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What is an invoice?
An invoice, or bill for payment, is an international document that the seller issues to the buyer as a request for payment. This document contains a detailed list of services, their characteristics, the terms of the transaction, and information about its participants. An invoice serves as confirmation that the goods or services have already been delivered to the buyer, and they are obligated to make payment according to the specified terms.
To receive payment for services from foreign clients, it is not enough to simply issue a standard bill. According to international standards, an invoice must be issued. However, it is worth noting that an invoice is not required for all foreign economic transactions. For example, between the countries of the Eurasian Economic Union (EAEU), ordinary bills and acts of completed work can be used, which eliminates the need for invoices.
Types of invoices
In international practice, there are two main types of invoices: commercial invoice and pro forma invoice. Let's examine each of them in more detail.
Commercial invoice
A commercial invoice, or invoice-bill, is a shipping document that serves as the basis for making payment. It is necessary for currency control, as it confirms the legality of receiving funds from abroad. When money is received from a foreign client, the bank temporarily blocks these funds in a transit account, giving the company 15 days to confirm the transaction. The package of required documents depends on the specific bank and the amount of the transaction. For example, for amounts up to 200 thousand rubles, it is sufficient to fill out an electronic report and provide the invoice.
Pro forma invoice
A pro forma invoice is a preliminary bill issued by the seller when the terms of the transaction have not yet been agreed upon. This document is necessary if the service is provided before all terms are finally approved or if the client makes a prepayment. For example, if a client wants to book a spot with a web designer, they can transfer a prepayment based on the pro forma invoice, even if the details of the transaction have not yet been agreed upon. Unlike a commercial invoice, a pro forma does not contain clear conditions and does not require stating final deadlines and amounts.
How to properly fill out an invoice
For an invoice to be accepted by the bank and for the funds to be transferred to the company's account, it must be filled out correctly. Late submission or ignoring the invoice can lead to a fine of up to 100% of the transaction amount for violating currency legislation. Although there is no strict form for an invoice, the document must include the following information:
- Date of issuance and number (optional).
- Information about the client: full name, company name, address.
- Subject of the invoice and quantity of services.
- Detailed description of each item.
- Price and total amount of the transaction with currency indicated.
- Bank account details of the performer and payment deadline.
- Method of transferring the subject of the transaction.
- Signature of the person issuing the invoice.
- Stamp or seal (if possible).
The document should be prepared in the client's language, most often in English. It is recommended to prepare two copies—one for each party. A translation into Russian may also be required to confirm the transaction.
Sample invoice for services
It is easy to find examples of invoices online and download ready-made templates. For instance, there are templates in Excel format that can help automatically calculate the total payment amount based on the specified hours and rates. However, the most convenient solution is to use special invoice generators, such as Zoho Invoice, where it is enough to enter the necessary data, and the system will automatically generate the document.