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 Banqup, 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 Banqup:
The customer creates the invoice
The invoice appears in the customer’s Purchase Invoices
Once sent, the same document appears in the supplier’s Sales Invoices
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 apply the following configurations.
1. Mark the business partner as self-billing
Go to Business Partners, double-click on a customer/supplier, then click Edit details (→ read more on editing business partners):
Tick “This is a self-billing supplier” if you will create invoices on the supplier’s behalf. (You’ll also need to configure numbering series, explained below in step # 2).
Tick “This is a self-billing customer” if the other party will create invoices on your behalf.
This confirms that:
A mandate exists
Both parties agree on the self-billing process
If this box is not ticked, self-billing documents will fail. If that happens, you’ll be able to edit your business partner from the document’s details.
2. Create a dedicated numbering series (for self-billing suppliers only)
Self-billing 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.
To create a numbering series:
In your business partner’s details, right under where you ticked “This is a self-billing supplier” in the previous step, configure the numbering series of your self-billing invoices and self-billing credit notes:
Save your changes.
The numbering of your self-billing invoices will be created automatically based on the series configured.
Creating a self-billing document with Document Creator
You can create self-billing invoices, credit notes, or quotes.
To create a self-billing document:
Open Document Creator.
Create a new document by clicking on the relevant self-billing document type (or clicking on New document > document type).
Select a supplier.
Enter the relevant information like document date, products, amounts, VAT.
Click Save as draft or Save and send.
Key difference from a regular invoice: you select a supplier, not a customer.
Notes
When creating a self-billing invoice or credit note in Document Creator, Banqup requires a dedicated self-billing numbering series.
If no series is configured for the supplier, an error is shown and the document cannot be saved or sent. To fix this, edit the supplier and configure a self-billing numbering series, as explained above.
Self-billing documents will be sent through the delivery channel set up in your business partner’s details.
→ Read more about Adding delivery channels
After sending, the document appears in your Purchase Invoices. If your supplier is a Banqup user, they’ll receive it in their Sales Invoices.
Importing self-billing documents
Self-billing documents can also be imported as a PDF or as an e-invoice just like regular invoices/credit notes.
When importing self-billing documents, Banqup still processes them through OCR.
What to do if the OCR detects the wrong document type
You can always correct this during the OCR validation stage:
Open the document with status Awaiting validation.
Change the document type from regular invoice to self-billing invoice, or the other way around.
Save.
Important notes
Relevant customers/suppliers must be correctly marked as self-billing partners, otherwise approving or sending will fail.
Verify the delivery channel of your business partner before sending a self-billing document.
Self-billing 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-billing.
Self-billing behaves differently from standard invoicing. Do not mix both flows without understanding the ins and outs.
FAQ
Why do I see a warning “This customer is set up for self-billing. They normally create their own documents.”?
Banqup shows this warning when the document is detected as a regular invoice but the selected customer or supplier is marked as self-billing. The warning is informational only and does not block you. If the document is truly a regular invoice, you can continue without making changes.
Why do I get an error “This supplier is not set up for self-billing. Edit their details to confirm you have a mandate.”?
This error appears when a document is detected as self-billing but the selected customer or supplier is not configured as self-billing. To resolve it, open the business partner’s details, enable the self-billing option, save the changes, and then return to the document to continue processing.
Can I use self-billing without a mandate?
No. A formal agreement is mandatory. Without it, the invoices may be legally invalid.
Do self-billing invoices appear in Sales or Purchase invoices?
They appear in Purchase Invoices for the creator (the customer) and in Sales Invoices for the receiver (the supplier).
Can I self-bill credit notes?
Yes. The same rules apply as for self-billing invoices.
Can I self-bill with Peppol?
Yes, as long as both parties are correctly registered on Peppol.