What is a payment invoice?

A payment invoice is a commercial document issued by the seller to the buyer and containing a list of goods and/or services, their formal features, quantity and price, delivery terms, taxes included in the price and information about the sender and recipient.

The payment invoice is an important element of internal control and accounting audit.

A “good payment invoice” is a document that protects your business from mistakes and risks.

The “Right Billing Tools” will help you simplify your billing process, improve your cash flow, and even simplify accounting.

Companies must deliver invoices to demand payment. A payment invoice is an agreement showing the agreement of both parties to the specified price and payment terms.

Assigning invoices for payment

Record keeping: The most important advantage of a payment invoice is the ability to keep legal records of the sale. This allows you to find out when the product was sold, who bought it and who released it.

Payment tracking: A payment invoice is an invaluable accounting tool. This helps both the seller and the buyer keep track of their payments and amounts due.

Business analytics: Bill analysis can help companies gather information about their customers’ buying patterns and identify trends, popular products, peak shopping periods, and more. This helps to develop effective marketing strategies.

Electronic invoice for payment

An electronic payment invoice is a digital payment invoice that is transferred from one information system to another, for example, from the accounting program of the seller/supplier enterprise to the accounting program of the counter-party (buyer/payer). The supplier and recipient can be either a commercial company or a government agency/enterprise. Electronic Data Interchange (EDI) standards, such as the United Nations EDIFACT standard, include guidelines for encoding messages for electronic invoices

Advantages: Saving time, reducing company costs, reducing the number of errors when entering data into the accounting program.

The goal is to minimize the amount of work and the number of staff involved in creating an invoice. Service e-Cont.md does most of the work for people. In addition, there is no need to print out the invoice, send it by E-mail (or in some other way), enter it into the accounting program.

From a technical point of view, electronic invoices for payment is the turnover (sending, receiving and storing) of invoices between a supplier and a buyer in an integrated electronic format without using paper invoices as original documents.

What is a true (full-fledged) electronic account?

Electronic invoicing consists in the fact that they must contain data from the seller/supplier in a format that can be entered (integrated) into the buyer’s Accounting System without the need to enter any data from the administrator or the buyer’s accounting department.

Since this allows you to use multiple formats, it is useful to apply the following recommendations:

A true electronic account

  • Structured account data issued in electronic data Interchange (EDI) or XML formats;
  • Structured data of invoices issued using standard web forms on the Internet;

An untrue electronic account

  • Unstructured invoice data in PDF, Microsoft Word or Open Document formats;
  • Scanned paper invoices for payment;

Although significant cost and time savings can be achieved by eliminating paper and manual processing of invoices, the real advantages of electronic billing are the level of integration between the supplier of goods or service provider and the buyer, as well as between billing software and other business systems.