A company that is GST-registered sends the purchaser a tax invoice. Such an invoice specifically states the GST rate applied to the sold goods and services.

Some businesses with GST registrations, however, are not permitted to add taxes to the invoices they issue. These merchants must issue a Bill of Supply. When GST is not applicable to a transaction or when GST is not to be recouped from clients, a Bill of Supply is provided.

Who should issue the Bill of Supply?

The registrants listed below should issue Bills of Supply:

• Composition Dealer

If you are a business whose sales are less than 1.5 million rupees, you can opt to pay taxes under the composition scheme. If you choose to pay taxes under the composition scheme, you will have to pay the tax yourself. You cannot ask your customers to pay the tax for you. You will not be allowed to charge the tax in your invoice. Instead, you will have to give a bill of supply.

• Exporters

The GST component of an exporter’s invoice is not necessary. This is because supplies for export are not taxed. Therefore, a Bill of Supply may be provided in place of a tax invoice when exporting products.

In their Bill of Supply, the dealer must include the following information: “Supply meant for export on payment of IGST” and “Supply meant for export under bond or letter of undertaking without payment of IGST.”

• Exempted Goods Supplier

A Bill of Supply must be issued by a registered dealer whenever exempt items or services are supplied. For instance, a registered taxpayer must submit a Bill of Supply rather than a tax invoice when supplying raw agricultural products.

Contents of Bill of Supply

A Bill of Supply should include the following information:

• The supplier’s name, address, and GSTIN
• Bill of Supply reference (Each Bill of Supply must have a distinct number for that financial year that is no longer than 16 characters long and generated consecutively)
• Issued on and If the receiver is registered, then mention name, address, and GSTIN.
• The Bill of Supply also contains accounting codes for services or HSN code for goods.

Based on the amount of revenue in the previous financial year, the minimum number of digits is as follows:

• Product/service details
• The value of the products or services after adjusting for any discounts or reductions
• Digital or manual signature of the vendor 

Can a registered person issue a bill of supply?

A registered person must issue a bill of supply in place of an invoice if they only deal in exempted supplies or use the composition scheme (composition dealer).

What is the difference between invoice and bill of supply?

For all types of taxable sales, whether they are local or central, a Tax Invoice is used; conversely, a Bill of Supply is used for all types of exempt sales or sales done by composition dealers.

The post Bill of Supply appeared first on MyBillBook.

This blog summarises the invoicing types and their purpose and helps you choose the proper invoice before you send them out. 

The following are the types of invoices.

The Invoices Sent for One-time Transactions

You would use these invoicing types in simple transactions between a buyer, seller, or service provider.

Sales Invoice

A sales invoice is commonly called the “regular” invoice. You can use this as a buyer to request a product or service payment and as a legal transaction record after the payment is complete. The invoice has fields:

• Seller information
• Buyer’s address
• Delivery date
• Payment terms
• Items and their rates
• The total price
• The buyer’s bank details
• Payment links

Proforma Invoice

You can use a proforma invoice as an estimated invoice by the seller and send it to the buyer before providing any goods or services. The invoice has fields:

• Items to be sold
• Quantity and price of items
• Delivery date
• Shipping address

You can screen the proforma invoice before asking the seller to start working on their side of the deliverables. 

Consolidated Invoice

A consolidated invoice is an invoice that groups all the existing invoices under your name when you are the buyer and compiles them into a single invoice with one total. Consolidated invoices save you a lot of time since you would never have to pay for individual invoices.

Overdue Invoice

An overdue invoice means an invoice passed the due date mentioned when you send an invoice. Typically, a sales invoice becomes an overdue invoice when you, as a buyer, fail to complete your payment within the stipulated date. Whenever this situation arises, you become a defaulter. Your seller can use this invoice for the following:

• Sending reminders on payment 
• Sending notifications about late fees
• Take a legal action
• Waive off your overdue invoice

The Invoices Sent for Projects

Retainer Invoice

You will receive a retainer invoice if you are a buyer to collect prepayments for an upcoming task. You have to pay the amount mentioned in the retainer invoice to reserve and access the seller’s business services. Usually, people use retainer invoices when collecting advance payments for capital or logistics or protecting against cancellation.

Interim Invoices

These partial invoices contain only a portion of the final invoice’s fee for funding the project and covering the operational expenses. You can use the interim invoices for larger, more expensive projects because you can break the total amount into smaller invoices to make it more affordable. The percentage of work completed or milestones achieved throughout the project determines the amount entered.

Timesheet Invoice

You might come across the timesheet invoices when your business charges your clients based on their employee’s work timings. Timesheet invoices generally apply for services. You can calculate them by defining each employee’s per-hour charges and multiplying them by the total hours worked on the project.

• The tasks performed
• Charges per hour
• Total worked hours 
• Start and end date of the project
• Administrative fees

Final Invoice

A final invoice refers to the last invoice you send at the end of your project. It highlights the total amount owed to the product or service provider. You can calculate the total by deducting the retainer and interim invoice amounts from the total amount owed. Like a regular invoice, the final invoice has the following fields:

• Payment terms
• Invoice creation date
• Items
• Subtotal
• Deductions (retainer and interim invoice totals)
• Invoice total

The Memos

You can use memos to make corrections to past transactions instead of sales.

Credit Memo

A credit memo is an invoice used when the seller owes the buyer money, unlike when the buyer pays the seller. It is a document you would receive as a buyer that acknowledges the owed amount and issues a form of a credit to you from the seller. You can use these issued credits for future purchases from the same seller. 

