Self-billing

Some customers issue the invoice for you, such as a platform, an app store or a publisher. Such a self-billing invoice counts like an invoice from you. You record it under Self-Billing as income, finalize it and link it to the payout on your account.

When you need this

Whenever money for your work arrives without you writing an invoice, because your client sends you a statement instead. Typical cases are advertising revenue, app sales, royalties from publishers and statements from agency platforms.

Legal background Under § 14 Abs. 2 UStG the recipient of a service may issue the invoice if both of you agreed to it beforehand. The document must then carry the word “Gutschrift” (§ 14 Abs. 4 Satz 1 Nr. 10 UStG). This self-billing invoice is your invoice: it counts toward your revenue in the VAT return and in the EÜR. If something is wrong, you may object to it. It then loses its effect as an invoice.

The Self-Billing list with status and payout

Import a self-billing invoice

Choose Self-Billing in the sidebar.
Click Import Self-Billing Invoice… in the toolbar and choose a PDF, XML or image file. You can also drag files straight onto the list.
Folnaro creates a draft for each file and opens it in the inspector. The file appears under Files.
Enter the details from the statement (see below) and click Save (⌘S).

Without a file, create one with File > New > Received Self-Billing Invoice or New Self-Billing Invoice in the toolbar.

The details

Platform, Invoice number and Invoice date from the document.
Country of the platform as a two-letter code such as IE or US. Folnaro suggests the VAT treatment from it.
VAT ID of the platform. The EC sales list needs it for platforms in other EU countries.
Settles a service period: the period is often one or two months before the payout. Then enter Period from and Period until.
Under Amounts: Net, VAT and Gross in EUR. For a statement in a foreign currency, enter Invoice currency, Gross in currency and Exchange rate.
Payout reference, as it appears on the bank statement. A bank transaction that carries this reference is linked automatically.

A draft self-billing invoice in the inspector

VAT of a self-billing invoice

Choice	When
Domestic with VAT	The platform is based in Germany and shows German VAT.
EU, recipient owes the tax	The platform is based in another EU country and owes the tax there. The statement appears in the VAT return and the EC sales list.
Outside the EU, not taxable in Germany	The platform is based outside the EU.
Not taxable	The payment is no consideration for a service. It only counts in the EÜR.

If you are unsure whether a payout is taxable, ask your tax advisor. More on the recipient owing the tax in Reverse charge and customers in other EU countries.

What Folnaro checks

When you finalize, Folnaro checks the draft. If something is missing, the messages appear right under the form and stay there until they are resolved:

Platform, number and amount of the self-billing invoice are filled in.
Net and VAT add up to the gross amount.
With a treatment without German VAT, the VAT is 0.
The date is plausible.
The service period does not end before it starts.
With EU, recipient owes the tax, the platform’s VAT ID is filled in.
With a foreign currency, an exchange rate is filled in.

Finalize

Select the self-billing invoice.
Choose Document > Finalize, press ⌘↩ or click Finalize in the inspector.
Confirm Finalize this self-billing invoice? with Finalize.

Once finalized, a self-billing invoice can only be corrected by a cancellation. A draft, on the other hand, can be deleted together with its files using Delete Draft….

Link the payout

Folnaro links a bank transaction with the Payout reference you entered automatically. Otherwise:

In the inspector, under Bank payouts, click Link Payout.
Select one or more open incoming transactions. Transactions with a matching reference come first. Click Link.

The status changes from Payout open to Paid out. Until then the inspector shows what is Not paid out yet. To undo a wrong link, use Remove Link. Choose Payout missing under Show to list every self-billing invoice without a payout.

Cancel a self-billing invoice

Select the finalized self-billing invoice.
In the inspector, enter the Reason for the cancellation. It is required and goes into the history.
Click Cancel Self-Billing Invoice or choose Document > Cancel Self-Billing Invoice…. From the menu without a reason, Folnaro asks for one.
Confirm with Cancel Invoice.

Folnaro creates a finalized cancellation with negative amounts. The self-billing invoice itself stays unchanged and then has the status Canceled. The cancellation counts in the period in which you cancel. Neither expects a payout anymore.

Common problems

Finalizing says “Net and tax do not add up to the gross amount.”: An amount is mistyped or rounded. Compare the three amounts with the statement and correct the one that differs.
The payout is not linked automatically.: The reference on the bank statement differs, or the transaction is not imported yet. Import the statement under Bank and link the payout by hand.
The payout is smaller than the self-billing invoice.: Platforms often deduct fees or pay in a foreign currency. Link the transaction anyway and record the fees as an expense if there is a receipt for them.
Cancel Self-Billing Invoice is dimmed in the inspector.: The reason for the cancellation is missing. Enter it in the inspector, or choose Document > Cancel Self-Billing Invoice… and Folnaro asks for it.