Being precise is an incredibly important feature. Especially it is fare about invoice numbers. To be constantly aware of what is going on in your business you have to be incredibly organized and disciplined. Every invoice you conduct has to have a special number, a code if you want. It’s highly important to go numbering correctly and have a fixed system. Thus, you will be able to control all your accounting and won’t leave space for undesired confusions and fails.
As has been mentioned above, the invoice number is a special code. The entrepreneur is free to establish his own system and algorithm of how to do it. The main thing is that you have to be coherent about this and precise, of course. The main rule in filling in the numbering remains the observance of chronological order. In other words, the data is set in accordance with the appearance of the documentation. Renumbering is allowed though. Such a phenomenon becomes common if the company has been working for a long time. These periods may be quarterly, monthly or annual. It is worth noting that it is recommended to do this not more than once a month in order to avoid confusion.
Accroding to the information shared by Debitoor dictionary, the IN is an incredibly useful and necessary element in the accounting of the transactions your company does. Thanks to the original number of the invoice, it is always easy and simple to track all the deals and their state, the payment, and make the business clear and transparent to auditors, for example.
Because of the chronological order of the invoice numbers, there hardly arise questions about what and when has been done. Also, you will be able to easily find the information about this or that transaction, the data about the client and the time the invoice has been done. The tax authorities won’t have any unpleasant questions for you if you are sustained and organized in this matter.
There are no stringent restrictions about how exactly to form the invoice number. Here, you are free to do it how it is convenient for you. The only rules you must strictly adhere to are:
Applying to this technique, you have to build the invoice number relying on the base of your clients. To speak plainly, each customer has to have a special code and you add it to the numeric sequence. That’s how it will be very easy to specify every client by the unique invoice number which makes your work even easier and more understandable.
This mode implies the indicating of the type of the legit document you used for the operation. In case, it has been the invoice, add INV at the beginning of the number-code.
This solution is able to capture the invoice number directly from the OCRed text. Still, this option has its disadvantages because the invoice numbers don’t necessarily have the numeric format. And the program is unable to accept the code.
Sequential order is essential in the creation of the invoice numbers. There mustn’t be any repetitions, gaps and the numbers have to only increase. This is important.
It is customary to build an invoice number by adding a month or a year when it has been actually done. For example, in 2019 the first invoice in this year is possible to be numbered as “190001”, the subsequent ones should be “190002”, “190003 and so on. When 2020 starts, the invoices numbers are going to look like that — “200001”, “200002” and so on. If to adhere to this system, each and every invoice transaction will be easily tracked.
There’s one more important feature of the invoices codes. It will be best if you manage to build the specific code using not only the numbers but also other symbols, such as dashes, slashes, and letters. The thing which must be considered attentively there shouldn’t be present any gaps. Note that the main principle that all the numbers have to only increase sequentially stays valid. Plainly speaking, the part with letters and other characters must not change but only the numbers in the code. Thanks nowadays, there are different kinds of business software to manage the business. Such as ManageMart field service software has even the feature of creating invoices online within a couple of clicks and sending them to the customers directly from the account to the employees and customers. That can really save time and keep all the accounts in one place.
In case, you have a need to start doing your invoice codes with a different mode, you are obliged to wait until the end of the reporting period. Usually, this is the finale of the calendar year or, at least, of a quarter. It’s done for the omitting of confusion and unwanted problems with the unsatisfied customers and suppliers. If for some reason the INs are similar this also can be considered as frauding. So, we intensely recommend you to be very attentive and precise about this matter.
One more essential nuance is that no matter how you change the look of the code, all of them have to stay subsequent. What does it mean? If, for example, the last one looked like ‘089’, the new code has to have ‘090’ in it. It’s implied to make your transactions and legit documents legit and easy to work with for the auditing authorities.
You should be aware that naturally the INs deletion is considered as frauding. Each and every invoice transaction has to be present in your base. Although, there’s a possibility to cancel the operation without wrong consequences. If you’ve found yourself in such a situation, you have to issue a loan note for the same sum of money. So, your IN’s sequence won’t be hurt and there won’t be any loopholes in them which are incredibly important.
We hope this article has been useful and informative to you, and you’ve got the information you are looking for.