In order for businesses and individuals who do freelance work to bill their clients, an invoice is essential. Generating an invoice requires a template and relevant information to able to create a complete invoice. Providing an invoice to your client ensures that you get paid for the services rendered.
The main use of invoice is to prevent any delays in getting paid. This allows businesses to send out a list of goods and services to their clients for the purpose of informing them of the total amount needed to be paid, as well as the payment due date. Read more about invoices below.
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How to Create a Commercial Invoice
A commercial invoice is a type of document used in importing and exporting goods and products. Although a commercial invoice doesn’t follow a standard format, it has to contain certain information. When creating your own commercial invoice, refer to the steps below.
- The first thing to do before you create your commercial invoice is to obtain a template. You can use the templates available on this page to help you in formatting your invoice.
- Write the information of both the seller and the buyer. Include the names, contact information, addresses, and tax identification numbers.
- Your invoice should also contain the shipment details such as the country of origin, the invoice number, and the reason for export.
- Write a list of the items and products being shipped. Specify each product including the quantity of each.
- Write the unit price, taxes, and the total value of the products being exported. Also indicate the type of currency used in the invoice.
- Other shipment information such as the weight, the discounts, number of packages, insurance costs, etc., are also necessary.
- Sign your invoice and keep a personal copy of it.
In addition, professional invoice templates are also available should you need that type of invoice specifically.
Billing Invoice Form
University Department Billing Invoice
Sample Billing Invoice
Types of Invoice
There are various types of invoices used for billing your customers. For example, a contractor invoice is used by independent contractors when billing their clients. A business may use different invoices depending on the transaction that is being made.
- Standard invoice – a standard invoice is a basic invoice used in many business transactions. Standard invoice templates consist of information such as an invoice number, name of seller and client, the items purchased, and the total amount to be paid.
- Commercial invoice – a commercial invoice is a type of invoice that is not commonly used in the purchase of goods in stores. However, a commercial invoice is necessary in foreign trade. When a product is imported from another country, a commercial invoice is used to declare the value of the goods and products being shipped.
- Progress invoice – a progress invoice is commonly used in the construction industry where the progress usually spans over a specific period of time.
- Utility invoice – refers to the type of invoice used in billing utilities such as the telephone, electric, cable, gas, etc.
- Pro forma invoice – this type of invoice is not considered a true invoice. It is mainly used to inform the buyer of the cost of the purchased products.
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