What are the types of invoices and how to use them?

The invoice is an accounting and financial document related to a commercial transaction. In fact, it is a detailed list of goods or the provision of services that a company or a self-employed person offers to a client. The invoice informs the amount due, the date of issue, the date of payment, among others.

Discover the types of invoice that exist and the situations in which they can be used. Appvizer will help you find out in this article.

Let's take a closer look at what each of these types of invoices is about.

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1. Ordinary invoice

This is the most frequently used and is what people usually refer to as a standard invoice. In this sense, it serves to record an economic transaction of a series of products or services between a creditor and a debtor.

The ordinary invoice can be complete or simplified, and from this the recapitulative invoice and the rectifying invoice are usually generated.

The following is an example of an ordinary invoice to be delivered:

2. Recapitulative invoice

The recapitulative invoice is an invoice that contains a list of several invoices with the aim of grouping all the operations (by customer or supplier) that have been carried out in a set period of time.

This is implemented for practicality purposes, when throughout the calendar month you have carried out different operations for the same recipient and the recipient prefers to receive the summary of all products or services offered during this period of time.

3. Corrective invoice or credit invoice

The amendment invoice used to be known as a credit invoice and was used within the framework of a commercial operation when it was necessary to make a rectification or claim on an ordinary invoice.

In the event that one or more rectifications are required, the law allows the information to be compiled in a single corrective invoice. The cases that may give rise to a rectification invoice are:

• The need to correct quantities or information,
• non-compliance with legal requirements,
• the recovery of VAT on an unpaid invoice.

4. Proforma invoice

A proforma invoice is a provisional estimate in the form of an invoice. It serves to give an indication of prices and general conditions of sale. This "provisional invoice" is a document sent for information purposes and therefore has no accounting value.

In contrast to the quotation, which is also a summary of the actions to be carried out and for which a charge will be made, the pro forma invoice is legally valid in case of a possible disagreement.

In addition to the basic information, it may name or include:

• The tax that may apply such as VAT or personal income tax,
• detailed details of both the supplier and the potential customer,
• detailed description of the products or services,
• costs associated with transport,
• any other relevant information.

5. Simplified invoice

The simplified invoice is a type of document which, as established by the Tax Agency, is used when:

• A corrective invoice must be issued.
• The amount does not exceed 400 € or 3,000 €, VAT included, in cases such as:
  • Retail sales.
  • Sales or ambulance services or services to the consumer's home.
  • Transport of persons and their luggage.
  • Hotel and restaurant services and dance halls and discotheques.
  • Telephone services provided through telephone booths for public use, or by means of cards which do not allow the identification of the bearer.
  • Hairdressing, beauty parlours, dry-cleaning and laundry services.
  • Use of sports facilities, car parks and toll motorways.
  • Photograph development and services provided by photographic studios and film rental.

This type of invoice replaces the old purchase receipt. In this sense, the receipt has lost its value as an accounting document and proof of expenditure.

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6. Electronic invoice

Finally, we have the electronic invoice, which consists of any type of invoice issued electronically, using software, an Excel spreadsheet or paper that is subsequently digitised.

Within electronic invoices or e-invoices, there are invoices in structured and unstructured formats.

1. Structured format: they can be generated, transmitted and processed automatically by computer systems, thanks to the interpretation of structured computer languages such as: XML, EDIFACT, etc.
2. Unstructured format: these are paper invoices subsequently digitised: PDF, JPEG, PNG, etc. Processing is not automatic.

Thanks to the services offered by invoicing software, this type of document can be made valid through electronic signature functionalities. In addition, the creation and issuing of all types of invoices is simplified thanks to the automation of procedures.

Don't stop invoicing and ensure the success of your business activity at all times!