Types of Invoicing In Use in Organization and Its Importance

March 11, 2021

To know what an invoice is? You must know its importance, it is a document in which a transaction of purchase, sale, or provision of a service is ratified. It is categorized as a negotiable document and is part of the accounting documents.

You can use online invoices for your organization to get payment from your clients, create beautiful online invoices with the help of sample invoice template within minutes.

Some of the types of the invoice are:

The ordinary invoice

It is the one most used invoice in everyday transactions. It specifies the sale of a product or the provision of a service and, in Australia, the full format is used, in which all the data of the sale operation is recorded.

The revised invoice

As its word indicates, it serves to rectify information from a previous invoice. The concept of this quote is detailed about what the correction is and where the error was made to generate accurate information in future balance sheets.

The recapitulative invoice

This type summarizes several invoices; However, it is necessary to cancel previous invoices; Furthermore, they cannot exceed a recapitulation of one month and must describe in detail all the transactions that were made. This type of invoice is significant because it supports large transactions in a single document. Keep in mind that the different invoices must be issued to the same company or person.

The electronic invoice

This type of Invoicing is being implemented in Australia. However, several countries have already developed it to optimize tax processes and have a better administration of the company’s products and services. 

The proforma invoice

The proforma invoice has a unique structure and could be characterized as a non-accounting informative document. Although it provides information on how much a product or service could cost, it does not constitute a book value; In other words, it has no value for financial purposes; In other words, the proforma invoice ranges from a commercial proposal, a draft invoice, or a sample offer.

When proforma invoice used?

There are no specific times or processes this type of invoice is used, it can be used at different times; What is certain is that when customers notice a long-term payment of 30, 60 days or more, a proforma invoice is used as a document that informs about the product or service to be purchased; however, this does not mean that the invoice commits a payment made or goods delivered. As mentioned above, it is an informational accounting document.

How is the invoice posted?

For the accountant, it is the document that justifies the purchase, and the payment commitment is recorded. In some companies, it is spread using a duplicate, of which the buyer has the original version. The invoice is the main document with which operations are concluded.

Some legal requirements that the invoice must contain are:

  • The title must bear its label as “bill of sale.”
  • It would help if you had the surname and first name, business name, and Company number, id of the person.
  • Surname and names of the person who acquires the service and discrimination
  • Consecutive numbering
  • Due date
  • Description of the items or services
  • Company name and Nit of the invoice printer.
  • Sales tax withholding status; In other words, it must specify whether it is a standard system or a large taxpayer.

When the taxpayer uses a billing system or software, it is assumed that the requirements are preset.

Also, if the billing is by the cash register, the daily or periodic numbering is authorized, as long as it does not alter the accounting.

 

How to Make Online Invoices?

Choose your billing Template.

Give your invoices a professional look, you can choose different templates; additionally, you can attach videos and photos of your products to your online invoices.

Convert your quote into an Invoice

Save time on your billing! Once your client approves the quote, you have to click, and it magically turns into an invoice.

Online Bill Pay

Offer to your customers; with online billing they will be able to pay you online and from anywhere; the invoice includes a payment button, so the collection will no longer be a problem.

Billing report

Know the history of all your invoices online, and identify your best sellers with your invoices’ reports.

Thanks for reading

 

 

 

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