There is no dearth of industry verticals in today’s time. All kinds of businesses carry on business transactions on a daily basis. These transactions are carried out using business invoices. Invoicing varies from industry to industry for sending out precise invoices for the goods and services sold.
These are different from normal invoices used by businesses for regular transactions. This type of an invoice is specific to foreign trade. The invoice is raised when goods are being shipped from one country to the other. This invoice acts as a proof of the transaction for custom authorities. This kind of invoice also carries invoice details like the contact addresses of the buyer and the seller. One has to also add the complete description and pricing of the goods being sold. A commercial invoice must have the signature of the authorized person carrying out the transaction and the country from which the goods are being dispatched.
Invoices Meant for utilities are called utility invoices. We all use utility services like water, electricity and mobile phone etc. This invoice shows the due amount for the services rendered for the particular period. This is the amount that is payable to the service provider of the utility. It also mentions the date on which the invoice becomes due. It clearly mentions the late fee that is chargeable in case the invoice is not cleared on or before the due date. The pricing of services is usually fixed or varies according to the slabs provided by the service provider. It also includes the details of the payments made for the previous invoice.
Value/Milestone Based Invoice
This is an invoice that is based on the project work done/milestone achieved. This kind on invoice is devoid of the time taken or the hours worked. If a certain part of the project is completed or a certain target is achieved, then this is the kind of invoice that is raised. This kind of invoice is largely dependent on the type of expectations the client has from the project. The billing is done according to the terms and conditions mentioned in the project. The billing is done according to the terms and conditions mentioned in the project contract.
This is a basic invoice, this used for different kinds of business transactions. While creating an invoice all the details of the products/services being sold, are clearly mentioned. One must also mention the terms and conditions of the invoice along with the reference of the purchase order number. Adding the invoice number and due date are also essential. The basic invoice is the most commonly used invoice for all kinds of business verticals.
Time Billing Invoice
This kind of an invoice is most commonly used by freelancers and other service providers like lawyers, photographers, consultants and digital agencies. Detailed reports of the hours worked are attached with the invoice. These invoices carry the hourly rate along with the nature of the service provided.
Invoices for which a part of the payment has been made and part of it is yet to be made are called pending invoices. A pending invoice shows that amount which is yet to be paid by the client.
Recurring Billing Invoice
There some goods and services which are sold in fixed quantity on a periodic basis. These include services of digital agencies or publications who charge for monthly retainers and subscriptions. Services like house rentals are also included in these kind of services.
This is an invoice issued by the vendor for adjustment of pricing in case of a last minute discount. A credit invoice is issued for the difference in the pricing of the goods added to the invoice and the price actually charged during settlement. This kind of an invoice can also be issued when some goods are returned by the client.
A debit invoice is the reverse of a credit invoice and is issued by the client while returning any goods to the supplier.
Using and online invoicing solution like Invoicera is useful for sending out all kinds of business invoices online, with ease.
Know more about invoicing workflow management for small businesses from this post.