Creating Invoices in Factumo

Creating invoices in Factumo is straightforward and ensures every invoice meets Spanish legal requirements. This guide walks you through the entire process from start to finish.

Before You Start

Make sure you've completed these setup steps:

1. Company information configured - See Company Setup Guide
2. At least one client added - See Managing Clients
3. Default VAT rate set - Typically 21% for most services

Creating a New Invoice

Step 1: Navigate to Invoices

From your dashboard, click Invoices in the main navigation, then click the Create Invoice button in the top right.

Step 2: Select Your Client

Choose the client you're invoicing from the dropdown menu. Factumo will automatically populate:

• Client's legal name
• Tax ID (NIF/CIF/NIE)
• Complete address
• Email address

Don't see your client? Click Add New Client to create a client record on the fly.

Step 3: Set Invoice Details

Configure the basic invoice information:

Invoice Number

Factumo automatically assigns the next sequential invoice number based on your configured numbering system. This number follows Spanish legal requirements:

• Sequential - No gaps in numbering
• Unique - Never reused
• Format-compliant - Matches your company settings

You can view but cannot manually change this number to ensure compliance.

Issue Date

• Default: Today's date
• Custom: Click the calendar to select a different date

Important: Invoice dates should generally align with the sequential numbering order. Creating older-dated invoices after newer ones may raise questions during audits.

Due Date / Payment Terms

Choose when payment is due:

• Due on receipt - Immediate payment
• Net 15 - Payment due in 15 days
• Net 30 - Payment due in 30 days (most common for B2B)
• Net 60 - Payment due in 60 days (B2B maximum in Spain)
• Custom date - Select a specific due date

Spanish B2B Law: The legal maximum payment term for B2B transactions is 60 days unless a longer term is explicitly agreed in writing.

Currency

Select the invoice currency:

• EUR (€) - Default for Spanish domestic invoices
• Other currencies - USD, GBP, SEK, NOK, etc. (see Multi-Currency Guide)

For foreign currencies, Factumo automatically fetches current exchange rates from the European Central Bank.

Step 4: Add Line Items

Line items describe what you're charging for. Click Add Line Item for each product or service.

Description

Provide a clear, specific description of the product or service:

Too vague: "Professional services" Better: "Web development - Homepage redesign" Best: "Web development services: Homepage redesign including responsive layout, contact form, and SEO optimization - March 2025"

Spanish tax law requires descriptions detailed enough for tax authorities to understand the transaction.

Quantity

Enter the quantity:

• Services: Hours, days, projects (e.g., 10 hours, 1 project)
• Products: Units, boxes, licenses (e.g., 5 units, 2 licenses)

Default is 1 if you're charging a flat rate for a project.

Unit Price

The price per unit before VAT:

• Enter the net price (excluding VAT)
• Use decimal separator (e.g., 1500.00 or 75.50)

Factumo automatically calculates the line total: Quantity × Unit Price

VAT Rate

Select the applicable VAT (IVA) rate:

• 21% - General rate (most services, goods, digital products)
• 10% - Reduced rate (hospitality, transport, certain food products)
• 4% - Super-reduced rate (basic necessities like bread, milk, books)
• 0% / Exempt - Specific exempt services (education, medical, financial)

See our Spanish Requirements Guide for detailed VAT guidance.

Special cases:

• EU B2B services - Select "Reverse Charge (0%)" and add note "Inversión del sujeto pasivo"
• Non-EU exports - Select "Export (0%)" and add note "Exenta de IVA - Exportación"
• Recargo de equivalencia - Additional charge field appears automatically

Add Multiple Line Items

Click Add Line Item to add more products/services to the invoice. Each line item can have a different VAT rate.

Example invoice with mixed VAT rates:

Step 5: Review Totals

Factumo automatically calculates and displays:

• Subtotal (Base imponible) - Sum of all line items before VAT
• VAT breakdown - Separate totals for each VAT rate used
• Total VAT - Sum of all VAT amounts
• Total Amount - Final amount including VAT (what client pays)

Example calculation:

Subtotal (21% VAT): €1,500.00
VAT (21%): €315.00

Subtotal (4% VAT): €75.00
VAT (4%): €3.00

Total VAT: €318.00
Total Invoice: €1,893.00

Double-check these totals before proceeding.

Step 6: Add Notes (Optional)

Add additional information for the client:

Invoice notes - Appears on the invoice itself:

• Special payment instructions
• Project references
• Thank you message
• Legal disclaimers

Example:

Gracias por su confianza en nuestros servicios.
Proyecto: Rediseño página web corporativa
Referencia: WEB-2025-03

Internal notes - Only visible to you and your team:

• Internal project codes
• Time tracking references
• Special billing arrangements

Step 7: Attach Files (Optional)

Upload supporting documents that you want to attach to the invoice:

• Project deliverables - Final files, reports
• Time sheets - Hourly breakdown
• Receipts - Expense documentation
• Contracts - Service agreements

Maximum file size: 10MB per file, common formats supported (PDF, DOC, XLS, ZIP, images).

Step 8: Choose Status

Select the initial status for your invoice:

Draft - Save for later completion

• Not counted in revenue reports
• Not assigned an official invoice number yet
• Can be edited freely
• Not visible to client

Finalized - Ready to send

• Assigned official sequential invoice number
• Counted in revenue/VAT reports
• Limited editing (see Managing Invoices)
• Can be sent to client immediately

Tip: Use Draft status when you need to verify details with the client before finalizing. Once finalized, the invoice is locked and corrections require credit notes.

Step 9: Create the Invoice

Click Create Invoice to generate your invoice.

