What are the different types of invoice? Learn how to tell them apart
What are the different types of invoice?
If you want to invoice your customers, find out about the different types of invoice and their specific features, so you know when to use them.
Whether it's an advance invoice, credit note invoice, must-have invoice or proforma invoice, this article, co-written with Charlène Serayet, Managing Director of Dasmind and an expert in administrative management, gives an overview of the different types of invoice that exist. It also includes a sample invoice for you to download, so you can do even better than the professionals!
Definition of an invoice
What is a customer or supplier invoice? In a few words, it's an accounting and commercial document linked to a commercial action, listing the services and goods sold.
The different types of invoice
Down-payment invoices
A progress invoice is used when part of the final amount is paid before a good or service is delivered.
This advance payment must appear on the final invoice when it is issued.
The credit invoice
The credit note invoice is used to cancel or correct an invoice that has already been issued.
The document is used to recognise the debt owed to a customer and to correct the amounts recorded in the company's accounts.
The must invoice
The must invoice is simply the document certifying the seller's claim on the buyer following a sales transaction, i.e. the amount that the buyer owes to the seller.
Interim invoicing
This is a provisional or advance invoice sent to the customer several times a year to spread the payment of annual consumption or a large sum.
Adjustment bill
A regularisation bill is generally issued when a meter reading is taken or when consumption exceeds the provisions for charges.
Closing invoice
The final invoice ends a consumption period and closes a contract between a service provider or supplier and a customer.
Pro forma invoice
A pro forma invoice is a provisional estimate in the form of an invoice. It is used to give an indication of prices and general terms and conditions of sale. This "provisional invoice" is a document sent for information purposes, but has no legal or accounting value.
The actual invoice
This is the definitive document issued once the service has been provided or the goods delivered.
What does an invoice look like?
What information is required on an invoice?
Invoices are more than just documents: they also have legal value.
To have official status, it must comply with certain requirements. It must include the word "invoice" to be identified as such, and a certain number of mandatory legal references.
A word from the expert
It is important to note that the invoice is an official document with legal force. It must therefore include a certain number of compulsory details, such as :
- the date of issue
- the invoice number
- the customer's name and address
- the name and address of the seller,
- the description of the products or services sold
- the unit price and quantity,
- the total amount of the invoice,
- the VAT rate,
- the terms of payment.
Invoice management mistakes to avoid
To avoid financial errors and the risk of non-compliance, it is essential to manage your invoices properly. Here are a few failings to avoid in this crucial management:
- ❌ Forgetting to check the accuracy of invoice information, such as amounts, dates, VAT numbers, etc. ;
- ❌ Neglecting to validate invoices with suppliers to ensure they are authentic and comply with current regulations; and
- ❌ Failing to meet payment deadlines or invoice deadlines, which can lead to late fees or disputes; and
- ❌ Using insecure invoice storage and archiving methods, which may result in the loss of important documents or compliance issues; and
- ❌ Failing to retain copies of invoices for the legally required period, which can lead to problems in the event of a tax audit or subsequent disputes.
Example of a standard invoice
Would you like to use a ready-to-use document? You can download two invoice templates, one with VAT and one without, free of charge:
Invoicing in full compliance
Since 1 January 2018, VAT-registered businesses have been required by law to use VAT fraud-proof software to process their invoices. Here is a selection of tools to make invoicing simple and compliant:
- ClicFacture: the online invoicing tool for the self-employed, craftsmen and self-employed entrepreneurs.
- Henrri: free invoicing software for very small businesses.
- EBP Gestion Commerciale: the tool that automates the production of invoices customised to the image of your VSE or SME.
- Factomos: the electronic invoicing solution for SMEs.
- QuickBooks Invoicing: the leading quotation and invoicing software for small businesses.
- Sage 50 Compta & Facturation: the complete sales management and accounting solution for VSEs and SMEs, whose expertise has been recognised for over 30 years.
- Sellsy Facturation & Gestion: the French invoicing software for VSEs and SMEs, which is both comprehensive and very easy to use.
These tools include the creation of different types of invoices and can be used to manage down payments, purchases, credit notes and quotes, among other things.
These tools include
- creating different types of invoice
- managing down payments, credit notes and estimates.
Don't hesitate to equip yourself with a software solution that allows you to create each type of invoice according to its specific requirements, and to comply with your invoicing obligations on a daily basis.