Bewildered about creating payment invoices? Here are 7 Tips to Make Them

Surely some of you are already familiar with the term payment invoice, right? But what if suddenly you need to create a payment invoice? It feels like you need to do some research or at least find out what it looks like. 

Okay, you're in the right article! Because we've prepared tips and examples of payment invoices specifically for you who are confused.

If you're in a business context, you can't escape from financial aspects and business transactions. Certainly, one important thing to know is the term invoice, or what we commonly know in Indonesian as "faktur."

You should also know that faktur itself has the same meaning as an invoice. As quoted through the Big Indonesian Dictionary (KBBI), faktur is a document containing a list of shipped goods complete with descriptions of names, quantities, and prices to be paid. 

Faktur is also an important part of the business process, not only in the finance department but also in other functions such as marketing and archiving.

Simply put, an invoice is a document used by the seller to demand payment from the buyer for products or services purchased, with details of the goods or services provided.

Generally, the seller will complete the invoice with transaction details, such as the item name, specifications, unit price, quantity purchased, and the total amount to be paid by the buyer. Additionally, the purchase date is also important information that must be included in the document.

Invoices are usually prepared and printed by the seller in three copies (triplicates), each with its role and function. The first copy serves as evidence of payment settled by the company. The second copy is used for records in the sales department. Meanwhile, the third copy or the last copy functions as a report in the finance department.

Each copy also serves as evidence of the transaction, especially if the transaction is done on credit. Besides serving as proof of payment, the invoice also serves as a billing document from the seller to the buyer, which must be paid by the buyer. Therefore, it is important that before the invoice is provided by the seller, both parties must agree on the transaction that occurred and record it in the purchase document.

Read also: Example Purchase Order & Differences with Invoice

But you should also know that in some situations, invoices can also be in the form of notices or receipts. Moreover, invoices can also be used as collateral when applying for loans. Therefore, it is important to check all forms of documents that serve as invoices in the company to ensure that performance measurement can be done more meticulously and accurately.

What is the importance of payment invoices in business transactions?

Source: Freepik.com

Invoices generally serve as evidence of purchases made by buyers. However, there are several other things you should know; in business transactions, invoices have other roles or functions. Such as:

• As information about products/services purchased by consumers to the seller.
• As information regarding the amount of bills and payment terms that must be made by consumers.
• As valid proof if the products/services listed are resold by another party.
• Can be valid evidence when adding transactions to financial bookkeeping.
• If there are errors in billing or product delivery, the invoice can be used as evidence.
• As collateral for applying for capital loans.

7 Tips for Making Business Transaction Invoices

Source: Freepik.com

After understanding the importance of invoices for both sellers and buyers, the next step is to understand how to create the right invoice document. Because invoices also play a very important role in business transactions, their preparation must be done carefully and meticulously.

Here are some things to understand and pay attention to when creating invoices for business transactions:

1. Detailed and Complete Information

So after the transaction agreement is approved by both parties, the invoice document must also be prepared in detail and complete regarding shipping information. 

If invoice preparation is not following the agreement, the likelihood of the buyer canceling the transaction becomes greater because the information listed is incomplete, thus causing problems in the future.

2. Buyer and Seller Identities

The identities of the buyer and seller must be included in the invoice, including the complete profiles of the companies or institutions sending the ordered goods or services. This is to reduce the risk of delivery errors and ensure the accountability of invoices for future use.

3. Purchase Order Number

The purchase order number or invoice number must also be included in the document to be given to the consumer.

4. Pay Attention to the Type of Transaction

You also have to pay attention to the type of transaction to be carried out. If the transaction and delivery of goods are carried out gradually, the seller should provide a proforma invoice (invoice provided by the supplier before the delivery of goods or services). 

However, if the transaction can be completed in one shipment or involves cross-border transactions, then the type of invoice created is a standard or consular invoice.

5. Include Product or Service Details

The information listed must include accurate and complete details of the products or services purchased. These details can include the item name, quantity, and unit price. 

Because inaccuracies in invoice information can result in the invoice not functioning properly when needed in the future.

6. Billing Amount

You need to include the amount to be paid by the consumer, including the amount of tax charged. Therefore, consumers can immediately pay the purchase bill and complete the transaction accurately.

As a document that provides details of purchasing goods or services, invoices play a significant role in business activities. Its various functions greatly assist in optimizing transaction processes and recording in the company's financial statements. 

So you need to check every transaction using an invoice according to your needs.

7. Given a Purchase Order

Invoices should also be provided when the buyer has signed a purchase order or when all goods have been delivered by the seller.

Example of Payment Invoices

After you understand the tips for creating payment invoices, you also need to know examples or formats of invoices. Here are 3 invoice examples that you can use as references. Let's see!

Payment Invoice for Goods

Source: Paper.id

This payment invoice for goods is generally used by stores that need products or tools and materials. For example, photocopy places, clothing, and fashion.

Travel Payment Invoice

Source: Midtrans

This payment invoice is usually used by travel agencies or travel agents to bill for tour packages travel ticket sales and so on.

Service Payment Invoice

Source: Rukita

Finally, there is a type of payment invoice commonly used by people who have businesses in the service sector, such as designers, photographers, consultants, and so on.

Those are the 7 reasons why payment invoices are important when conducting business transactions and 3 examples of payment invoices that you need to know. 

Oh yes, you should also know that payment invoices also play a crucial role in maintaining the smoothness and accuracy of payments and financial records. 

So by understanding the importance of this invoice, companies can optimize efficiency and regularity in their business operations, maintain good relationships with customers, and enhance credibility in the business world.