What happens next:

1. Draft status - Invoice saved, you can continue editing
2. Finalized status - Invoice is locked and ready to send
   • Assigned official invoice number
   • Added to your invoice register
   • PDF generated automatically
   • Ready to email/download/share

After Creating the Invoice

Once your invoice is created, you have several options:

View Invoice

Click on the invoice to see the full detail view with:

• Complete invoice information
• Payment status
• Activity history
• Action buttons

Download PDF

Click Download PDF to get a compliant Spanish invoice PDF:

• Professional layout with your branding
• All mandatory legal fields included
• Ready to print or save locally
• Complies with Spanish invoicing regulations

Send via Email

Click Send Email to send the invoice directly to your client:

• Email sent to client's registered email address
• Includes PDF attachment
• Customizable email message
• Delivery tracking

Default email template:

Subject: Factura [INVOICE_NUMBER] - [YOUR_COMPANY_NAME]

Estimado/a cliente,

Adjunto encontrará la factura [INVOICE_NUMBER] por importe de
[TOTAL_AMOUNT].

Fecha de vencimiento: [DUE_DATE]

Si tiene alguna pregunta, no dude en contactarnos.

Un saludo,
[YOUR_COMPANY_NAME]

Share Link

Click Share Link to generate a secure link to the invoice:

• Client can view and download from browser
• No login required
• Access controlled by secure token
• Automatically expires after 90 days

Mark as Sent

If you send the invoice outside Factumo (e.g., printed copy, your own email), click Mark as Sent to update the status and track that the client received it.

Track Payments

As payments come in:

1. Record partial payment - For split payments or deposits
2. Mark as paid - When payment received in full
3. Add payment reference - Bank transaction ID, check number, etc.

See Managing Invoices for details on payment tracking.

Creating Recurring Invoices

For clients you invoice regularly (e.g., monthly retainers), use the recurring invoice feature:

1. Create the first invoice manually
2. Click Make Recurring
3. Set recurrence pattern:
   • Frequency: Weekly, monthly, quarterly, annually
   • Start date: When to begin
   • End date: When to stop (or indefinite)
4. Click Save

Factumo automatically:

• Generates new invoices on schedule
• Assigns sequential invoice numbers
• Sends email notifications
• Updates amounts if needed

Invoice Templates

Save time by creating invoice templates for common services:

1. Go to Settings → Invoice Templates
2. Click Create Template
3. Add line items with descriptions, prices, VAT rates
4. Give the template a name (e.g., "Monthly SEO Services")
5. Save template

When creating a new invoice, select Load from Template and choose your template. All line items populate automatically - just select the client and adjust as needed.

Quick Tips for Efficient Invoicing

Use Keyboard Shortcuts

• Ctrl/Cmd + N - Create new invoice
• Ctrl/Cmd + S - Save draft
• Ctrl/Cmd + Enter - Finalize invoice
• Tab - Move to next field
• Ctrl/Cmd + L - Add line item

Duplicate Existing Invoices

If you're creating a similar invoice to a previous one:

1. Open the previous invoice
2. Click Duplicate
3. Update client, dates, and any changed details
4. Create new invoice

All line items, descriptions, and prices copy over.

Use Description Snippets

For frequently used descriptions, create snippets:

1. Go to Settings → Snippets
2. Add common descriptions
3. When creating invoices, type / to insert snippets

Example snippets:

• /webdev → "Web development services - "
• /consulting → "Professional consulting services - "
• /hosting → "Server hosting and maintenance - "

Batch Operations

To create multiple invoices efficiently:

1. Prepare client list in advance
2. Use templates for common services
3. Set all to Draft initially
4. Review all drafts
5. Finalize all at once

Common Issues and Solutions

Issue: Client Not Found

Solution: Click Add New Client directly from the invoice creation screen, or go to Clients → Add Client first.

Issue: Wrong VAT Rate Applied

Solution: Before finalizing, change the VAT rate on the line item. After finalizing, you'll need to create a credit note and new corrected invoice.

Issue: Forgot to Add Line Item

Solution: If invoice is still Draft, edit and add the item. If finalized, create a supplementary invoice for the additional item or a credit note + new invoice with all items.

Issue: Client Information Changed

Solution: Update the client record in Clients → [Client Name] → Edit. This won't affect already-finalized invoices but will apply to new invoices.

Issue: Need to Change Invoice Number

Solution: Invoice numbers cannot be changed once finalized due to Spanish legal requirements. If you need to void an invoice, create a credit note for the full amount.

Best Practices

Verify Before Finalizing

Always double-check before clicking Create Invoice with Finalized status:

✓ Client information correct ✓ All line items included ✓ Descriptions clear and specific ✓ VAT rates appropriate ✓ Totals calculated correctly ✓ Due date reasonable

Once finalized, corrections require credit notes.

Maintain Consistent Descriptions

Use consistent wording for similar services across invoices:

• Helps with accounting and tax filings
• Makes it easier to analyze revenue by service type
• Professional appearance for clients
• Clearer audit trail

Issue Invoices Promptly

Create invoices shortly after delivering services/products:

• Same day: Ideal for maintaining cash flow
• Within 1 week: Acceptable for most B2B
• Monthly batching: Okay for retainer clients

Prompt invoicing improves payment speed and reduces disputes.

Keep Good Records

For every invoice, retain:

• Copy of sent invoice PDF
• Email confirmation or delivery proof
• Any client correspondence
• Payment confirmation

Factumo stores all this automatically, but you can export records anytime.

Next Steps

Now that you know how to create invoices:

• Spanish Requirements - Understand legal compliance in depth
• Managing Invoices - Track, edit, void, and export invoices
• Creating Estimates - Send quotes that convert to invoices

Need help creating invoices? Contact support at support@factumo.com