It is always crucial which types of invoices are used in a company. This depends on their needs and the type of company. Not only is there a specific requirement for every invoice, how it must be created, but you also always have to keep in mind that an invoice is always a tax-relevant document . With the many different types of invoices, it is therefore not surprising that the overview can get lost. So that this doesn’t happen to you, we have put together the most important information about the types of invoices for you in the following article.
What types of invoices are there?
In order to be able to create an invoice without errors or defects , you first have to know what types of invoices there are.
- Invoice type incoming invoice
- Invoice Invoice
- Invoice type credit
- Cash sale invoice type
- Invoice type partial invoice
- Invoice type pro forma invoice
- Invoice type cancellation invoice
This list shows you the different types of invoices. You will find out what is behind each type of invoice in the further course of this article.
The invoice type incoming invoice
An invoice that you receive in the company is referred to as an incoming invoice . For example, this could be an invoice from one of your suppliers . This invoice represents a payment request for you and as an entrepreneur you have to pay this incoming invoice . It is recommended that you check every incoming invoice carefully. This check should be based on the mandatory information & components of an invoice as well as on the items, whether they match the respective delivery note. You should also pay attention to the amounts listed . Are these correct and also provided with the correct tax rate ? This is important because every wrong invoice can lead to problems , also with the tax office. An incoming invoice is an important document that you have to archive in compliance with GoBD for at least ten years.
Digital archiving software can help you save your incoming invoices and all other receipts and documents!
The invoice type outgoing invoice
The outgoing invoice is an invoice that you, as a self-employed, freelancer or other entrepreneur, submit as a claim for the provision of services to your customer . It is possible that an outgoing invoice is created before the services or deliveries have been completed. In this case, you will request advance payment from the customer with your outgoing invoice . An outgoing invoice is recorded in the balance sheet as a customer or a receivable . The outgoing invoice is part of every accounting and is recorded in the outgoing invoice journal.
Special requirements for an outgoing invoice
Special requirements are always placed on an outgoing invoice. This is the case because this type of invoice is always the basis for reminders . It is therefore important that your outgoing invoices always contain the following mandatory information:
- Name and exact address of your company and the recipient of the invoice
- your tax number or sales tax ID
- the exact date of issue of the invoice
- an invoice number that must be consecutive and is only issued once
- the exact amount and type of delivery or the exact type and scope of the service provided
- the time of delivery or provision of the service and the date of payment
- the entire remuneration with tax amount and valid tax rate
- Agreements made in advance with regard to a reduction in pay (e.g. discounts, cash discounts, etc.)
- your bank details such as account number, bank code, etc.
With the outgoing invoice, too, you have to pay attention to a GoBD-compliant retention and retention period. This is also at least ten years for this type of invoice.
The credit note invoice type
The credit is a very special type of invoice. A credit note as an invoice type is always indicated by a positive invoice amount . You must always indicate this type of invoice as a credit note on the statement . A credit always occurs when, for example, several other actors are involved in the fulfillment of an order.
As an example, let’s assume that you place an order with an agency. However, this agency does not carry out the entire job itself, but has it partly carried out by a subcontractor . Once this has been done and the order has been completed, the commissioning agency issues its subcontractor a credit note. He receives this for his work. However, as the client, you will receive a claim from the agency in the form of an outgoing invoice.
The credit from a tax point of view
If you consider a credit from a tax point of view, then it is an invoice that is not created by the provider of the service, but by the recipient of the service . The term is always used in colloquial language when a payment is received, but no claim was initiated in advance. It is important for you that you pay attention to one very important difference. For example, bonuses, reimbursements, or compensation payments are very often referred to as credits. As part of a posting, they are posted as negative amounts, even though they are not credit notes at all from a tax point of view.