Invoice or also known as invoice is a document that contains proof of purchase. The document contains details about the purchase of goods, such as price per item, number of items, number of items, until the time of purchase. In addition to the purchase details, the invoice can also be used as a seller’s bill to the buyer. Billing and payment on invoices will usually be done in accordance with the agreement on the Purchase Order (PO). Invoice is important in every business, both small businesses and large businesses. Even in service businesses, there are invoices known as receipts or notices. Know more clearly about the function of the invoice, and what components of the invoice you need to pay attention to.
Components in Invoice
Making an invoice or invoice must contain several components as below:
The purpose of billing to consumers or customers.
The collector’s identity, that is the company or institution that issued the invoice.
Invoice number or order letter number associated with the invoice made.
List of items purchased by consumers.
The amount of tax or the amount of payment that must be paid.
The purpose of payment, namely in the form of details of the bank account and company.
As a document that is owned by a business company, of course invoice has its own function, namely:
As a document that contains details of the purchase, the main function of the invoice is to bill consumers or customers to make payments immediately.
Invoice can be used as a source of information about goods and services purchased by consumers or customers.
The invoice also contains information about the calculation of the purchase and how the payment was made. Payment or billing methods are usually carried out in accordance with POs that have been previously agreed upon.
With invoices, business financial accounting can be done more easily. This will make it easier for business people to monitor business developments that are being pioneered.
Can be used as a reference if you want to resell items that have been purchased. Even in some cases, invoices can be used as a reference if there is a mismatch between billing and shipping goods.
Types of Invoice
There are many types of invoices commonly used in businesses or companies. Some types of invoices include:
Ordinary invoice, is the most common type of invoice and is most often used in buying and selling. The use of invoices of this type is usually used on simple purchase transactions. This invoice contains simple information about the transaction such as item details, quantity, price and total payment.
Consular invoice, which is a special invoice used for international transactions, such as export-import activities. In addition, consular invoices must also be validated and obtain permission from the country or country that received the import and embassy in the country of origin of the exporter.
Proforma invoice, is an invoice given to the buyer if the goods are sent in stages. Therefore, this invoice is temporary. Because if the goods purchased have been shipped as a whole, the proforma invoice will be replaced with an ordinary type of invoice.
How to make an invoice
Here are some things that must be considered in making an invoice:
Invoice must be made according to the goods that have been sold or received by consumers. This is to minimize the existence of rejection transactions made by consumers when the goods that have been sent have been received. Therefore, the invoice is made after the delivery process is signed by the consumer.
One-time transactions made by consumers can be written in one transaction, and can also be written in stages. Some companies set for each payment for each transaction that occurs, then the payment will be made after the order process has been done.
If there are several transactions, the invoice must be made as a whole. In this case, the detailed recording related to the purchase details are needed both for consumers and sellers.
Habit in making invoices will help business people to monitor accounts receivable books. Because with an invoice, business people can monitor company receivables. In internal procedures, accounting system control manual method is highly recommended to make invoices with serial number printed. But lately many business people who make invoices or invoices with a computerized system. The advantage of computerized systems is that when printing serial numbers, double sequence number printing will not occur.