If you are a buyer, you can issue credit notes when:

• You want to cancel an order
• You wish to return a product
• The product or service is not satisfactory
• You have received damaged products
• You wish to get compensated for an invoicing error
• Your seller wants to offer you a discount on your next purchase

Debit Memo

You can use a debit memo to issue to clients for making changes to past invoices and increasing the total amount owed by your clients if you are a seller. It differs from a sales invoice because people use a sales invoice when selling a product or service as a debit memo to adjust invoice totals of previously sold products or services.

Mixed Invoice

A mixed invoice is any invoice that combines the items in a credit and debit memo, showing the aggregate as the total.

Other invoices

Commercial Invoice

If you are a buyer, you can use a commercial invoice document as proof of an international transaction between you and your seller for legal purposes and vice versa.

You can primarily use these documents to calculate tariffs, determine taxes, and obtain customs clearance for the shipment in and out of the country.

Recurring Invoice

A recurring invoice is an invoice you can regularly send for products or services offered repeatedly. The frequency of sending these invoices is:

• Weekly
• Monthly
• yearly 

To continue using the product or service, the customer must ensure the payment of these invoices on time. 

Invoice Based on Formats

Digital Invoice

A digital invoice is an invoice you generate using softwares like myBillBook when you buy items. For developing a digital invoice, you will need to input information like:

• Your seller’s details
• items’ names
• Quantity
• Price
• total money owed

On receiving these data, the software will create an invoice for them. In addition, you can customise these digital invoices using word processors, spreadsheet tools, downloadable templates, online invoice generators, and dedicated invoicing software.

E-invoices

An e-invoice is an invoice document in a structured format, unlike a digital invoice. You can issue, receive, and process it electronically without manual intervention. 

E-invoices are interoperable between different billing systems, so a buyer’s accounting system can read and understand receipts and invoices created by the seller’s invoicing system. Thus e-invoices automate the end-to-end Accounts Receivable and Account Payable processes. 

In addition, they also help reduce the scope for tax evasion since you can file taxes using e-invoices directly. You can also automate e-invoice creation using our e-invoicing solution, myBillBook, which would help you create e-invoices in less than 20 seconds.

Before drafting the invoice, consider its aim. Then, choose the appropriate invoice types that will do the task. Or use a specialised solution like myBillBook allows you to perform billing.

The post Types of Invoices appeared first on MyBillBook.

In earlier days, generating an invoice meant using a pen and paper to manually write down the transaction details and handing over the physical paper to the buyer from the seller. However, with the advancement in technology, now you can generate invoices online. 

It has become mandatory for businesses in India to file online invoices for all their B2B transactions if their turnover is more than INR 500 crore. Even if it wasn’t mandatory, there are many benefits to filing online invoices. 

Steps for Generating a B2B Invoice

Step 1: After signing up and saving your business details on myBillBook, you can go to the invoice section and select a template of your choice. Select a template that meets most of your business requirements.

Step 2: Add themes, colours, and icons or logos to personalise your desired template. You can also choose to add or remove information headers from the templates to ensure all your needs are met. 

Step 3: Once the basic structure is ready, you can add the details like the client details, date of transaction, items involved, quantity, amount, and total payable amount, including the taxes. You can also save the client details for repeated use so that you do not have to enter them the next time you are generating any document for the same client. 

Step 4: Once all the details are entered, you can generate it and share it with the client online using email and Whatsapp, or you can take a printout of the same. You can track and sort through your documents by month, invoice number, client details etc.

Steps in B2B Transactions

In the case of business-to-business transactions, payment is usually made once the goods and services are delivered. If you are wondering about the steps of generating invoices, they are as follows:

• Set the terms of payments with the business.
• Get a purchase order from the business client.
• Fulfil the delivery of goods and services as per the order.
• Send the invoice for payment.
• Receive payment at the due date.

Advantages of Generating Online Invoices

It makes the process faster: An invoice is issued for the buyer to receive payment for the same. For physical invoices, it becomes hard for a business to keep track of all payments, check with the bank for the credit of payment, and maintain all receivables and payables manually. An online invoice streamlines the payment process and makes it easy to track all transactions in one place. 

It shrinks the payment cycle: In case of a physical check being used to make payments, it can sometimes lead to failure in payments or issues because of handwriting, resulting in a delay in payment, causing the payment cycle to expand beyond expectations. With online B2B invoice, you can manage those payments and keep an effective check on the successful and failed transactions, helping your business shrink the payment cycle. 

It improves business efficiency: With the process of invoicing becoming faster and smooth, businesses can improve their overall efficiency. As they spend less time generating invoices, writing the transaction details, and collecting payments, they can spend more time on improving the core business processes. This can result in an overall improvement in their business performance. 

It is easier for the other businesses as well: The businesses who act as suppliers or customers for your business also generally prefer an online invoice. It helps them manage their expenses and incomes simultaneously while they also enjoy the rewards or benefits offered by their banks. 

Why should you use myBillBook for your B2B Invoicing needs? 

There are many advantages that come with using myBillBook for all your invoicing needs. Some of them include: 

Accounting and bookkeeping: With myBillBook, you can also maintain an online ledger, generate P&Ls and balance sheets online and maintain all your financial documents in the same place. The accounting and bookkeeping business processes become faster and more accurate when done online. 

Tax filing: The invoice templates that are available on myBillBook invoicing software are GST compliant. This means that you can use the same invoices to calculate taxes that your business owes to the government. The online documents help you in the filing of taxes and tracking of the relevant documents in time. 

Inventory Management: In addition to reducing accounting and bookkeeping errors, myBillBook also helps you keep an instant check on your business inventory. Instantly updating the inventory records after each transaction enables you to place orders for restocking your inventory in time. 

Business Analysis: myBillBook can also help you generate business reports relating to your business’s various verticals and processes. You can analyse these reports on the go and keep a regular check on your business performance. 

