How to create a recipient created tax invoice - Australia only

Why

Use a recipient created tax invoice (RCTI) when you, as the recipient (buyer), know the final weight, grade, or value of goods you received (e.g. milk, livestock, wool). You create the invoice and you pay it. Only use an RCTI if you and the supplier have agreed to this method and you meet ATO requirements for GST.

How it differs from a tax invoice

• A recipient created tax invoice is issued by the buyer on the seller’s behalf.
• A tax invoice is issued by the seller and given to the buyer to show what was sold, the price, and the GST charged.

Benefits

• Speeds up billing where the buyer holds the final delivery details.
• Reduces back-and-forth on weights, grades, and pricing.
• Keeps GST treatment consistent when set up correctly.

Steps to complete

1. Start the invoice

1. Go to Actuals.
2. Open either Needs Action or Tax Invoices.
3. Select Create Recipient Created Tax Invoice from the drop-down.
   1. The other option is Create Tax Invoice.

2. Complete the header

1. Enter Invoice date and Due date.
2. Choose Other party. This is mandatory. The other party must have a ABN saved. The ABN is required under ATO rules. 
   1. Click the pencil icon to add or edit ABN details from within the invoice.
3. Add Reference (optional, e.g. customer or order number).
4. Select Account (the bank account to display for payment).

3. Add invoice lines

1. Enter Code (for your internal use; not visible to the recipient).
2. Enter Description.
3. Enter Quantity (must be greater than 0).
4. Add Multiplier (optional, for extra calculation detail such as weeks or loads).
5. Enter Unit price (e.g. per head, kg, ha, bale).
6. Review the Line amount (calculated automatically).
7. Add an Additional note if needed.
8. Attach supporting files (DF, JPEG, PNG, CSV) using the paperclip (optional).
9. Expense lines (e.g. commissions, freight and storage ) can be added to a RCTI providing total amount is a negative.

TIP: Use Multiplier for time- or batch-based charges (e.g. weeks agisted, loads moved) so your calculation is clear.

4. Save or preview

1. Click Save draft to review later. Drafts appear in Needs Action with an orange tag.
2. Or click Preview & Generate to review before sending.

5. Preview and send

1. Click Preview & Generate.
2. Click Email to to confirm or add recipients. Sent invoices include a PDF attachment, and a BCC copy goes to your registered Farm Focus email.
3. Ensure the customer’s email is saved in Settings > Contacts. You can also click the pencil icon inside the invoice to update it.
4. Review the invoice.
5. Click Generate & Send. The invoice is assigned a number and becomes read-only.
6. A PDF is saved to your downloads and the invoice remains in Needs Action until matched to the income.

Managing recipient created tax invoices

• View past invoices: Go to Actuals > Tax Invoices.
• Monitor sent invoices: Sent invoices show a SENT token.
• Track unpaid invoices: Unpaid invoices remain in Needs Action.
• Create new RCTI: Click Create new (bottom right) on generated RCTI.

Repeating, copying, and deleting

• Open the invoice and select More options to:
  • Create repeating invoice for regular charges.
  • Copy to create a similar invoice and edit as needed.
  • Delete to remove an invoice.

Resend a historical recipient created tax invoice

• Open the invoice.
• Click Email to to add recipients and choose attachments, then send.
• Or download the PDF and email it manually.

Add a note to a recipient created tax invoice

• Go to Actuals > Tax Invoices
• Click the Settings icon (top right) 
• Go to Notes page (other option is General)
• Scroll down and enter a note under recipient created tax invoice. 

Print a recipient created tax invoice

• Open the invoice.
• Click the paperclip icon (top right).
• Click the print icon.

Print a DRAFT recipient created tax invoice

• In the preview screen of the RCTI.
• Click Print Draft (top right) or save as a PDF
• Why? It allows invoices, before they are finalised,  to be authorised by someone who does not have access to Farm Focus.

Troubleshooting

• Cannot enter a Other Party:  Update Other party. Ensure the customers ABN is saved in Settings > Contacts. You can also click the pencil icon to add or edit the ABN details from inside the invoice. 
• Cannot edit after sending: You cannot edit a recipient created tax invoice once it has been generated.
• Attachments not available at send: Attach files when creating the invoice so they are available in Preview.
• Why do amounts show as negative before sending? When you create a recipient created tax invoice, line amounts display as negative to record the purchase correctly in the system. On the generated invoice sent to the supplier, the amounts appear as positive.

More information

• How to create a tax invoice: Create a standard seller-issued invoice and send it to your customer. Learn more.

• How to manage contacts: Add GST numbers and email addresses in Settings > Contacts. Learn more.

• How to set default invoice and due dates: Create a standard invoice date and due date for all RCTI. Learn more.

• How to match income to invoices: Move invoices out of Needs Action by matching payments. Learn more.