Understanding Sales Invoices: Key Elements & Regulations
Understanding Sales Invoices
1. An invoice is a document that legally justifies a sale and purchase transaction, constructed in line with data from invoices and order forms. It is issued by the seller of the property.
The invoice differs from a sales slip in that it also includes the characteristics of the rated slip, expenses, transport, insurance, freight, and discounts.
2. It is created using data from invoices and order notes.
3. It is issued by the seller of the property.
4. The invoice includes a series of mandatory data, such as:
- Data of the provider or supplier of the goods, i.e., the seller.
- Invoice date.
- Invoice number.
- Customer data.
- Number of units delivered for each item.
- Unit price of each item.
- Different concepts (cost, discounts, taxes, etc.).
- Total amount of the sales transaction.
- Payment terms for the transaction total.
5. Features:
- When operations are repetitive, the standard practice is to include all operations for the same target in one invoice, allowing a maximum period of one calendar month.
- Invoices sent to the same recipient containing various operations are recognized. In this case, the concepts must be included separately, along with the consideration, the tax rate, and the share of each operation.
- In sales where the price is displayed, simply include the expression “IVA incluido” (VAT included).
- Professionals and business people who conduct business with those not considered as such, or not acting in that capacity at the moment, may replace the bill with a book of numbered vouchers or tickets issued by cash registers.
6. Entrepreneurs and professionals who make buying and selling operations.
7. By the rectified bill.
8. Retention periods:
- 10 years from the receipt of the invoice.
- 15 years.
9. Purchase costs:
- The charges: are taxed at the same rate as the goods being transported. If an invoice carries items at 18%, 8%, and 4% VAT, shipping costs should be apportioned among the different items by applying three different bases for the concept of ports.
- Insurance: is subject to the same rate as the goods. Assuming there are invoice items subject to different tax rates, we apportion among the several articles.
Discounts:
- Commercial discounts: are collected through sales declines or negotiations with the supplier.
- Discount for prompt payment: granted for paying promptly. The rule is to apply it to the amount obtained after subtracting the trade and quantity discounts. If there are other expenses such as commissions, freight, etc., the discount would apply after including these concepts.
- Quantity discounts: are awarded to buyers who make a large order. In the General Accounting Plan, they are named “Rappel post compras” and “Rappel on ventas.”
Reclaimed units:
Reclaimed units are billed and, therefore, part of the gross invoice. The economic cost of these units increases the trade discount.
10. Ticket sales are used for consumer-oriented services, such as shopping in a supermarket, taxi services, restaurants, etc.
11.
- Errors in invoice (price changes, quantity of articles, discounts, etc.).
- Returns of goods.
12. Invoices should be issued on the spot, or when the recipient is an entrepreneur or professional, within thirty days from the accrual or the last day of the month when billed monthly. They should be given to the recipient at the same time of issue or within thirty working days.
The seller must prepare an original of each invoice, ticket, or voucher and may issue a duplicate when there are multiple recipients or in case of loss of the original, with the expression “duplicado” overwritten.
Sellers must retain copies of each invoice, ticket, or voucher for six years from the expiration of the term, but movies can be replaced by microfilm tapes that document.