The Best Invoice for B2B transactions

On myBillBook, there are a variety of formats and templates for you to choose from. If you wonder which is the best template for these transactions, you should know that there are no right or wrong templates. Every business has to create a template that works well for them. Depending on the specific requirements of your business, you can create an effective template for all transactions or different templates for different kinds of transactions. 

The idea is to create a template that fits your business needs the best. This is why myBillBook offers you the freedom to choose from a wide range of templates. 

The post Guide to B2B Invoice appeared first on MyBillBook.

Downloadable free furniture invoice templates

With myBillBook invoicing software, furniture businesses can conveniently generate and download as many furniture invoices in a day as required, for free. In addition to the free downloadable invoices, you can also choose from a huge variety of templates depending on your business requirements. Choose the furniture bill format that best meets your needs and further customise it to synchronise with your brand image!

Find Free Invoice Format In Excel & GST Bill Format In Excel

Benefits of using furniture invoice templates from myBillBook 

Simple and convenient: Gone are the days when businesses had to write each invoice by hand. With technological advancement, generating furniture business invoices has become much more convenient and straightforward. myBillBook invoicing software is the perfect example! 

Easy tax filing: The furniture shop bill format templates that come with myBillBook are also GST-friendly. This means that you can use the same invoices while filing taxes. Using various templates, you can also automate GST calculation applicable to various products. 

High level of customisation: myBillBook provides a wide range of furniture invoice templates. You can choose the template that matches all your requirements criteria. Also, you can customise it using different themes and colours. Not just that, myBillBook allows you to integrate your brand logo to create a highly personalised invoice. 

Reduced transaction time: By relying on myBillBook for your furniture invoicing needs, you can reduce the billing time. You can scan the products for their codes and automate tax calculation, thereby reducing the transaction time by a significant margin. 

Efficient account management: Each account, including the receivables and payables, can be managed efficiently by tracking all payments in one place on the myBillBook software. You can also set payment reminders, send alerts to your customers about due payments, and collect the payments in just a few clicks.

Furniture invoice template highlights 

Easy to download and printable invoices: myBillBook furniture invoice templates are ready to use and easy to download and save. You can also print them on A4 or A5 sized sheets. 

Simple designs: The furniture bill format you select for your business will be a simple design that any staff member can use and edit. You can also check out myBillBook’s guided tutorials for generating and customising your furniture business invoices. 

Shareable online via Whatsapp and emails: In addition to being print-friendly, these furniture invoices can be directly shared online using platforms like emails and even Whatsapp. 

Professional invoices: The designs are also highly professional even though simple and completely customisable. Small and medium businesses can use these invoices to create a lasting impact on their clients. 

Which furniture invoice template should I use? 

If you are confused about which invoice template to use for your furniture business, myBillBook has you covered!

You can decide the best invoice template for your furniture business based on the following points: 

Invoice details: While choosing a furniture bill format for your furniture business, it is essential to keep in mind the details you want on your invoice format. You can choose a template that can include the necessary information that your business needs or choose a customisable invoice template. 

Invoice formats: Some invoice formats available on myBillBook include Word and Excel sheets. Select a word format template if your invoice does not have too many formulas and calculations. Word invoice templates can also be used if you want your invoice to be visually appealing. On the contrary, you can use Excel format templates if your invoices involve many formulas and demand less creativity.  

Colours and themes: You can choose your furniture bill format templates from among the ones available on myBillBook, depending on your aesthetic choices. If you want your business invoice to represent your brand identity, choose the invoice that can incorporate your brand logo and colours well.

Payment type and time: Depending on the nature of the transaction, you can choose from among the various kinds of furniture invoices available for small businesses. There can be separate invoices for a credit transaction or recurring transactions. With myBillBook, you can keep such invoice formats ready for different types of transactions. 

Types of furniture invoices for small business

Here are the most used invoices by a small/medium furniture business that can be generated using myBillBook: 

Standard furniture invoice: A standard invoice for a furniture business is the most basic one that covers the essential details of the transaction, including customer details, product details, and total amount due, including taxes applicable. 

Credit furniture invoice: In case of a transaction where the customer has some credit that he/she can avail of later by purchasing something from the furniture business, a credit invoice can be generated. This invoice is the proof of the amount of credit that the customer can avail of up to a particular date. 

Debit furniture invoice: If the customer involved in a particular transaction owes some money to the furniture business (due for payment on a later date), a debit invoice is generated by the business. The debit invoice includes the details of the amount and date of payment due. 

Recurring furniture invoice: When a furniture business has customers with repeat orders, a recurring invoice can be used. It shows the standing order for every month and is useful in tracking payments per the agreement between the customer and the business. 

The post Furniture invoice template appeared first on MyBillBook.

When a client receives the vendor invoice, he/she will add the vendor invoice details to their organisation’s financial records. If the company uses accounting software, then the details will be entered into the software to schedule the payment. Moreover, while billing, the amount should be entered into the Total Due field.

Tips for managing vendor invoice in an organised fashion

You can find several ways to manage vendor invoice in an organised manner. Below you can find the tips to do the same.

1. Keep the process current and updated

Always add the name, address, and other information on the invoice accurately. Cross-check the vendor invoice to find any errors, rectify if any send it to the customer for payment. Make sure to file the invoice daily to avoid any hassles. If the filing of the invoices and immediate collection on the invoice are done perfectly, then both the customers and the vendor can save a lot of money and time.

2. Save the files in Chronological Order

It is a wise idea to keep different e-folders for saving monthly invoices, which will make it easier to check in the future. If you are generating invoices manually on paper, then you will be wasting a lot of paper, and at the same time, the paper invoices can get misplaced anytime. So it is important to digitise all the work if possible. 

