Table of Contents

  1. Introduction

  2. Why Efficient Invoicing Matters for Businesses

  3. Overview of Dolibarr’s Invoicing Module

  4. Initial Setup: Configuring Invoicing in Dolibarr

    • 4.1 Setting Default VAT, Payment Terms, and Currency

    • 4.2 Customizing Invoice Templates and Numbering

  5. Creating Invoices in Dolibarr

    • 5.1 Manual Invoicing

    • 5.2 Recurring Invoices and Automation

    • 5.3 Converting Quotes and Orders into Invoices

  6. Managing Clients and Third Parties

  7. Payment Tracking and Reconciliation

  8. Invoice Lifecycle: Drafts, Validated, Paid, Cancelled

  9. Automation Features for Better Efficiency

  10. Integrating with Other Modules (Projects, Orders, Accounting)

  11. Handling Credit Notes, Deposits, and Partial Payments

  12. Multi-Currency and International Invoicing

  13. Reporting and KPIs for Invoicing

  14. Compliance, Tax Rules, and Legal Considerations

  15. Common Mistakes and How to Avoid Them

  16. Security, Backups, and Data Integrity

  17. Tips for Scaling Your Billing System

  18. Conclusion

  19. Additional Resources

1. Introduction

Invoicing is one of the most fundamental tasks in business management. Whether you’re a freelancer issuing a handful of invoices each month, or a medium-sized company processing hundreds per day, your invoicing system must be accurate, efficient, and compliant. Dolibarr ERP & CRM offers a powerful invoicing module that simplifies and automates this critical function.

This article is a comprehensive guide to managing invoicing effectively using Dolibarr. We’ll explore best practices, automation tips, real-world use cases, and integrations to help you save time, reduce errors, and get paid faster.

2. Why Efficient Invoicing Matters for Businesses

Delays in invoicing lead to delays in payments. Manual errors can result in disputes, compliance issues, or even lost revenue. A well-managed invoicing system improves:

  • Cash flow predictability

  • Customer relationships

  • Compliance with tax regulations

  • Administrative efficiency

By using a structured tool like Dolibarr, businesses can automate, track, and scale their billing processes—ensuring accuracy and professionalism with every invoice issued.

3. Overview of Dolibarr’s Invoicing Module

Dolibarr’s invoicing functionality is part of its core module set, meaning it comes bundled with the default installation. It is directly connected to:

  • Third Parties (Clients, Customers)

  • Proposals (Quotes)

  • Orders

  • Payments

  • Projects

  • Accounting (optional or via integration)

Key features of the invoicing module include:

  • Manual and automatic invoice creation

  • PDF generation with customizable templates

  • Tax and VAT handling

  • Payment tracking and partial payments

  • Recurring invoice generation

  • Integration with bank and accounting modules

  • Emailing invoices to clients

The module is accessible from the top navigation under Billing > Customer Invoices once activated.

4. Initial Setup: Configuring Invoicing in Dolibarr

Before creating your first invoice, proper configuration is essential to ensure accuracy and compliance.

4.1 Setting Default VAT, Payment Terms, and Currency

Go to:

Home > Setup > Modules > Invoices

From here, define your global settings:

  • Default tax rate (VAT): Based on your country's rules

  • Default payment terms: Immediate, Net 30, Net 60, etc.

  • Accepted payment methods: Cash, Check, Bank Transfer, PayPal

  • Currency: Choose the base currency for your business

These settings will auto-fill invoice fields but can be overridden on a per-invoice basis.

4.2 Customizing Invoice Templates and Numbering

Customize invoice numbering for clarity and compliance. For example:

  • INV2025-001

  • FAC-0001

  • CLIENTCODE-2025-0001

Choose your numbering model under:

Setup > Modules > Invoices > Numbering Model

Customize PDF templates under:

Setup > Modules > Invoices > PDF Models

You can use Dolipress or custom templates for advanced layout and branding.

5. Creating Invoices in Dolibarr

Dolibarr offers flexible ways to create invoices, making it suitable for both manual and automated workflows.

5.1 Manual Invoicing

Steps:

  1. Navigate to Billing > New Invoice

  2. Choose a client (third party)

  3. Enter invoice lines: product/service, quantity, unit price

  4. Set the tax rate (if applicable)

  5. Add terms, comments, or conditions

  6. Save as Draft

Once satisfied, click Validate to generate the invoice number and make it official.

