Self-billing allows a customer to create invoices or credit notes on behalf of a supplier. This setup is legally valid in many countries, but it comes with strict conditions and responsibilities. This article explains what self-billing is, how it works in Billtobox, and what you must configure before using it.
What is self-billing?
Self-billing is an arrangement where the customer creates the invoice instead of the supplier. Even though the customer creates the document, it is still considered a supplier invoice from an accounting and legal point of view.
This requires a prior agreement between the customer and supplier.
In Billtobox:
The customer creates the invoice
The invoice appears in the customer’s Accounts payable
Once sent, the same document appears in the supplier’s Accounts receivable
Important
Self-billing is only allowed if both parties have explicitly agreed to it through a formal mandate. If this is not in place, self-billing can lead to legal and tax compliance issues. If you are unsure whether you are allowed to self-bill, always check with your accountant first, and align with your business partners.
Required configuration before you can self-bill
Before creating any self-billing documents, you must first:
1. Activate the Peppol self-billing document types
Go to the Peppol registration information settings
Activate the self-billing document types
Click on Update settings.
Unless those document types are active, you won't be able to send your self-billing invoices/credit notes to Peppol.
2. Create a dedicated numbering series (for self-billing suppliers only)
Self-billed documents must use a separate invoice numbering sequence. This sequence must be different from your regular sales invoices and be aligned with the supplier’s expectations.
Go to your Inbound settings.
Under Create online, configure a new series for the autonumbering of self-billing invoices and self-billing credit notes.
The numbering of your self-billed invoices will be created automatically based on the series configured.
Creating a self-billed document
You can create self-billed invoices or credit notes on Billtobox.
To create a self-billed document:
Go to your Accounts payable.
Click on Create new self-billing invoice.
Select the right document type (self-billing invoice or self-billing credit note).
Select a supplier.
Enter the relevant information like document date, products, amounts, VAT.
Click Save.
From your accounts payables, select the document, then click Send.
Notes
Self-billed documents will be sent through the delivery channel set up for your supplier. If no delivery channel is set up, delivery will fail.
→ Read more about setting up delivery channels
After sending, the document appears in your Accounts payables. If your supplier is a Billtobox user, they’ll receive it in their Accounts receivables.
Importing self-billed documents
Self-billed documents can also be imported as an e-invoice just like regular invoices/credit notes.
After importing a self-billed document, it will go through the OCR. We advise to verify the OCR detected the document as self-billed before approving a document. To avoid having to manually verify those documents, we recommend creating your self-billed documents as explained above.
Important notes
Verify the delivery channel of your business partner before sending a self-billed document.
Self-billed documents use a separate numbering series. Align on the numbering series with your relevant business partners.
Always verify if the OCR correctly detected your document type as self-billed.
Self-billing behaves differently from standard invoicing. Do not mix both flows without understanding the ins and outs.
FAQ
How do I see if a self-billing document was properly sent to Peppol?
To confirm that an invoice was sent, check the Events tab in the document's details. From there, you'll see if your documents were successfully sent or not.
Can I use self-billing without a mandate?
No. A formal agreement is mandatory. Without it, the invoices may be legally invalid.
Do self-billed invoices appear in Accounts payable or receivable?
They appear in Accounts payable for the creator (the customer) and in Accounts receivable for the receiver (the supplier).
Can I self-bill credit notes?
Yes. The same rules apply as for self-billed invoices.
Can I self-bill with Peppol?
Yes, as long as both parties are correctly registered on Peppol.