3. Organise Invoices using Spreadsheet

Spreadsheets are the best way to keep your invoices organised. You can organise the invoices in numerous organisational options. Using a spreadsheet, you will be able to arrange monthly invoices in just a single spreadsheet. This will also make it easier to check your monthly invoices by just clicking on the spreadsheet named after that month.

4. Arrange invoices with Invoice Book

An electronic invoice book can be very helpful for any kind of organisation that needs to generate vendor invoices. Even though you keep hard copies of the invoices, it is a smart move to save all the invoices in the electronic book.  

5. Get Invoice Software

Generating invoices for every transaction can be time-consuming, and at the same time, you may end up creating errors when doing everything manually. But if you work with myBillBook to create invoices, it will be easy and accurate.

6. Invoice Scanners

In a standard filing system, there can be many issues that arise at any time. You might lose track of what is paid and what is not paid. myBillBook has invoice scanners that can help in filing the invoices properly. If you have invoices scanners, you can surely reduce human resources and enable faster payment to vendors. These can save your revenue, and you can effortlessly search and retrieve the data whenever required. By using an invoice scanner, you can send an invoice to a customer on the spot.

7. Use of cloud storage and sharing the invoices

The advantage of using myBillBook cloud storage is to share the details online. You can access the data wherever you are and whatever device you use. If you have access to your cloud storage, you can check all the details online. You can even give access to cloud storage to your employees if required. Moreover, cloud sharing helps you share and save documents with your clients very quickly without delay.

8. Do not delay to send the invoice

It is not professional to keep the vendor invoicing work pending. Make your invoices regularly and send the invoices on time to the clients. If you delay the process, the client will not pay until the invoice is received. Accuracy and consistency are the two golden rules that every organisation must follow to save business revenue and time.

Benefits of using myBillBook and automating vendor invoice process

Many organisations use automated vendor invoices to streamline the processing of invoices. Using the automated system can add more control over the internal processing functions to track the invoices and speed up the process. Some of the major benefits of myBillBook vendor invoicing processing are as follows:

1. Invoice Processing without Papers

Going for paperless invoice processing can enhance the ability to streamline your AP function. These days technology has advanced so much that most organisations use an automated system to simplify their work. At the same time, using myBillBook can help in reducing time and cost.

2. Centralise the date and processes

Using myBillBook for invoice processing can help in centralising all the data related to the invoices. When you have an invoice in your system, and if it needs verification, you can take the purchase order from your integrated accounting system. Then your invoice automation software will assist in matching the invoice data with the purchase order. This helps in ensuring if the invoice and the purchase order are valid. If this can be done faster, the employee who approves such documents can do their work faster.

3. Can establish KPI’s

 If you follow the two steps mentioned above, it can make it easier to establish and track the KPI without much effort. By using an automated system, it is easy to track and create timestamps whenever an activity is performed. This will leave an audit trail that can be searched easily through advanced search and reporting.

4. Invoice Communication Becomes Easy

When you receive an invoice, to check the proof, you do not have to search your emails or any other paper document or messages if you have an automated system for all these processes. You will find the purchase order details and the amount you have promised through your system.

FAQs

1. What are the steps for invoice processing?

The significant steps in vendor invoicing processing are capture, register, dispatch, approval/rejection, payment, and archive. Capture means the vendor invoices received by fax, mail, email, etc. Registering is the step for preparing the invoice approval by coding and updating the data. Once this is ready, the next step is to send the invoice to request payment. After dispatch, the invoice will be approved or rejected. Then the payment is made, and paid invoices are stored in the online system or as a paper document.

2. What is invoice processing software?

Invoice processing software is a digital technology used by accounts payable to handle vendor invoices electronically.

3. What is automated invoice processing?

Automated invoice processing uses software to perform all the steps in creating an invoice automatically. This will include data capture, dispatch, and approval.

4. What is invoice processing used for?

An invoice processing is used by the account payable department, which can handle all the invoice-related activities comprising invoice receipt, invoice approval or rejection, invoice payment, and invoice archive procedure.

The post Guide to Vendor invoice appeared first on MyBillBook.

A temporary invoice is a bill issued by a trader to hand over to the customer when the purchase of any gold item is made but is not recorded in the book of accounts by the trader. Such invoices are made by certain traders to avoid paying income tax. Here, the customer also does not have to pay taxes like GST. This is the reason why such retailers offer discounts to customers. 

Whereas a permanent invoice is based on the legitimate transaction and the invoice will include the details like the purity of the gold, jewellery name and code, break-up amount, and GST identification number of the jewellery. The main reason why a permanent bill is required is that this invoice is proof of the purity of the gold, proof of legality, shows the accurate value, and is evidence of legal ownership.

What are the components of the gold bill format?

This section will give you a clear idea of the components of the gold billing format. An accurate gold billing format will include all the necessary information which states that the transactions are legal. But to know this, you should know what elements are included in a permanent gold invoice. Below you can discover the list of components that are involved in a jewellery invoice.

• The heading of the bill should be stated as Invoice
• The next details will be the name, address, and contact information of the business
• Name and contact information of the buyer
• The date on which the invoice is generated and the purchase was made
• Unique Invoice Number
• Details of the gold ornaments purchased along with the prices
• The quantity of the items bought
• Details of the taxes added and other applicable fees
• Discounts applicable if any
• The total amount to be paid including the taxes, fees, and discounts
• Mode of payment
• Agreed credit terms if any
• Terms and conditions of the sales made
• Registration number of the business

When you receive the gold bill format, if all the above-mentioned elements are included, you can be sure that you are getting a legal business transaction. So, whenever you purchase gold, do not just collect gold bill format and keep it in your bag. Cross-check if all this information is recorded accurately. Check the names of the items you have purchased, along with the quantity and price.

How to make GST bill format for gold jewellery using myBillBook

With the help of myBillBook, creating a GST bill format for gold jewellery is easy. Here you go with the steps. 

