An invoice is a legal document that is to be provided by the seller to the buyer about the services that have been provided. The invoice has to include what services have been provided or what was purchased, the price and quantities.
In logistics, the invoice is a crucial part of the supply chain, as it’s used in the transportation, distribution, management and warehousing of goods. Invoices help keep track of shipments, what has been shipped out and that payments are made on time. Invoices are often used in customs if the shipment will be exported out or imported into the European Union.
The seller makes the invoice when the service has been provided or the goods are shipped or sold. Invoices have to contain the following:
- Invoice number;
- Date, when the invoice has been made;
- Sellers information: company name, company legal address, contact details and possibly VAT number;
- Buyer information: company name, legal address, contact details and VAT number;
- Description of the goods/service: a detailed list of product/service that has been sold, quantity, unit price and the final amount. In logistics, instead of goods, it can be transportation costs, warehouse handling costs or other similar services;
- Term of Sales: in invoice, there should be information about the agreed terms of the transaction, when the invoice is due, payment methods and penalties if the payment is made after the due date;
- Shipping information, if goods have been sold: with which carrier is the shipment shipped out, tracking number, delivery address;
- Total amount due: charges of the goods/services, including VAT (if applicable);
- Payment instructions: how the buyer should make the payment and bank account details
- Additional terms, for example, liability disclaimers;
- If the shipment is transported out of the European Union, the Harmonized System Code (HS code);
Here are five reasons why you should consider using a PDF invoice template:
1. Increased Efficiency: Invoice templates save time and reduce errors by automating the billing process. They eliminate the need for manual data entry and streamline the entire billing cycle, making it easier to manage your business operations.
2. Enhanced Customer Experience: Invoice templates provide a seamless customer experience by ensuring that all essential information is readily available to clients. Everything is organized neatly within the template, from product descriptions to pricing tables, making it simple for customers to compare prices and choose the best option.
3. Improved Brand Image: Invoice templates represent your brand well, professionally showcasing your products and services. Clients appreciate receiving high-quality visuals that accurately reflect your company’s offerings.
4. Reduced Costs: Invoice templates enable businesses to generate accurate invoices quickly and easily, eliminating the need for manual labour. As a result, businesses can focus on other critical tasks while the invoice generation process runs smoothly.
5. Compliance Requirements: Many industries require compliance with specific regulations regarding invoicing procedures. Using an invoice template ensures that your business complies with these regulations, providing peace of mind for you and your clients.