Types of Invoices

Now that you understand the definition of an invoice and how it is different from a bill, let’s examine the different types of invoices.

1. Sales Invoice
2. Proforma Invoice
3. Credit Notes
4. Debit Notes
5. Commercial Invoice
6. Purchase Order Invoice
7. Recurring Invoice
8. Timesheet Invoice

Sales Invoice

Sales Invoice is a legally binding document that records a transaction between seller and buyer and requests payment for the goods sold or services rendered. 

Proforma Invoice

A proforma invoice is a preliminary invoice that is issued before generating an actual invoice. A proforma invoice is not a legal document. 

Credit Notes

A credit note is issued by the seller when there is return of products by the buyer. 

Debit Notes

A debit note is issued by a buyer requesting return of funds in case of a purchase return.

Commercial Invoice

Used in international trade, a commercial invoice is a legal document that records the export transaction between a buyer and a seller.

Purchase Order Invoice

A purchase order is a document created by the buyer outlining their requirements and expectations about the product and the quantity they are planning to purchase. 

Recurring Invoice

Recurring invoice is a regular sales invoice that is sent to buyers or customers on a recurring schedule. The details of the transaction like the products, quantity, customer details remain same.

Timesheet Invoice

Used in the service industry, a timesheet invoice helps companies to charge clients for a particular task or a project on an hourly basis.

Types of Invoices Under GST

Under Goods & Services Tax, there is a new set of invoices, including some from the regular invoices. The types of invoices under GST include – 

1. Tax Invoice or GST Invoice
2. Bill of Supply
3. Delivery Challan
4. Credit Note
5. Debit Note
6. e-Invoice
7. e-Way Bill
8. Receipt Voucher
9. Refund Voucher
10. Payment Voucher
11. Supplementary Invoice

GST Invoice or Tax Invoice

As per Section 31 of the CGST Act, a registered seller supplying taxable goods must generate a tax invoice. A tax invoice is a detailed record of a transaction between a seller and a buyer. Besides the regular invoice details, a tax invoice must include the respective tax rates like GST, CGST, IGST, etc.

A tax invoice for the sale of goods must be generated before or at the time of delivery. However, for supplying services, GST invoices can be issued before, at, or even after the time of supply. 

Bill of Supply

A registered seller supplying exempted goods or services or both or paying tax under a composition scheme should issue a bill of supply instead of a tax invoice.

Delivery Challan

A delivery challan is issued when goods are transported from one place to another but not necessarily because of a sale.

Receipt Voucher

A registered seller issues a receipt voucher upon receiving an advance payment for any supply of goods or services.

Refund Voucher

A refund voucher is generated when a seller fails to supply the goods after generating a receipt voucher. Which means after receiving an advance payment. In such cases the seller issues a refund voucher against the received advance. 

Payment Voucher

A registered seller paying taxes under reverse charge shall issue a payment voucher while making a payment to a supplier.

Supplementary Invoice

A supplementary invoice can be used to revise an invoice due to an upward change in the product or service price. It must be issued within 30 days of the price revision by the goods or services provider. 

e-Invoice

e-Invoice is a digitally signed and verified document used for B2B transactions. It contains all the details, like that of a sales invoice, but is validated by the government tax portal. 

e-Way Bill

According to Rule 138 of CGST Rules, an e-way bill is mandatory for the movement of goods valued above a specified limit within India. The movement of goods could be for supply or reasons other than supply.

Elements of a Standard Invoice

A standard invoice must contain the following elements – 

1. ‘Invoice’ in the title
2. Invoice number
3. Invoice Date 
4. Details of the seller
5. Buyer details
6. Product/Transaction details
7. Cost per unit of product
8. Quantity
9. Price
10. Tax rate
11. Total amount to be paid
12. Terms and conditions
13. Due Date
14. Payment Terms

GST Invoice Format

A tax invoice or a GST invoice must be issued by a registered person with the following details – 

1. Name and Address of the Supplier
2. Goods and Services Tax Identification Number (GSTIN) of the supplier;
3. A unique invoice number
4. Date of issue
5. Name of address of the recipient or the buyer, GSTIN (if registered)
6. Delivery Address
7. HSN Code
8. Detailed description of goods or services
9. Quantity or Unit
10. Total value 
11. Taxable Value
12. Rate of Tax (CGST, SGST, IGST, Union Territory or Cess)
13. Amount of tax 
14. Place of supply 
15. Whether the tax is payable on a reverse charge basis
16. Signature of the supplier 
17. Quick Response code with Invoice Reference Number (IRN) (in case of e-invoice)

Invoice Sharing With Clients – Different Methods in Use

Invoice sharing is part of invoice management. Choosing the right method/s to share invoices is crucial to ensure timely delivery and prompt payments. An effective invoice-sharing method not only improves the cash flow of a business but also helps in maintaining positive client relationships. Let’s now explore different ways to share invoices.

