In the business world there are so many accounting terms that are so commonly heard, one of which is invoices. You need to know, the existence of this invoice plays an important role in recording what goods or services the customer has purchased. In the future, invoices can be used as a reference for calculating the company’s profit and loss. In addition to containing purchase details, Invoicing For Small Businesses are often used as a billing tool between the seller and the buyer.
Invoices are generally made in three copies, one for the buyer, the second is stored by the seller as a billing attachment, and the third is stored in the invoice book. There is no standard format for creating invoices, but there are several components that you must include in an invoice.
There are 3 types of invoices that are commonly used in businesses or companies. The following are the types of invoices and their explanations.
Invoices are commonly found in everyday transactions because of their simple nature. An ordinary invoice generally contains the details of the items purchased/ordered, the quantity, unit price of the goods/services, and the total price to be paid.
A consular invoice is an invoice given when making international transactions. So, if you carry out export-import activities, you must be equipped with this type of invoice. In practice, consular invoices must be ratified and get permission from the country receiving the import and the embassy of the country of origin of the exporter.
If the purchased goods will be delivered in stages, the seller will provide a pro forma invoice as a temporary invoice. After all the ordered/purchased goods are sent in their entirety, the seller will replace the pro forma invoice with a regular invoice.