, go to Financial > Self-billing > + New self-billing invoice. By following these steps, you will arrive at the following screen.
This is similar to the screen for creating a standard invoice, except instead of selecting a customer, you select a contractor.
Viewing invoices as a contractor
So you are already receiving invoices as a contractor, but where can you view them? You can view them by clicking on: initials > My profile. This will take you to your personal dashboard, where you can view invoices.