Physical Invoices

Physical invoices or hard copies of invoices are issued to clients who prefer to have physical documentation. This method prints invoices, and the hard copies are handed over to the clients. The handing over can be done directly, through post, or by courier. 

e-Mailing Invoices

Electronically mailing an invoice is a commonly used method as it offers a secure platform to share invoice information. Once the invoice is created, it can be sent to the client’s e-mail address as an attachment. While sharing invoices through emails, attaching them in PDF format is recommended. 

Using Secure File Sharing Services

You can also use file-sharing services like Dropbox, Google Drive, or OneDrive to share invoices securely. This method is more helpful when sharing larger files and to share multiple invoices simultaneously. Once the invoice is generated, you can upload it to any of the file-sharing apps, and get a shareable link with appropriate permissions (view or edit) and expiry dates. You can share this link with your customer or choose an option to send an email notification. 

Through WhatsApp

One of the easiest ways to share invoices is through Whatsapp. It hardly takes any effort to share an invoice using this popular messaging channel. Once the invoice is generated, share it as an attachment to your client’s Whatsapp number directly. You can attach any kind of format, like Docs, Sheets, PDFs, etc., in WhatsApp.

Common Challenges with Manual Invoicing

Manual invoicing, or the process of using pen, paper and other manual methods to conduct billing, is quite familiar to most businesses. The method might seem convenient, especially at the beginning of the enterprise. However, except for billing, the other invoice management practices, as mentioned above, are hard to practice using manual billing. It also poses significant challenges, like the ones mentioned below, making it difficult to conduct billing. Let’s look at some of the common billing mistakes. 

Errors in Invoices

Data entry errors and calculation mistakes are the most common errors in manual billing. Incorrect billing and wrong customer information often lead to disputes and payment delays.

Missing Invoices

In manual billing, there is no proper tracking system. Hence, the chances of misplacing and losing invoices are high. Missing invoices again leads to delayed payments and other tax-related complications. 

Delayed Payments

Manually tracking the invoices and following up with the clients is inconsistent and time-consuming. This leads to delayed payments that could affect the cash flow. 

Managing Bulk Invoicing

While managing single invoices is difficult, bulk invoicing is time-consuming and labour-intensive and can lead to delays. Further, the larger the number of invoices, the higher the chances of errors. 

Ensuring Data Accuracy

Besides billing, manually keeping product/service details and customer information up to date is prone to errors and can result in inaccurate invoices. Further, the same data needs to be entered multiple times across different platforms, which increases the likelihood of errors. 

Adapting to Regulatory Changes

Staying up to date with frequent changes in tax laws and regulations, such as GST updates, is a significant challenge. Manual systems require regular updates to ensure compliance, which can be labour-intensive and prone to mistakes.

Using Automation to Avoid Billing Errors & Streamline Your Billing Process

If you are still using manual billing or any other method that is inconsistent with the current regulatory requirements and the market standards, it’s high time you consider upgrading your billing system. 

One of the best billing solutions that could resolve most of the billing challenges, especially those with manual billing, is to use an automated system like billing or invoicing software. 

An efficient billing system significantly reduces billing errors, making billing faster and more accurate. It also helps you streamline your billing operations by providing prompt invoice delivery options, enabling efficient payment methods, invoice tracking, auto-reminders, dispute resolutions, report generation, etc. 

The post What is Invoicing – Everything You Need to Know for Accurate Billing appeared first on MyBillBook.

Proforma Invoice Sample

There are no standard industry guidelines for the format of a proforma invoice, and it might look like a sales invoice. Nevertheless, businesses must have a standard proforma invoice format to make it uniform in all business transactions. Here is a sample format or template for your reference.

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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.”

Returning to the basics of what invoicing involves can help explain why this is the case.

• 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.

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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.

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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.

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