5.2 Recurring Invoices and Automation

For subscriptions, maintenance contracts, or retainers, Dolibarr supports recurring invoices:

  1. Go to Billing > Recurring Invoices

  2. Define the frequency (monthly, quarterly, annually)

  3. Specify start and end dates

  4. Link to a client and template invoice

  5. Set auto-generation rules

Dolibarr can automatically generate and email recurring invoices, reducing admin work.

5.3 Converting Quotes and Orders into Invoices

Dolibarr follows a natural sales workflow:

  • Proposal (Quote) → Order → Invoice

To convert:

  • From a validated quote or order, click Create Invoice

  • All relevant data (client, items, prices) will auto-fill

  • Edit if needed and validate

This ensures consistency across documents and speeds up billing.

6. Managing Clients and Third Parties

Invoices must be linked to a valid third party in Dolibarr.

  • Go to Third Parties > New Customer

  • Add billing address, VAT number, language, and payment terms

  • You can define default discounts or specific price levels per client

This data is used to automatically populate fields when invoicing. Keeping third party records updated ensures accurate and fast billing.

7. Payment Tracking and Reconciliation

Once an invoice is validated, Dolibarr allows you to record payments manually or automatically via bank integration.

Manual Payment Entry

  1. Open the invoice

  2. Click Add Payment

  3. Select payment method, amount, and date

  4. Validate

Dolibarr updates the payment status to Paid, Partially Paid, or Overdue accordingly.

Bank Module Integration

With the Bank Module enabled, you can:

  • Import bank statements (CSV, OFX, etc.)

  • Reconcile payments automatically

  • Assign payments to invoices using reference matching

This is especially useful for businesses handling multiple payments daily.

 

8. Invoice Lifecycle: Drafts, Validated, Paid, Cancelled

Understanding how invoices move through various statuses helps manage them more effectively.

8.1 Draft

  • Created but not official

  • Can be freely edited or deleted

  • No invoice number assigned yet

8.2 Validated

  • Locked for editing

  • Official invoice number generated

  • PDF and email features become active

8.3 Paid / Partially Paid

  • Reflects full or partial payment

  • Visible in the client account and financial reports

  • Tracked per payment method and date

8.4 Cancelled

  • Used for legally voiding an invoice

  • Often accompanied by a credit note (avoir)

  • Maintains audit traceability

Dolibarr maintains a full history of status changes, making audits and reviews transparent.

9. Automation Features for Better Efficiency

Automation is critical when scaling up your invoicing. Dolibarr offers several built-in automation features.

9.1 Automatic Invoice Generation from Orders

Activate this in Module Settings. Orders can trigger invoice creation when:

  • Status changes (e.g., from draft to confirmed)

  • Delivery is validated

  • Manual or scheduled cron jobs run

9.2 Scheduled Tasks with Cron Jobs

Set up Dolibarr’s internal cron (or system cron) to:

  • Generate recurring invoices

  • Send reminders for overdue payments

  • Archive or purge old invoices

Access cron settings under:

Home > Admin Tools > Scheduled Tasks

9.3 Emailing Invoices Automatically

You can define email templates with placeholders and set them to trigger upon invoice validation or payment. Go to:

Setup > Emails > Email Templates

This ensures consistent and timely communication with clients.

10. Integrating with Other Modules

Dolibarr’s invoicing module is designed to integrate seamlessly across the ERP system.

10.1 Projects and Timesheets

You can generate invoices based on:

  • Logged time

  • Project milestones

  • Contractual terms

This is ideal for service-based businesses and consultants.

10.2 Orders and Stock

For product-based businesses:

  • Validate stock when invoicing

  • Automatically decrement inventory

  • Add delivery notes and link invoices to shipments

10.3 Accounting

Dolibarr can export invoice data to:

  • Native accounting module (if enabled)

  • External tools like QuickBooks, Xero, or Sage

  • Accounting exports in CSV or other formats

Each invoice can include:

  • Ledger accounts

  • VAT breakdown

  • Payment method tagging

This simplifies bookkeeping and tax declaration processes.

11. Handling Credit Notes, Deposits, and Partial Payments

11.1 Credit Notes (Avoirs)

Used for refunds or correcting overcharges.