Making GST bills or invoices

• First, you must create a GST compliant to make the GST bill. 
• The invoice can be created in three steps, and it should include necessary information like the GSTIN of both parties if it applies to the party. 
  • The billing and shipping address of the part should be included, and the consecutive invoice number. 
  • Moreover, the date of issuance and the HSN code of the items should be entered. 
  • Likewise, CGST/SGST/IGST on every item must be entered as applicable. You can also create bills without the GST if required. 

You can customize the invoice for any kind of business, such as a distributor, trader, wholesaler, retailer, stockiest, etc. 

• Also, any type of industry, like pharmacy, FMCG, electronics, etc., can create customized bills. 
• By using myBillBook, you can even choose the invoice themes and colours from the multiple choices given. 
• Moreover, you can scan the items using the barcode scanner and reduce the billing time with the help of the software. 
• If you have this software, you can share the bill instantly with the customer without any delay via WhatsApp or email. 
• Even though the bills are created using the software, if you want, you can take printouts using regular A4 and A5 sheets with a thermal printer. 
• Using the software, you can create purchase vouchers, payment receipts, quotations, proforma invoices, purchase orders, sales returns, purchase returns, delivery challans, and even expense vouchers. 
• You can add and save the contact numbers of the customers, and the software can send automatic SMS to the parties whenever any voucher is created in their name. 

Old gold purchase bill format in GST 

The sale of old gold jewellery is not considered the business of the individual. Therefore the transaction of old gold will not qualify to be a supply, and it will not attract any provisions of GST. Thus, no tax is to be paid on a reverse charge basis. But, keep in mind that if the old gold ornaments are sold by the unregistered supplier to a registered supplier, then the provisions of the reverse charge mechanism will be applicable. Hence the tax is payable according to the quantity and the price of the gold.

Benefits of using myBillBook to make GST bill format for gold jewellery  

These days a majority of the gold jewellers use online software to make GST bills as it can make their work simpler and error-free. Here are some of the benefits of using myBillBook to make GST bill format:

1. Readymade GST Invoice Templates

If you are using online software, you will be able to find ready-made invoice templates. This helps in choosing the correct invoices for the customers and can have the invoice report in a GST-compatible format. You just have to check if all the details are mentioned in the bill.

2. Can control the financial data

Bu using the online software, you can easily track all the invoices that are sent and can manage all the payments received. Besides, filing the report also becomes easier and hassle-free by using the integrated system. This will benefit in saving a lot of time and money.

3. Get paid faster

The online software keeps track of all the payments and specialised reports to understand when an invoice is overdue. Moreover, the customer can get automated notifications for payment through the software that helps in getting your money on time.

4. Say no to errors

Creating GST bills manually can generate many errors. But using online software, you can avoid any kind of errors and can easily apply CGST, SGST, and IGST for every invoice generated. This can also reduce a lot of the time of your employees.

5. All the data are sorted safely.

As a business owner, you will have to check all the data to verify the transactions made in the business. By storing all the data in the online software, accessing the data become easy from anywhere using any device. Even though the data are stored online, everything will be encrypted, and only people who have access to your account can see the data.

6. Files GST Returns

The billing software available to use is compatible with GST, and it helps in filing your GST returns which is essential to comply with the laws of GST.

The post Gold Invoice Template appeared first on MyBillBook.

Read the following to understand what an invoice number and invoice number format are.

What is an Invoice Number, and why it is used? 

• An invoice number is just a number mentioned on the invoices to mark them, which helps in tracking the business transaction quickly and easily. 
• No matter with whom you are doing your business, the invoice number is essential, especially if you are dealing with a recipient in any other countries with strict invoice regulation, then providing an accurate invoice number is crucial. 
• Moreover, a correct invoice number can avoid any legal problems as each country determines the taxation and VAT laws.
• Every invoice will have different consecutive numbers that help in ensuring each invoice is distinctive, and using the invoice number, the employee of the organization can organize every business transaction. 
• At the same time, the transaction can be referenced for all accounting purposes and customer support. 
• An invoice number can also help in eliminating any duplicate payments, which can avoid huge losses for the company.
• An invoice is usually generated to ask for the payment for the purchased products or services and a receipt is used as proof of payment. 

Significance of Invoice Number format 

When it comes to the invoice number format, it is up to you to choose how you want to assign them according to your convenient method. But you must make sure that the number format you follow should be easy to file and it should be with the numbering system by avoiding any gaps or skips in the order. 

Some of the most commonly used invoice number format is in chronological order, by customer number, by project number and sequential. If you are using accounting software, then the invoice numbering system will be in sequential numbering as default. It is significant to add the name of the customer and the price on the invoice when you enter the invoice number, for quick reference. 

Tracking invoices becomes extremely difficult when you are dealing with a vast number of orders. But if your invoice number format is in chronological order, then tracking the invoices by the dare becomes easier. While you add invoice numbers according to the customer number, you can decide to include the date or not. 

If you add the date or exclude it, the number will always start with the customer number followed by the date and the sequence number. Whichever structure of invoice number you choose, the sequence number should always come at the end. The advantage of doing this is to find and differentiate from the others in its sequence.

In case if you are not adding the date along with the invoice number, make sure that you add more digits to the sequence number. This can avoid running out of sequence choices. 

Another way to assign the invoice number is based on the project number. This type is used by companies who take projects where the number is a vital reference for their work. 

Such invoice numbers will include the project number, customer number, and sequence number. 

You can choose any system mentioned here for numbering your invoices, but the system should correspond to your needs. Only then you will be able to locate the invoice easily for reference. If you are using accounting software, then a majority of the headache of creating and assign the invoice number can be reduced.

