An invoice is a detailed statement that itemises a transaction between a seller and buyer, serving not only as proof of sale but also as a formal demand for payment for the goods or services provided.
Beyond a simple Word document, a legally valid invoice must include:
- Issue date
- A sequential invoice number pre-assigned by a system
- Seller’s legal business name and corporate identification number (CIN)
- Buyer’s full details, including name and address
- Detailed description of products or services supplied
- Quantity or extent of the products or services provided
- Time and place of supply
- Total payment due,
- Payment deadline
Thankfully, contemporary invoicing applications like Conta automate these aspects, ensuring you fulfill all the requisite criteria by simply inputting the necessary data.
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Different types of invoices
Most business invoices are credit invoices, meaning payment follows the delivery of goods or services. Conversely, instant payment transactions require a cash invoice, which adheres to the same information requirements.
Upon discovering discrepancies or needing to issue a refund, a “credit invoice” must be generated to negate or alter the original invoice.