Until now, there are still many business people who do not understand the terms that exist in the world of business and economics, one of which is invoices. In short, an invoice is proof of sales which is very important in the business world. This is because the function of the invoice itself is proof of billing in a transaction carried out by a business person.
If you are a business person who doesn’t understand or doesn’t use invoices in their business, then this article will be very helpful. This article will discuss further the meaning and examples of invoices. So, read this article until the end, mudalovers.
Understanding Invoice
In general, the definition of an invoice is a commercial document which contains transactions between buyers and sellers. In this case, the transactions recorded in the invoice, which can be cash or credit purchase transactions, require an invoice. For example, in credit purchase transactions, the invoice will then contain the terms of the agreement and also provide information regarding available payment methods.
This invoice will then act as proof of sales between the two. Therefore, invoices have a very important role in the business world.
Meanwhile, in general, invoices are also known as receipts, bills or sales invoices. In general, the invoice itself is in the form of a hardcopy which is also accompanied by several copies, so that both the buyer and seller each have a transaction record that can be used as a record.
However, nowadays tax invoices are electronic. However, tax invoices can still be printed in hardcopy form upon request or sent via electronic mail or e-mail to the parties involved in a transaction. The presence of tax invoices in electronic format can be said to make searching and sorting certain transactions on certain dates quite easy.
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Understanding Invoices According to Experts
According to the Big Indonesian Dictionary
According to the Big Indonesian Dictionary, an invoice is a list of goods that must be sent to consumers. Usually, the invoice will contain the name, amount and price that must be paid by the consumer.
According to Sugeng Hariyanto
According to Sugeng, an invoice is a note that contains a description of a list of goods that will be sent to prospective buyers. This invoice record then contains the price of each item. This invoice is intended as a means of collecting payments from buyers. Apart from that, the invoice also contains information on various types of bills that you then want to pay using a credit basis. manage business finances.
According to the Book La Midjan
The book entitled ” Accounting Information System I ” by La Midjan reveals that an invoice is a report that is used as proof of sales of goods or services. The document displays the amount of money that is entitled to be charged to customers who have made a purchase.
According to Adrian Sutedi
According to Adrian Sutedi, an invoice is an important document that will be used in business. This also cannot be separated from the data contained in an invoice. Starting from the amount withdrawn on the money order, also the amount of insurance coverage costs, and customs fees required.
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Invoice Components
After you know the meaning of an invoice, either in general or from experts, the next discussion is the components of the invoice itself. For more details, the following are the components of an invoice.
Company Name or Seller Name
This component consists of the name, logo and company address. Usually it is also added with a telephone number that can be contacted.
Consumer Name which is also included along with the Address
The next component of the invoice is the consumer’s name accompanied by their address. This aims to ensure that recording can be done in more detail.
Invoice Number or Invoice Transaction Number
The invoice number is quite an important component, because it is designed uniquely and has meaning. Usually, each date then indicates the date, buyer or consumer code and so on.
The date the invoice was printed
Next, there is an invoice component in the form of the date the invoice was printed. By having this invoice date, it will be easier for transactors to remember the transactions they have made.
Details of the goods transaction and the nominal amount to be paid
Usually, this nominal then includes the sub-total shopping, discounts (if any) and taxes that must be paid by the buyer.
Full name along with signatures of both parties to the transaction
In this component, you could say that the seller and buyer must sign. This is done with the aim of providing proof and valid agreement from both parties.
Invoice Function
The invoice itself also has several functions. The following is an explanation of the function of an invoice.
- Invoices function as valid evidence when you add transactions to a financial bookkeeping.
- Invoices can also be used as valid reports to then be used as goods receipts along with invoices for taxes.
- Invoices are also used as a storage container for financial or sales records.
- This is because the invoice contains complete information from the buyer’s data to the goods or services purchased.
- Documents that store information regarding the bill amount and payment terms that must be paid by prospective buyers.
- It becomes proof of a valid reference source if the goods or services contained are then sold again to other parties.
- Invoices function to maintain legal certainty between sellers and customers.
- Invoices can also be processed into analytical material which can then be seen through consumer purchasing patterns and determine future promotions.
Invoice Type
After discussing the meaning, components and functions of invoices, the next discussion is the types of invoices.
Regular Invoice
This type of invoice is one of the most popular and frequently used in the business world. This is because ordinary invoices are easier to understand, especially for lay people. In fact, you could say that the appearance of a regular invoice is simpler than other invoices.
In general, this invoice contains various transactions that are not that complicated. Therefore, this type of invoice is known as a simple invoice. Usually, this invoice contains a list of goods and costs that the buyer must pay.
Consular Invoice
Consular invoices can then be said to be more complicated than regular invoices. This cannot be separated from consular invoices which then specifically record various kinds of transactions or trade between countries (export import). Therefore, this invoice requires more detailed data and legality from several related parties, for example representatives from the destination country, consular offices and embassies.
Proforma Invoice
This type of invoice is often referred to as a tentative invoice. This is because the proforma invoice will be given in stages to the buyer according to the goods to be sent. In general, this type of invoice will be replaced by a regular invoice when all orders have been shipped.
Invoice Form
The invoice itself is divided into two forms, namely hardcopy and softcopy.
Hardcopy (Paper)
This form of invoice is the type that you often encounter every day. This type of invoice is generally printed on a piece of paper and functions as legal proof of payment or delivery.
Softcopy (E-Invoice)
Electronic invoice or e-invoice is a type of invoice that is in electronic form and is not printed on paper. Apart from that, this invoice is also often called a softcopy invoice . Even so, the function of an electronic invoice is the same, namely to ensure that the agreement between the two parties is fulfilled.
Example of Invoice
To make it easier to understand invoices, you need to know examples of invoices.
Goods Invoice
A goods invoice is an invoice that contains a list of goods purchased by consumers. Sometimes, the seller also then has to include the price in this invoice. Usually, this invoice is often used by couriers to send goods.
Service Invoice
A service invoice is an example of a billing invoice for services that the provider then provides to the user. For example, for internet users, web hosting and others. Usually, this invoice then contains a list of services that have been provided along with prices and methods of payment.
Tax invoice
A tax invoice is an invoice issued by a tax agency. As the name suggests, this invoice then contains proof of PKP tax collection which has delivered Taxable Goods or delivered Taxable Services.
Sales invoice
A sales invoice is proof that the seller gives to buyers for the goods or services they sell. Usually, this invoice will be given by the seller when the goods have arrived at their destination or buyer’s place.
Purchase Invoice
A purchase invoice is proof that states that the goods and services purchased are in accordance with the wishes of the buyer. This invoice contains details of goods or services as well as the bill price which must then be paid by the consumer or buyer.
Billing Invoice
A billing invoice is an invoice that aims to collect the costs that must be paid by buyers of goods or services.
Generating Invoices in General
The next discussion is about how to make invoices in general. Usually a product that has just been purchased by the buyer will then be invoiced. In this case, invoicing is a process by which the seller creates an invoice and then charges the buyer a fee or money. The following are the general stages of creating an invoice:
- Fill in supplier data then fill in detailed product data
- Enter buyer data and add additional information if any
- Create delivery notes
If you experience difficulties in creating invoices and other financial transaction systems, then there’s no harm in using the many applications that are now available.
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Closing
That’s the discussion about the meaning of invoices and examples of invoices. Hopefully all the discussion above is useful for mudalovers.