How to generate an invoice number and assign them with examples?

As mentioned above in this article, there isn’t any single standard invoice numbering method. Every business has all the right in choosing the best numbering way based on their convenience. Below you can find the four numbering formats used by businesses generally.

1. Personalize Invoice Numbering using myBillBook

myBillBook can help you produce the invoice numbers automatically. It is possible to choose your prefix and starting number by enabling the toggle. See the steps given below:

• First, log in to myBillBook
• Click on the More icon
• Choose Settings
• Click on  the invoice and select Numbering

• Now it is time to enable the Toggle. It will automatically generate the number when generating the invoices
• Then set the Prefix as Static Text or you can choose Year of Invoice Date
• You will be able to set any custom text according to your preference in the Static Text
• If you select the Year of Invoice Date, the present year will be updated automatically in the system
• If you have selected the Prefix as the Year of Invoice, you will be able to view the Rest at the beginning of the year
• Now you have to set the Reset at the start of the year by enabling the Toggle
• Click on the Start With button to set the starting number of the invoice.
• You can now create the invoices and view the invoice number you have customized
• If Static Text is designated, then you can see the number produced with the stated text and Start with a number. But if the Year of the Invoice Date is chosen, then you can only view the created number with the year and start with a number.

2. Project-based Invoice Number

This is the last type of invoice numbering system which is used by businesses who take many projects or for whom the project number is very important. The two ways of project numbering include the following:

• project number + customer number + sequence number = ABCXYZ303- 1265-01
• customer number + project number + sequence number = 1265- XYZ303-01

3. Customer Invoice Numbering

The number will begin with the customer number, followed by the date (optional) in the customer invoice numbering system, and it ends with the sequence number. An example of this numbering system with 4035 as customer number on Dec 29th, 2019 is 4035-001 or 4035-20191229-001.

4. Chronological Invoice Numbering

The chronological method is a way to create longer and more detailed invoice numbers. In this invoice numbering system, the date on which the invoice was created is added. 

For example: if the invoice was generated on Dec 28th, 2020, the invoice would look like 20201228 – 001. The invoice no format will be YYYYMMDD-001.

In the example shown above, the first part is the date and the second part is the order number which will go up after every new transaction. 

You can even use another format of the chronological system, which is DDMMYYY and MMDDYYY.

5. Sequential Invoice Numbering

This is an invoice numbering system where the numbers move up by one with every single invoice you create. You can start with entering invoice number 1, followed by 2, 3, 4, 5, etc., for the upcoming invoice. It is also feasible to enter the invoice number as 00001, 00002, 00003, and so on. But the most common sequential invoice numbering is given as 0000000001 (9 zeros followed by the digit). 

If you do not have accounting software, you will have to enter the invoice number manually, so always write the customer’s name and amount owed in separate sheets. The advantage of entering these details in separate sheets is to check this information in the future if any typos or duplication error occurs. 

But if you are creating an invoice using accounting software like myBillBook, then the invoice number is automatically assigned for every new transaction. The software will not allow any duplication, even if you try to enter one.

The post Guide to Assigning Invoice Numbers appeared first on MyBillBook.

An invoice is an official payment request which is sent by the vendor to their buyers when the order is satisfied. A purchasing invoice will include a list of goods and services that have been delivered to the buyer. It will also specify the amount that the buyer owes to the vendor. Usually, an invoice will include details like invoice number, vendor details, credit or discounts availed, payment schedule or date, and the total amount due.

A purchase order makes it easy to track all the inventories, and the invoice helps in computing the taxes spent. Both invoice and purchase orders are essential for every business as this helps in recording the business transaction and can easily enter the details in the accounting system.

How are purchase orders and invoices similar?

A buyer generally prepares a purchase order when they purchase or order goods and services from a vendor. Whereas the seller generates an invoice to ask for payment for the goods and services provided. This means a purchase order is sent to the seller, and the invoice is sent to the buyer or the consumer. A purchase order comprises order details and the delivery date of the order, whereas an invoice will include the price of the products or services along with terms and conditions of payment and the payment due date.

When a consumer places an order for any product or service, the purchase order is generated. But an invoice is generated after the order is complete. An invoice shows that a sale is done and the purchase order is the contract of sale. To track the accounts payable in the accounting system, buyers use the purchase order and to track the accounts receivable, the seller uses the invoices to record in their book of accounts. The details of the order and shipping will be included in both PO and purchasing invoice and these are the legally binding documents.

Need for using purchase orders 

Regardless of the size of the organization, purchase orders are used for several reasons in the purchasing department. Here are some of the reasons that state the need for a purchase order in a business.

1. PO sets a clear expectation

A purchase order helps in clarifying the needs of the vendors, and both sellers and buyers can use PO when the orders are not delivered as anticipated.

2. PO can manage orders

This is official documentation that gives the details of income or pending deliveries to the procurements, finance, and operation teams.

3. It helps in budgeting

When a PO is generated, the purchasers can factor these costs into company budgets and can spend the money more wisely.

4. It is a legally binding document

The PO can serve as a legally binding document if there is no formal contract after the vendor accepts the PO. This document will serve as legal protection for both vendor and the buyer.

5. Purchase Orders are an essential part of Audit Trails

When an audit happens in the company, the auditors will look for any financial discrepancies. But when the company issues, processes, and records the purchase orders, it helps in ensuring that the company has enough documents to submit to the auditors.

Top 3 difference between a Purchase order and Invoice

1. The major difference between the purchase order and the invoice is the objective. 

• PO is issued to request the suppliers to deliver the goods or services. Whereas an invoice is used to request payment from the customers. 
• This means the objective of PO is to ensure the fulfillment of the order, and the invoice aims to collect the payment. 

