Type of Transport Document: Commercial InvoicePosted in Transport Document - 3 Aug 2020, 2:23 PM
Knowing how to make a commercial invoice is a requirement for every medium to large business, including logistic and export. Created after the finalization of a transaction, this invoice has several roles and benefits for business owners. You need to invest in proper invoice design, details, and software to create a reputable, long-term business.
Content of Commercial Invoice
Commercial invoice is a bill of sale that serves as a formal reimbursement request from the business owner to the customer/client. Unlike a proforma invoice, the commercial one is issued after the customer confirms their purchase. Business owners send the invoice along with the goods to “remind” the customers of their financial obligations.
Generally, a commercial invoice contains several key points. They are:
1. Seller’s and Buyer’s Details
A formal invoice must contain the formal details of your business. They include the business name, logo, seller’s name, contacts, and addresses. Besides, you may include the tax identification numbers. As for the information about buyers, you must specify their name, addresses, contacts, and tax identification numbers.
2. Delivery Details from Commercial Invoice
Aside from the shipping address, you must also provide delivery details in the invoice, especially if you have a logistic or export business. They include the delivery date, prediction of arrival, and the shipping service information (if you need other company to do it).
3. Merchandise Descriptions
The invoice must contain complete merchandise or goods descriptions. They include product names, dimensions and weights, grades, symbols and numbers or marks, quantities, and price per unit. You must also put clear information about the country of origin and currency used for the price quotations.
4. Related Additional Services or Goods
In export or logistic business, many shipments require special additional goods and services, which the business owners must provide. They involve assistance for damages, tools, engineering works, cleaning, securing, and many more.
5. Terms and Signatures
Business owners must provide information about the official trade terms. The invoice must also have an official signature, complete with the business owner’s name and date of the sign.
If there is other important info, you must describe it fully in the invoice. Depending on the nature of the business, they can mean license requirements, any certifications (especially if the destination country request them), official government-issued certificates, relevant law, and payment method.
Benefits of Making Invoice
Aside from its obvious status as a reimbursement form, a commercial invoice can offer other functions and benefits for the business owners. They include:
1. Insurance Claim Document
Business transactions do not always roll smoothly. There may be times when you need to deal with insurance companies when something happens with your goods. Commercial invoice is one of the documents required for insurance claim process and such.
2. Document Review from Commercial Invoice
Many customers need to have a formal invoice as a document to release a large fund from the bank. Without it, the reimbursement process will happen slower.
3. Requirement for Clearing
If you export goods, the typical regulation requests for certain formal form before releasing the products from custom. The commercial invoice is often the one necessary to clear the goods through custom.
Creating a commercial invoice is not just about a business requirement, but a requirement for the transaction. Make sure you invest in invoice software to create a professional-looking document.