Invoice for payment - the first step towards successful cooperation
The invoice for payment is a document transmitted by the supplier of goods and services to its customers in order for them to make a payment. The legislation does not provide for the obligation of an organization to issue invoices to counterparties. Payment in some cases is made on the basis of the contract. However, the use of an account greatly simplifies the task of the accounting staff of both the buyer and the supplier, so this document is used in the work of most companies in various fields of activity.
The essence of the document
The invoice for payment is intended for the buyer to transfer money to the account of the supplier. The legislation provides for an extensive list of rules that organizations must follow when conducting cash payments between themselves. Therefore, non-cash payment for goods and services is much more popular.After signing the contract and agreeing on all the terms of the transaction, the supplier issues an invoice to the counterparty. In one transaction, the buyer may receive several documents depending on the conditions of delivery of goods and the calculation for them. If by agreement of the parties a partial prepayment is provided, then invoicing for payment can be presented in two versions:
- The supplier sends the buyer an invoice indicating the total amount of the contract. The Counterparty independently determines the amount of funds that must be transferred to the supplier’s current account on the basis of the terms of the contract. Prepayments are usually expressed as a percentage of the total value of the product or service.
- The supplier independently calculates the prepayment amount and issues the corresponding invoice to the buyer. Then, when under the terms of the contract it is time to make the final payment, a new document is issued for the remainder.
Benefits of using
The invoice for payment greatly simplifies the process of mutual settlements between the buyer and the supplier. If all the details of the recipient of funds are correctly indicated in the document, then the risk of errors in the preparation by the employee of the payment receipt accounting is significantly reduced.In the case of payment under the contract, especially if this is not the first payment, accountants usually do not request current details from the counterparty. Although if a long-term contract is concluded, they may change more than once. Suppliers also do not always promptly notify their customers about changes in settlement accounts, the name of the organization and other data.
Details of the beneficiary
Supplier details need to pay special attention. The timeliness of payment and the absence of conflict situations with counterparties depend on the correctness of their entry into the document. Usually, the invoice for payment contains the following details of the recipient of funds required for the relevant financial transactions:
- The name of the organization of the recipient of funds.
- INN (sometimes the PPC of the organization is indicated next to it, although this data is not mandatory).
- The account number of the recipient of funds.
- The name of the bank where the supplier’s account is open.
- BIC Bank.
- Correspondent account of the bank.
These details are necessary for carrying out in the bank a payment order made by the buyer.Their list does not include the address of the organization and its telephone number. However, it is better to issue an invoice with this data. Especially needed phone organization. It is better to specify the number directly of the person who bills. After all, the contract between the buyer and the supplier may be in the supply department, and payment is made by the accounting department. In this case, her employee may have various issues in the preparation of a payment order, which can be easily solved by telephone.
Details of the buyer
In the invoice it is not necessary to indicate the full details of the buyer. Most accounting programs provide an indication of the name of the organization, sometimes its TIN and telephone number. This is quite enough, because the bill is issued after the negotiations and the conclusion of the contract, so the buyer will not doubt that the specified document is intended for him.
The tabular part of the invoice can be filled in various ways. The use of one or another depends on the terms of the agreement, agreements between the supplier and the buyer, and the nature of the delivery.The most common examples of filling out a tabular part of an account are:
- The table reflects the full list of goods and services that must be supplied and provided to the buyer. At the same time, their name, quantity, price per unit and the total amount of the entire supply shall be indicated. Such a document is practically a preliminary version of the consignment note and the certificate of completion, which is provided by the supplier to the buyer after the fulfillment of the contract conditions. This option is convenient in that the buyer can immediately see how these or other products will be called in official accounting documents.
- In the tabular part make a link to the contract and payment terms. In this case, the supplier can specify both the total amount of the contract, and independently calculate the percentage of the prepayment. This option is convenient for long-term cooperation, when the buyer makes periodic prepayments, and then partial deliveries are made. In addition, it is sometimes impossible to immediately indicate in the invoice the name of all units of products, since the terms of the contract may stipulate the delivery of a single product of the same type, at the discretion of the supplier, from a certain range that is in stock.Regardless of which option of filling the tabular part is chosen, it is necessary to indicate whether VAT is included in the invoice amount. This information is necessary for the correct execution of the payment order. In addition, if the supplier allocates VAT in the document, the buyer after the operation has the right to require him to issue an invoice.
Terms of delivery and receipt
Some accounts also contain information about the conditions of delivery of goods and the rules for their receipt. The document makes a note about the time when the order can be picked up. It is indicated usually in working days. Mark also what documents will be needed upon receipt of the goods in the event of self-delivery. Usually, a power of attorney issued to the authorized person by the purchasing organization is sufficient.
The bill for payment is usually signed by the person who makes it up. If it is not done by the manager or the chief accountant, then the position of the authorized person and the reference to the order or power of attorney are indicated, which gives him the rights of invoicing and their signatures. The invoice is also stamped by the supplier.
Storage of invoices for payment
Charge invoices issued to customers are collected and stitched in chronological order. They must remain in the archives of the company for five years. This period is provided for by the general rules of storage of accounting documents. During this time, various disputes may arise between the supplier and the buyer, which can be resolved by examining the invoice for payment. In any case, the document must be maintained until the completion of all works under the contract in accordance with which it was issued.