How to send an invoice on PayPal
22nd July 2014
Did you know you can create and send Invoices for free using PayPal? Your payee gets the Invoice through PayPal, they can then click on the link to pay straight through PayPal!
This tutorial is going to take you through how to set up an Invoice template, customise it, and then email an invoice.
Log in to PayPal, and click on 'Request Money'
We're going to assume that you already have created your Paypal all by yourself.
Click 'Create an Invoice'
Upload a logo
In 'Your Business Information', add a logo.
Dimensions must be:
If the image is quite text heavy, upload a PNG file, for better quality.
Edit Business Information
Still in 'Your Business Information', click the link 'Edit Business Information'. This is your business information. Note that this information is optional. For example, this is how I would fill it out for Zonua:
Edit Invoice Information
This stuff can be changed when you send out each individual invoice (remember that we're making a Template here), so select the options there that you will most likely use.
Here, I'm setting the Payment Terms that the invoice is due on receipt:
Reference is just a reference for you. So for example, if I'm going to use this to take a deposit for a job, then I'm putting the word in 'Deposits'.
Simply add new email address or add in more details:
You can also add in the recipient details when sending each individual invoice.
Enter the Name of the product/service you are selling, and the description:
You can enter Terms and Conditions (e.g. expiry date of a voucher), and then a Note to recipient:
If you are charging VAT
If, for example, you're dealing with tax myself in your returns, then leave the ‘Tax’ option blank. However, if you charge VAT, then this of course needs to be specified on the Invoice. In that case, click on the ‘Tax’ option and create a new Tax Name and Tax Rate. In this example, I'm calling the tax VAT, and putting in the rate at 23%.
Not only will this rate now show on the Invoice, but it means that Paypal will automatically calculate the VAT rate, whenever a new Invoice price is inputted.
Offer a Discount
You can also offer a discount, such as a €5 discount, or a 15% discount as below:
‘Memo’ is the last field, and this is simply a note for you, to remind you what the template is for, your Invoice recipients won’t ever see this.
Save Invoice Template
Save the Template, and name it something useful for yourself, so that you remember what this template was for. If this will be the main template you’ll be using, select ‘Make this my default template’.
Scroll down the bottom of the page, select Preview
And then . . .
When you set up an Invoice, you can then send it, and the Invoice will be sent to the recipient. The recipient will have the option to print and/or pay the invoice.
Here, I've sent myself an Invoice for €0.01, just to show how it looks.
The recipient can click on the link to see the full invoice, and then either pay, or print.
If you've registered with Paypal as a business customer, then the recipient doesn't necessarily need to pay using Paypal - they can pay by credit card, without having a Paypal account.
Then YOU’LL get an email saying “You’ve received new funds” email with the payment information and a link to the payment details
The payment details will be in the Transaction History of your PayPal account, on the homepage of your Paypal account.
So here's an example of an Invoice I created. Let's say the invoice was for a €100 deposit for a new website, with 15% discount, and with VAT of 23%.