Main Invoice Elements and Where We Use Them
Generally speaking, an invoice is a business document used by businesses and service providers to communicate the total amount of money due after a client purchases goods or services. Invoices come in different types and are used for various purposes. However, the standard invoice usually contains predictable contents, which are necessary for the validity of the document.
The following are the main contents, which are found on a standard invoice.
- Seller Information
- Buyer Information
- Invoice Number
- Dates
- Description of Goods and Services
- Total Amount Due and Tax Information
- Payment Methods
- Comment Section
Seller Information
The information of the seller must be present on an invoice for it to be valid. This information is usually written at the top of an invoice. In most cases, you will find the information within the header of the invoice. Seller’s information usually includes the company logo, company name, contact information, payment account details, and company addresses.
Additionally, the company contact person is also amongst the seller’s information. This information is usually written within the main body of the invoice.
Buyer Information
The buyer information includes a company or individual name, address (billing and mailing address if different), contact details, and contact person if any. An invoice cannot be described as valid if it does not contain buyer information. Additionally, an invoice can contain a customer identification number used by businesses to identify their clients.
Invoice Number
The invoice number is used as an identifier to differentiate one invoice from another. This number is written at the top of the document. Depending on the company policy or the type of technology being used to generate the document, an invoice number could be numeric or alphanumeric. Also, this number may contain special company initials. Additionally, this number allows for easy tracking of payments.
Dates
Having dates within an invoice is crucial for the validity of the document. In essence, you would usually find various dates within a typical invoice. These dates are delivery date, expected payment date, and invoice issuance date. The invoice issuance date is generally written at the top.
Description of Goods and Services
This section captures in detail all the goods or services supplied by a business to its clients. The content under this section is usually tabulated, and each item is described together with its identification number.
Total Amount Due & Tax Information
The total amount due is presented after all additions (tax and shipment), and deductions (refunds and discounts) have been included. Also, the tax identification number of the service provider may be included within the invoice.
Payment Methods
A service provider may include a list of preferred payment methods. These methods could include bank details for transfers. If checks are preferred or other payment methods, this information is captured on the invoice.
Comment/Message Section
A service provider may decide to include a comment or a message. This information could be a simple “thank you” or any special request.
Other useful articles:
- What are Different Types of Invoices
- What Does a Basic Invoice Look Like
- Main Invoice Contents and Where Do We Use Them
- Is Invoice and Bill - the Same Thing
- How Does Electronic Invoicing Work
- How to Calculate Invoices
- Which is of More Importance? Bill, Invoice, or Purchase Order?
- What Basic Information is Needed on Purchase Order?
- Method of Using Purchase Order and Why Purchase Order Is Important
- Invoice Types and Requirements in Brazil
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- Invoice Types and Requirements in England
- How to Keep Track of Invoices and Payments
- GST Invoice Guide