2. There is another difference between these two, and it is the timing. 

• A purchase order is usually sent during the beginning of a transaction to create a contract between the buyer and the seller. 
• But a purchasing invoice is sent after the purchase which means at the end of the transaction. 

3. Moreover, the information included in the purchase order and invoice is entirely different. 

• A purchase order will have a detailed description of the order made with the agreed amount and the estimated time for delivery. 
• But when it comes to an invoice, the term of the payment, discounts, and the total price is mentioned.

Tips to create an effective purchase order 

• Always include the buyer details like the name, address, contact details, and the company logo
• Space should be provided only to mention the delivery address. This is necessary to avoid any confusion between the delivery address and the company address. Also, the delivery address must be highlighted.
• To showcase the legal entity, the format of the purchase order must include the details of business authorisation or other information. 
• It is recommended to include the payment criteria apart from the terms and conditions. In case the payment methods are agreed upon previously, then make sure to enter that in black and white.
• Just like the payment terms, the buyer can also add information regarding the terms of delivery in the PO.
• To achieve the goal of the business, the buyer can specify particular clauses that state the acceptance and return of the products.

Benefits of using myBillBook to prepare purchase order

1. Increases the speed of the PO process

Generating a purchase order manually will take a lot of time and effort. It can also create errors in the information written in the PO, which can result in extra work and pressure for the whole team. If myBillBook is used, then creating a purchase order can be done by anyone within a few minutes.

2. Enhances Productivity

When the purchase order is made quickly without any mistakes using the PO app, it helps in enhancing the productivity of the entire team. Since all the details of the purchase order are available in myBillBook, it helps the accounts departments to record the transaction details quickly. Thus, the company can increase the cash flow and achieve early payment discounts.

3. Saves Money and Time

By using myBillBook, every business can reduce labour cost since an employee does not have to waste a lot of time making a purchase order. Also, recording the details in the book of accounts becomes quicker. Hence the employees can work more efficiently in less time, resulting in saving a lot of time and money by the organisation.

4. Tracks all activities in real-time

If the purchase orders are created on paper, it becomes very difficult to track the details whenever you want. But if you are using myBillBook, you can check the details and track the order whenever you need it. Besides, all the activities currently happening can be monitored at the same time using the app.

The post Purchase Order Invoice appeared first on MyBillBook.

Are you a business owner who likes to keep it all organised? Then a shopping bill is more important than you think!

Every business charges money for the goods or services it renders, and retail shops are no exception. A shopping bill or invoice is a document that the business generates for the customer and includes the transaction details between the two parties. Billing is a crucial part of any business that helps to establish a formal agreement between the buyer and the seller. It imposes an obligation on the latter to pay for the goods and services they receive from the seller.

Shopping Bill format

A shopping bill format is simply a standard layout of what a bill should look like. In other words, a shopping bill format is a template that contains the essential elements of a bill describing the details of a business transaction. It helps the shopkeeper keep records of his/her daily sales and provides a straightforward statement to the customer about the items bought and the money owed to the seller.

Essential elements of a shopping bill format

A shopping bill format has to have specific core components that fulfil its purpose. Thus, when you’re deciding on a shop bill format for your business, you must ensure that it contains all the essential elements. 

Here’s a list of what we mean by essential elements:

• Bill Number: The bill number is an identifier, and it is unique for each bill. Bill numbers will not only help you stay organised but will also aid in differentiating between multiple bills and customers.

• Bill date: The bill date is the date on which the bill is created.

• Contact details of the business: The bill should display the name of the business, address, phone number, email id, and other relevant contact details so that customers can easily reach out to you.

• Contact details of the customer: This field includes the customer’s name, address, and phone number.

• Description of goods and services: Includes an itemised description of the products sold or services rendered with the price and quantity of each and taxes/discounts, if applicable.

• Subtotal: This is the sum of values of all products sold, and it is what the customer pays.

• Additional information: It may include delivery details, mode of payment, etc.

Also Check: GST Bill Format in Excel

Types of Shop Bill formats

A shop bill or invoice template usually comes in the following formats:

• MS Word or Google Docs: These are the simplest options for shop bill formats. While the result is visually appealing, calculating subtotals, taxes and adding line items may be a hassle.

• MS Excel or Google Sheets: These are very good alternatives to Word or Google Docs because of their automatic formulas that make calculations way easier.

• PDF: PDF shop bill formats are a convenient way to get professional invoices. All you’ve got to do is download the PDF file and fill out the fields. However, modifying PDF invoices is not relatively easy.

• Invoice generator: The best option is to automatically use a software tool to create an invoice for you. Besides, you get to customise the format and modify your business requirements.

Where to get shop bill format?

The best way to create shopping bills is to choose a software app that’s packed with customisation features.

myBillBook billing and invoicing software is your one-stop shop for all billing needs. From creating bills and invoices to generating reports, myBillBook offers a host of features for all business types. Here are the highlights of the software:

• Make bills and invoices in a few simple steps (including GST compliant ones).

• Customise bills and invoices for any type of business (stockist/retailer/wholesaler/trader/distributor) or industry (electronics, pharmacy, FMCG, etc.).

• Choose from a wide range of professional layouts, themes, and colours.

• Use the barcode scanner feature and reduce billing time by scanning items.

• Automatically save client details for future use.

• Generate business reports.

• As per your needs, Print bills either regular (A4 and A5) or thermal (2-inch and 3-inch paper).

• Share bills instantly over email or WhatsApp.

• Experience seamless sync between mobile and desktop and many more benefits.

FAQs about Shopping Invoice

1. What are the benefits of using a bill/invoice?

Ans: A bill or invoice is a formal document with details of a business transaction. It helps the business owner bill his/her clients and eases the collection of payments and organising accounts.

