Dolibarr is one of the most powerful open-source ERP and CRM systems, known for its modularity, simplicity, and efficiency. Among its many features, the invoicing module is one of the most used and appreciated. Whether you're a freelancer, a small business owner, or part of a growing company, issuing your first invoice in Dolibarr marks an essential milestone in your digital business management.

This detailed guide will walk you through every step needed to configure, create, and send your first invoice using Dolibarr, while ensuring your setup is clean, compliant, and scalable for future invoicing tasks.

1. Understanding the Dolibarr Invoice Workflow

Before diving in, it's helpful to understand how Dolibarr structures its invoicing system. The process generally includes:

1. Setting up your company and legal data

2. Configuring tax, currency, and numbering options

3. Adding or selecting a client (third party)

4. Defining products or services to bill

5. Creating the invoice (draft)

6. Validating and issuing the invoice

7. Sending it to the client (PDF/email)

8. Recording payments and tracking status

Each of these steps is supported natively in Dolibarr and can be customized as needed.

2. Pre-requisites: Activate and Configure the Invoice Module

To get started with invoicing, make sure the necessary modules are activated.

Step-by-step:

• Go to Home > Setup > Modules

• Activate the following modules:

  • Third Parties

  • Invoices

  • Products/Services (optional but recommended)

  • Bank/Cash (for recording payments)

After activation:

• Navigate to Setup > Module > Invoices

• Configure the invoice numbering scheme (e.g., INV{yyyy}-{0000})

• Set default payment terms (e.g., 30 days, due on receipt)

• Choose default tax (VAT) rates

• Set your preferred PDF template and logo

This ensures your invoices look professional and meet your legal requirements.

3. Enter Your Company Details

Your company information appears on all invoices and must be complete and accurate.

To configure:

• Go to Home > Setup > Company/Organization

• Fill out:

  • Company name

  • Legal status

  • Address

  • VAT or tax identification number

  • Logo (for invoice PDFs)

  • Bank account (IBAN/SWIFT)

Don’t forget to:

• Select your default currency and language

• Specify the responsible user or default sender

This data feeds directly into your invoice headers and footers.

4. Set Up Taxes and VAT

If your business is subject to VAT or sales tax, set these up before creating invoices.

To configure taxes:

• Go to Setup > Dictionaries > VAT Rates

• Add your standard rate (e.g., 20%) and name it (e.g., VAT Standard)

• You can set it as the default tax rate in the invoice module settings

Dolibarr allows you to apply:

• Per-line item taxes

• Global invoice tax

• Multi-rate configurations (depending on products or client type)

This ensures compliance with national and international taxation rules.

5. Add or Import a Client (Third Party)

Invoices must be linked to a client. In Dolibarr, clients are managed via the Third Parties module.

Adding a client manually:

• Go to Third Parties > New Third Party

• Select type: Client, Supplier, or Both

• Fill in:

  • Company or individual name

  • Billing address

  • VAT number (if applicable)

  • Contact email, phone, payment terms

You can also import clients via CSV under Tools > Import.

It’s good practice to create categories to segment clients (e.g., domestic vs. international).

6. Add Products or Services to Bill

While you can enter invoice lines manually, using predefined products/services speeds up the process.

To add products/services:

• Go to Products/Services > New Product or Service

• Define:

  • Name and description

  • Price (excl. or incl. tax)

  • Tax rate

  • Product type (product vs. service)

You can organize items into categories, assign barcodes or SKU, and manage inventory.

If you don’t need stock management, just focus on the service/product name and pricing.

7. Create Your First Invoice (Draft)

Now that everything is configured, let’s create the actual invoice.

Steps:

• Go to Billing > New Customer Invoice

• Select your client

• Add one or more lines:

  • Choose from products/services or enter manually

  • Set quantity, unit price, tax, and discount (if applicable)

• Define invoice date and due date

• Save as Draft

While in draft status, you can:

• Modify all fields

• Add notes (public and private)

• Attach files (e.g., contract, order form)

Take time to review all details before validation.

8. Validate and Issue the Invoice

Once satisfied, you need to validate the invoice to assign a reference number and make it official.

To validate:

• Open the draft invoice

• Click Validate

Dolibarr will:

• Assign the next available reference number

• Lock the structure (no more line edits)

• Generate the PDF version

This step is mandatory before recording payments or sending the document.

9. Generate and Send the PDF Invoice

A validated invoice can be downloaded or sent to the client.

Options:

• Click Download PDF

• Click Send by Email (Dolibarr must be configured for SMTP or use PHP mail)

You can:

• Attach additional documents

• Customize the message body using templates

• Include a payment link or instructions

Sending invoices directly through Dolibarr keeps everything centralized and saves time.

10. Record Payments and Monitor Status

Once the client pays, you should log the payment in Dolibarr.

To record a payment:

• Open the invoice

• Click Add Payment

• Enter:

  • Date of payment

  • Amount received

  • Payment method (bank transfer, cash, credit card)

  • Linked bank account

Dolibarr will update the status to:

• Paid if full amount is covered

• Partially Paid if payment is incomplete

You can also:

• Generate a receipt

• Export to your accounting system

• View aging reports or overdue balances

11. Automate Reminders and Follow-ups (Optional)

Dolibarr can automate payment reminders to clients with overdue invoices.

Enable reminders:

• Go to Setup > Modules > Emailing or Agenda

• Create scheduled reminders based on due dates

You can:

• Send emails automatically after X days overdue

• Include invoice PDF and polite reminder message

• Escalate reminders (e.g., gentle > firm > final)

Automation reduces manual follow-up time and improves cash flow.

12. Reporting and Exporting Invoice Data

Invoices aren’t just paperwork — they’re valuable data.

Dolibarr offers several reporting tools:

• Revenue by client, product, or date

• Paid vs unpaid invoices

• Tax summaries (useful for VAT reporting)

• CSV exports for use in Excel or accounting software

Access via Billing > Statistics or use Reports module for more depth.

13. Tips for a Smooth Invoicing Process

• Use consistent numbering schemes to avoid confusion

• Double-check VAT IDs for EU clients (use VIES if needed)

• Always validate invoices before sending

• Keep backups of sent invoices (Dolibarr does this by default)

• Train staff if multiple users are managing billing

Good invoicing habits lead to faster payments, fewer disputes, and smoother operations.

Final Thoughts

Issuing your first invoice in Dolibarr may seem like a technical chore, but it’s a critical step in running a professional business. With Dolibarr’s intuitive interface, modular flexibility, and robust features, you can create accurate, legally compliant, and well-formatted invoices in just a few minutes.

By taking the time to configure your invoice module properly, define your products/services, and set up your client database, you build a foundation that supports everything from recurring billing to advanced financial reporting.

Start simple. Get it right. And let Dolibarr handle the heavy lifting while you focus on growing your business.