Recipient Created Tax Invoices

In the business world, tax invoices are typically issued by the supplier of goods or services. However, there are instances where the recipient may need to create the tax invoice and send it to the supplier. This process of recipient-created tax invoices can streamline payment procedures by allowing the recipient to initiate the invoicing process. This document provides guidance on recipient-created tax invoices and creating purchase orders from invoices.

Recipient-created tax invoices offer a practical solution for situations where the recipient needs to take charge of invoicing. By creating the tax invoice themselves, the recipient can ensure timely payment to the supplier without waiting for the supplier to issue the invoice. This method can be particularly useful in specific business arrangements or transactions.

For detailed information on recipient-created tax invoices, refer to the ATO Website.

When it comes to paying commissions to another business through a Recipient Created Tax Invoice (RCTI), you can simplify the process by generating a Purchase Order directly from the Invoice screen. This feature streamlines the workflow and ensures accurate documentation of the transaction.

To create a Purchase Order from an Invoice, follow these steps:

1. Access the Invoice screen in your system.

2. Click on the Options menu button located at the top right corner of the screen.

3. Choose the "Create Purchase Order" option from the menu.

By utilizing this functionality, you can seamlessly convert an invoice into a purchase order, facilitating efficient payment processing and enhancing business operations.