Creating Sales Invoice from Timesheet
In ERPNext, customers can be billed based on the actual number of hours an employee has worked for them. These billable hours are captured through Timesheets, ensuring accurate and transparent billing for service-based work.
Once a Timesheet is submitted, it can be directly converted into a Sales Invoice, allowing organizations to bill customers based on real-time recorded effort instead of fixed estimates.
Each submitted Timesheet acts as a billing source document that can be transformed into a Sales Invoice for customer billing.
How to Create a Sales Invoice from a Timesheet
- After submitting the Timesheet, click on Create Sales Invoice.
- Select the Item Code (product or service) and confirm the Customer to be billed.
- The system automatically prepares a Sales Invoice based on Timesheet data.
- The posting date and time are set to the current system date but can be modified if required by enabling the posting time option.
- Optionally, you may configure POS payments or convert the invoice into a credit note if needed.
- Save and submit the Sales Invoice to complete billing.
When generating a Sales Invoice from a Timesheet, ERPNext automatically pulls all relevant time entries, reducing manual effort and ensuring accuracy in billing calculations.
Alternative Method: Get Items from
ERPNext also provides a “Get items from” feature in Sales Invoice to fetch data from existing documents.
- Sales Order
- Delivery Note
- Quotation
Using this feature, key details such as customer information, addresses, currency, price lists, and items are automatically populated into the invoice.
Additional Features in Timesheet-Based Billing
- Accounting Dimensions
Allows tagging transactions to specific attributes such as Project, Branch, or Territory for segmented financial reporting. - Multiple Timesheets
Additional Timesheet entries can be added to a single Sales Invoice for consolidated billing.
This structure enables flexible billing models where multiple time records can be combined into a single invoice for efficient customer invoicing.
After Submitting the Sales Invoice
Once the Sales Invoice is submitted, ERPNext automatically updates the linked Timesheet with billing information.
- Total Billed Hours is updated based on invoiced time.
- Total Billed Amount reflects the invoiced value.
- % Amount Billed shows the proportion of billed vs billable work.
Additionally, a Salary Slip can also be generated from the Timesheet if the work is linked to employee payroll processing.
Timesheet-based invoicing ensures accurate, transparent, and activity-driven billing, improving both customer trust and internal financial control.