2. Why should I use the right invoice template?

Ans: The right invoice template will help you get paid correctly and stay organised.

3. How do I choose a suitable invoice template for my business?

Ans: While choosing the right shop bill format or invoice template, consider factors such as the type of your business, what kind of goods or services you sell, how often you bill your customers, how you want to organise and keep track of your accounts, and what payment methods you accept.

4. How will I customise my shop bills and invoices?

Ans: Any billing software will help you generate a shop bill format and make customisations such as change the layout, theme, add fields, etc., myBillBook billing and invoicing software offers a host of options to create and customise your bills and invoices. 

5. Is it safe to use billing software?

Ans: Yes. Safety and privacy are a legit concern, and myBillBook takes every measure to safeguard users’ data. 

6. Which business needs billing software?

Ans: Be it, retailers or wholesalers, almost every business type needs billing software to generate bills and invoices. Some businesses include pharmacies, groceries, restaurants, hotels, salons, spas, hospitals, gyms, electronics stores, supermarkets, furniture showrooms, etc.

The post Shop Invoice Template appeared first on MyBillBook.

Are you a composition dealer looking for a composition bill format? Here’s what you need to know about the composition scheme bill format.

A composition dealer is someone who has opted for the composition tax levy method under Section 10 of the CGST Act, 2017. Here’s what it means:

• Composition Scheme under GST, composite supply means a combination of two or more goods or services that are sold together and cannot be supplied separately.

• One of the major benefits of this simple and straightforward scheme is that the composition dealer is exempted from the hassles of GST formalities and can pay GST at a fixed percentage of his/her turnover instead of paying at the standard rate.

• While dealers who pay GST under the regular scheme issue a tax invoice, dealers under the composition scheme will issue a bill of supply instead of the tax invoice.

Hence, knowing the format of the bill of supply for a composition dealer is a crucial part of the composition scheme documentation. 

Components of the bill format for composition dealer

The contents of a composition bill format or bill of supply issued by a composition dealer are slightly different from a regular tax invoice.

An invoice format for composition dealers is basically a template that can be customised and curated as per the business requirements. If you are looking for a composition scheme bill format, make sure that your composition invoice format has the following components:

• Date of issue of the bill of supply.
• Bill of supply number (each bill of supply carries a unique number for a particular financial year).
• Name, address, and GSTIN of the supplier.
• Name, address, and GSTIN or Unique Identification Number (UIN) of the recipient.
• Services Accounting Code or the HSN Code for goods.
• Description of goods or services (as applicable), including quantity and rate.
• The total value of supply of the goods or services.
• Signature of the supplier.

What can you change and customise in the composition bill format?

The best part about using an online composition scheme invoice format is that you can customise it to match your specific needs.

myBillBook invoice and bill generating software offers a host of features to help you personalise a composition dealer bill format. Here’s a list of what you can change and customise in a composition scheme invoice format:

• Templates: You can choose from multiple invoice templates, colours, and themes to add a professional look to your bills.

• Add custom fields: Are you not happy with the composition invoice format? You can add custom fields such as vehicle no., Batch no., Eway bill, etc.

• Customise according to business type: Regardless of your type of business (distributor/trader/wholesaler/retailer/stockist) and industry (pharmacy, FMCG, electronics, etc.), you will find ample options to customise your composition bill format.

• Printing options: You can print bills according to your needs. myBillBook supports regular printing (A4 and A5) and thermal printing (2-inch and 3-inch paper).

• WhatsApp and email support: If you like to go entirely paperless, myBillBook even lets you share bills and invoices instantly via email and WhatsApp. 

FAQs about GST Composition Invoice

1. Who is eligible for the composition scheme under GST?

Ans: Taxpayers who have a turnover of less than Rs. 1.5 crore are eligible for the composition scheme under GST. However, in Himachal Pradesh, Tripura, Sikkim, Nagaland, Mizoram, Meghalaya, Manipur, Assam, and Arunachal Pradesh, the limit of the turnover is Rs. 75 lakh.

2. Who is not eligible for the composition scheme under GST?

Ans: The following persons are not eligible to opt for the composition scheme:

• A casual or a non-resident taxable person.
• Supplier of services (except restaurant service).
• Supplier of non-taxable goods under the GST law.
• A person involved in the inter-state supply of goods.
• Businesses that supply goods through an e-commerce operator.
• Manufacturers of ice cream, pan masala, tobacco, and tobacco substitutes.

3. How can I opt for the composition scheme?

Ans: Eligible taxpayers can opt for the composition scheme by electronically filing FORM GST CMP-02 on the GST Portal. 

4. How does a composition dealer make GST payments?

Ans: A composition dealer makes GST payments that comprise the following:

• GST on the supplies made.
• Tax on purchase from an unregistered dealer.
• Tax on reverse charge.

5. What is a bill of supply?

Ans: A bill of supply is documentation issued by a GST registered composition dealer when GST is not applicable on a transaction. Such a bill is issued in place of a regular tax invoice, primarily by businesses and vendors dealing with GST exempted goods.

6. What is a composition dealer bill format? 

Ans: A composition dealer bill format or bill of supply format is a template that contains all the required components of a standard bill of supply. Dealers under the GST composition scheme can download the composition bill format online and customise it as per their business needs.

7. Where can I get a composition dealer invoice format?

Ans: You can download a composition dealer invoice format online. myBillBook offers a range of composition scheme bill format and template options that can be customised and printed.

8. How can I customise my composition invoice format?

Ans: You can easily make customisations to your composition invoice format, such as change the themes and colours or add custom fields. Head to myBillBook to avail of a wide range of customisation features! The app also allows you to generate different invoices including sales invoices, proforma invoices, debit/credit notes, delivery challans, etc.

The post GST Composition Invoice Template appeared first on MyBillBook.