Each invoice has components which you need to know. These could be different for different businesses, however, the fundamentals will remain the same.
- Invoice Type – like vendor invoice, PO / non-PO invoice, Tax invoice (refer https://faoblog.com/processes-ap-invoice-processing-types/ and https://faoblog.com/processes-ap-invoice-processing-types-2/ for details)
- Date of issue of the invoice
- Invoice number – Unique number for the invoice
- Vendor / seller details – Name, details and contact address (with a special focus on the jurisdiction from where the material is being dispatched)
- Tax registration details, including details of company registration number of the seller
- Buyer details – Name, details and contact address of your client (with special focus on the location where material is received)
- Tax registration details, including details of company registration number of the buyer – your client’s unit (some jurisdiction authorities mandate printing of this number)
- Date on which the good or service was sold
- Date on which the good or service was delivered
- Purchase order number (where a PO was placed on the vendor / seller)
- Description of the goods or services rendered
- Unit price of the good or service
- Total price of each item
- Total amount owed or charged (with breakdown of relevant taxes)
- Relevant tax inclusions like Sales & Use Tax, GST, VAT, service tax etc.
- Terms of payment –
- Cash or credit
- Method of payment
- Due date of payment
- Details of any late payment and banking details
- Early payment discounts
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Did you read the post on the IFRS Blog yesterday on IFRS – Exceptions] – Fair value or revaluation as deemed cost. Here is the link https://faoblog.com/ifrs/ifrs-exceptions-fair-revaluation-deemed-cost/
This is great information, especially on the workflow and structure of Ap. The special attention given to reporting structure is also critical as this can be a major stumbling block.
Is it possible to see the various types of SLA’s for AP in future blogs? Thank you…..
Sure John. You will see a lot of this shortly. Watch out for tomorrow’s post. Its on workflow. SLAs will come a little later.
Great site over here! I’ll subscribe to your blog to visit it after a few weeks again!