  • Create via the original invoice

  • Generates a linked document with negative values

  • Can be applied against future invoices or refunded

11.2 Deposits and Prepayments

  • Create Deposit Invoices linked to a proposal or order

  • Define percentage or flat prepayment

  • Final invoice subtracts the deposit value

11.3 Partial Payments

Dolibarr supports:

  • Tracking multiple payments against one invoice

  • Reporting remaining balances

  • Automatically updating payment status

These features are essential for long-term projects, subscription plans, or custom deals.

12. Multi-Currency and International Invoicing

For businesses working globally, Dolibarr supports:

  • Multi-currency invoicing

  • Exchange rate updates (manually or via external APIs)

  • Tax rules per country (VAT/GST)

  • Language-specific invoice templates

Set up in:

Setup > Modules > Multi-currency

Clients can have a default currency, and you can override exchange rates per invoice if needed.

13. Reporting and KPIs for Invoicing

Tracking performance is key to understanding your business health.

13.1 Built-in Reports

Dolibarr includes invoicing reports under:

Billing > Statistics

Reports include:

  • Total invoiced per period

  • Outstanding balances

  • Overdue invoices

  • Paid/unpaid ratios

  • Top clients by revenue

13.2 Dashboards and Graphs

Enable dashboards via:

Home > Dashboards > Invoicing

You can customize widgets for:

  • Aging reports

  • Payment method distribution

  • Monthly trends

13.3 Exporting Data

For further analysis, export to:

  • CSV

  • Excel

  • JSON (via REST API)

You can then use tools like Power BI, Tableau, or Google Sheets to visualize trends.

14. Compliance, Tax Rules, and Legal Considerations

Dolibarr is used across various legal jurisdictions. Key compliance features include:

  • Customizable VAT rates and types (e.g., intra-community)

  • Country-specific invoice templates

  • Sequential invoice numbering

  • Timestamping and audit logs

  • Archiving settings to match legal retention rules

For businesses in France, Germany, Canada, or the EU, you may need additional modules or customizations for:

  • FEC (Fichier des écritures comptables)

  • QR codes and e-invoicing

  • E-invoice mandates (Peppol, Chorus Pro)

Always check local accounting and tax requirements and consult with a legal advisor.

15. Common Mistakes and How to Avoid Them

Mistake Solution
Forgetting to validate invoices Set up reminders or automation triggers
Not tracking payment status Use bank integration and partial payment logs
Using incorrect tax rates Review client settings and default country rules
Not numbering invoices sequentially Use Dolibarr's built-in numbering models
Skipping backups of invoice documents Automate backups of the /documents folder
Emailing invoices manually every time Use predefined templates and cron automation

A well-maintained invoicing system eliminates redundancy and reduces stress during audits or tax filing.

16. Security, Backups, and Data Integrity

Invoices are financial records and must be protected.

16.1 Data Security

  • Set user roles carefully (read, write, delete rights)

  • Use HTTPS for all remote access

  • Enable two-factor authentication (via modules)

16.2 Backups

  • Back up the database and /documents/ directory regularly

  • Store backups off-site or on cloud storage (e.g., AWS S3, Nextcloud)

  • Automate daily or weekly backup jobs using cron scripts

16.3 Audit Trail

Enable system logging in:

Setup > Modules > Audit / Logs

This logs all actions (e.g., invoice creation, deletion, updates), ensuring transparency.

17. Tips for Scaling Your Billing System

As your company grows, consider:

  • Using MultiCompany module for managing multiple legal entities

  • Implementing REST API for integrating with payment gateways or CRMs

  • Using document versioning and workflow validation steps

  • Migrating to a VPS or cloud server for better performance

  • Building custom dashboards or reports for departments (finance, sales)

Scaling invoicing means automating more, reporting smarter, and securing data better.

18. Conclusion

Dolibarr’s invoicing system is one of its strongest features. With careful setup, consistent use of its automation features, and good data hygiene, you can:

  • Save administrative time

  • Ensure accuracy and compliance

  • Improve cash flow and client satisfaction

  • Prepare your business for scaling or audits

Whether you're a freelancer, a growing SME, or a large multi-site operation, Dolibarr provides the flexibility and tools needed to manage invoicing efficiently.

19. Additional Resources