Different types of Invoices

There are many different types of invoices businesses can create for their clients, and the type of invoice you choose will depend on your industry, how you bill for your services and how often you plan to get paid.

The different types of Invoices that businesses can create for their clients are:

1.    Standard Invoice

            A standard invoice is issued by a business and submitted to a client. This is the most common form of an invoice that businesses create and the format is flexible enough to fit most industries and billing cycles. Standard invoices include the following details about the sale:

• The business’s name and contact information
• The client’s name and contact information
• An invoice number
• The amount of money the client owes the business for its services/Items
• GST/VAT or any Tax statutory mandate number

 
2.   Retainer Invoice or Proforma Invoice

               A pro forma invoice is an estimated invoice that a business sends to a client before providing its services. A pro forma invoice provides the client with an estimated cost of the work to be completed. Pro forma invoices may have to be altered once a project is complete to accurately reflect the hours worked. 

It can also be an advance payment against the estimated project amount. Since it is not a true invoice format, it is neither recorded as account receivable nor account payable.

To create Proforma Invoice from HAL ERP, Goto Sales>>Invoice>> Create New

Change to "Advance" settings on the top right corner of the form.

You can choose to create Proforma Invoice from the 'Invoice type' field, either from a quotation or

from a Sales Order.

3.   Progressive Invoice

        Progress invoicing – also referred to as progress billing – is the process of invoicing a client incrementally for the percentage of work that has been completed of the total work due. 

To create a Progressive invoice in HAL ERP,  Go to Sales Order>> Invoice

From the Add items grid, there is an Invoice % column where we could mention the percentage of the total invoice to be billed for that particular invoice.

You can choose to print a Progressive Invoice from the Print option of the Progress invoice created.

4. Invoice on Delivery

            A Delivery Invoice is a document, similar to a standard invoice,  submitted to the customer on delivery of the item/services.