A pro forma invoice is a binding agreement, although the terms of sale may change. There are many types of invoices that vary slightly by industry and country (i.e. commercial invoices contain the weight of the product and the dimensions to get goods through customs). Traditionally, invoices are paper documents, which are now often sent electronically. If you don`t know where to start, first read our guide to creating an invoice. Accountants and lawyers like in-depth discussions about invoices and orders, as both documents contain figures and legal implications. But there are many misconceptions about invoices that business owners need to understand before they start pointing out their invoices as legal documents. The question of whether an invoice is a legal document or not is a document that always has people on several pages, but there is really only one correct answer. To start this discussion, let`s see what a bill really is. An invoice is a list of products or services that a lender makes available to a debtor.
The invoice also shows other items of the booking, such as VAT, shipping, handling and other charges. At the end of the invoice will be a total sum of the costs incurred by the customer for the products or services that have been purchased. Most companies also have a lot of legal language about their invoices, company collection rules and phone numbers that a customer can use to contact the company to make payment terms. The invoice also shows all acceptable payment options from which the debitor must choose. If a debitor has used an order to make a reservation, the invoice also bears that order number. Most invoices have their own identification number and all invoices are dated. The most important thing you need to remember is that the date on the invoice is the date the invoice was generated. This is not always the date of the transaction. This becomes important when it comes to determining when the bill is actually due for customers with credit terms.
Is an invoice a legal document? In itself, an invoice is not a legally binding agreement. If an invoice was itself a legally binding document, lenders could create false invoices and then force their customers to pay them. If both parties do not approve the bill, it is not legally binding. The poor legal situation of an invoice is the reason why sellers require customer signatures or any other form of mandatory acceptance before sending a product. Accountability works one way or the other. Customers could order products and then deny that they have already placed the order. This practice could become extremely expensive for suppliers who sell consumables. An invoice is a time-stamped business document that breaks down and records a transaction between a buyer and a seller. When goods or services have been purchased on credit, the invoice usually indicates the terms of the agreement and contains information on available payment methods. Some invoices are no longer paper-based, but are transmitted electronically via the Internet. It is always common for electronic transfers or invoices to be printed to keep paper statements.