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Invoice Generation

PSA handles the full invoice lifecycle — from generating invoices based on billable time and contracts to sending them to clients and recording payments. Invoices sync to Books for GL posting and financial reporting.

Creating Invoices​

From Billable Time​

The most common invoicing method for MSPs billing hourly:

  1. Go to Finance → Invoices and click + New Invoice
  2. Select Create from Time Entries
  3. Choose the client
  4. PSA lists all uninvoiced, approved, billable time entries for that client
  5. Select the entries to include (or select all)
  6. Review line items — each shows date, description, hours, work type, and rate
  7. Click Create Invoice

From Contracts​

For clients on recurring service contracts (managed services, retainers):

  1. Go to Finance → Invoices and click + New Invoice
  2. Select Create from Contract
  3. Choose the client and contract
  4. PSA generates line items based on the contract terms (monthly fee, per-device charges, etc.)
  5. Review and create

PSA also supports automated billing runs — scheduled jobs that auto-generate invoices for all active contracts on a recurring schedule (monthly, quarterly). Configure billing runs at Finance → Admin → Billing Run.

Manual Invoice​

Create a one-off invoice with custom line items:

  1. Go to Finance → Invoices and click + New Invoice
  2. Select Manual Invoice
  3. Choose the client
  4. Add line items: description, quantity, unit price, tax
  5. Create

Invoice Line Items​

Each invoice contains one or more line items:

FieldDescription
DescriptionWhat the charge is for
QuantityHours, units, or count
Unit priceRate per unit (pulled from work type rate or contract terms)
TaxApplicable tax rate
AmountCalculated total (quantity × unit price + tax)

Add custom charges, discounts, or adjustments as additional line items.

Invoice Workflow​

Invoices move through these statuses:

Draft → Approved → Sent → Paid
                       → Partial Payment
                       → Overdue
StatusDescription
DraftInvoice created but not yet finalized. Editable.
ApprovedReviewed and approved for sending. Line items are locked.
SentEmailed to the client. SLA timer starts for payment terms.
PaidFull payment received.
Partial PaymentSome payment received, balance outstanding.
OverduePayment not received by the due date.

Sending Invoices​

Once approved, send invoices to clients:

  1. Open the invoice and click Send
  2. PSA generates a PDF and emails it to the client's billing contact
  3. The email uses your configured invoice template (customizable at Admin → E-Sign Email Templates)
  4. Clients can also view invoices in Portal
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Configure autopay for clients on recurring contracts. When enabled, PSA automatically charges the client's payment method when an invoice is generated. Set up autopay at Finance → Autopay Management.

Recording Payments​

When a client pays:

  1. Open the invoice and click Record Payment
  2. Enter the payment amount, date, and method (check, ACH, credit card, wire)
  3. For partial payments, the remaining balance is tracked
  4. The invoice status updates to Paid or Partial Payment

Payments are also visible in Finance → Payments for reconciliation.

Credit Notes and Adjustments​

To issue a credit:

  1. Open the invoice
  2. Click Actions → Create Credit Note
  3. Enter the credit amount and reason
  4. The credit note links to the original invoice and reduces the outstanding balance

For invoice errors, use Actions → Void to void the invoice entirely, then create a corrected invoice.

⚠️

Voiding an invoice is irreversible and creates an audit trail entry. Use credit notes for partial adjustments; use void only when the entire invoice is incorrect.

Invoice Sync to Books​

When Books integration is enabled, invoices automatically sync to the general ledger:

  1. Invoice is created in PSA → GL entries are posted in Books (accounts receivable debit, revenue credit)
  2. Payment is recorded → GL entries update (cash debit, accounts receivable credit)
  3. Credit notes → GL reversal entries

Configure GL account mapping at Finance → Chart of Accounts. Each work type and product can map to a specific revenue account.

See Integrations for more on the PSA-Books connection.

Accounts Receivable​

The AR Dashboard (Finance → AR Dashboard) shows:

  • Total outstanding invoices by aging bucket (current, 30 days, 60 days, 90+ days)
  • Client payment trends
  • Overdue invoice alerts

PSA supports dunning — automated payment reminder emails for overdue invoices. Configure dunning schedules at Finance → Admin → Dunning.

Next Steps​