we will break down the basics of understanding invoices, from what they are to why they are essential for businesses of all sizes.

Definition of invoice – Until now, there are still many business people who do not understand the terms in the business and economic world, one of which is an invoice. In short, an invoice is a proof of sale that 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 does not understand or has not used invoices in their business, then this article will be very helpful. This article will discuss further about the definition and examples of invoices. So, read this article until the end, Grameds.

Definition of Invoice

In general, the definition of an invoice is a commercial document that contains transactions between buyers and sellers. In this case, the transactions recorded in the invoice, can be in the form of cash or credit purchases, requiring an invoice. For example, in a credit purchase transaction, the invoice will then contain the terms of the agreement and also provide information about the available payment methods.

This invoice will then act as proof of sale between the two. Therefore, invoices have a very important role in the business world.

Meanwhile, in the general public, 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 the seller each have a transaction record that can be used as a record.

However, nowadays tax invoices have an electronic form. Even so, tax invoices can still be printed in hardcopy form according to 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 it quite easy to search and sort for certain transactions on a certain date.

Definition of Invoice According to Experts

According to the Big Indonesian Dictionary

According to the Great Dictionary of the Indonesian Language, an invoice is a list of goods that must be sent to consumers. Usually, an invoice will contain the name, quantity, and price that must be paid by consumers.

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 note then contains the price of each item. The existence of this invoice aims to be a tool for billing buyers. In addition, the invoice also contains information about various bills that then want to be paid 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 used as proof of sales of goods or services. The document displays the amount of money that is entitled to be billed to customers who have made purchases.

According to Adrian Sutedi

According to Adrian Sutedi, an invoice is an important document that will be used in business. This is also inseparable from the data contained in an invoice. Starting from the amount of withdrawals against money orders, also the amount of insurance coverage costs, and customs fees required.

Invoice Components

After you know the definition of an invoice, both in general and from experts, the next discussion is the components of the invoice itself. For more details, here are the components of an invoice.

Company Name or Seller Name

This component consists of the company name, logo and address. Usually also added with a telephone number that can be contacted.

The Consumer’s Name is also Included Together with His/Her Address

The next component of the invoice is the name of the consumer accompanied by his address. This aims to make the recording more detailed.

Invoice Number or Invoice Transaction Number

Invoice number is a very important component, because it is uniquely designed and has meaning. Usually, each date then indicates the date, buyer or consumer code and others.

The Date the Invoice Was Printed

Next, there is an invoice component in the form of the date the invoice was printed. With this invoice date, the transaction actor can more easily remember the transactions that have been made.

Details of the Goods Transaction and the Amount to be Paid

Usually, this amount then includes the sub-total shopping, discounts (if any) and taxes that must be paid by the buyer.

Full Names and Signatures of Both Parties Who Have Made the Transaction

In this component, it can be said that the seller and buyer must sign. This is done as evidence and valid agreement from both parties.

Invoice Function

The invoice itself also has several functions. Here is an explanation of the function of the invoice.

• Invoices serve as valid evidence when you add transactions to your financial records.
• Invoices can also be used as valid reports to be used as receipts for goods along with invoices for taxes.
• Invoices are also used as a storage container for financial or sales archives.
• This is because the invoice contains complete information from the buyer’s data to the goods or services purchased.
• Documents for storing information regarding the amount of the invoice and payment terms that must be paid by prospective buyers.
• It becomes evidence of a valid reference source if the goods or services listed are later resold to other parties.
• Invoices serve to maintain legal certainty between sellers and customers.
• Invoices can also be processed into analysis materials which can then be viewed through consumer purchasing patterns and determine future promotions.

Invoice Types

After discussing the definition, 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 often used in the business world. This is because regular invoices are easier to understand, especially for laypeople. In fact, it can be said that the appearance of a regular invoice is simpler than other invoices.

In general, this invoice contains various transactions that are not so 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 is inseparable from the consular invoice which then specifically records various transactions or trade between countries (exports and imports). Therefore, this invoice requires more detailed data and legality from several related parties, such as 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 shipped. In general, this type of invoice will be replaced with a regular invoice when all orders have been shipped.

Invoice Form

he 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 serves 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. In addition, this invoice is also often referred to as a softcopy invoice . Even so, the function of the electronic invoice is the same, namely to maintain the agreement between the two parties fulfilled.

Invoice Example

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 the consumer. Sometimes, the seller must also include the price in this invoice. Usually, this invoice is often used by couriers to deliver their goods.

Service Invoice

A service invoice is an example of a billing invoice for services that have been provided by the provider 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 the price and method of payment.

Tax invoice

A tax invoice is an invoice issued by a tax agency. As the name implies, this invoice then contains evidence of tax collection by PKP who have made a delivery of Taxable Goods or a delivery to Taxable Services.

Sales invoice

A sales invoice is a proof that a 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 the buyer’s place.

Purchase Invoice

Purchase invoice is a proof stating that the goods and services purchased are in accordance with the wishes of the buyers. This invoice contains details of the goods or services and 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 fees that must be paid by buyers, whether for goods or services.

General Invoice Creation

The next discussion is about how to make an invoice in general. Usually a product that has just been purchased by a buyer will then be invoiced. In this case, invoicing is a process of a seller who creates an invoice to then charge a certain amount of money or fees to the buyer. The following are the stages of making an invoice in general:

• Fill in the supplier data then fill in the detailed product data
• Enter buyer data and add additional information if any.
• Create a delivery note

If you have difficulty in creating an invoice and other financial transaction systems, then there is nothing wrong with using an application, of which there are now many available.