Dealing with this volume in a manual operation was causing several problems. Invoice processing was extremely paper intensive; a considerable amount of time and effort was spent data inputting, chasing paper invoices and filing. It was often difficult to locate invoices and the AP team would waste time contacting the business users to trace invoices. This resulted in a lack of efficiency and a lack of control over the process. There had also been an issue of making a number of duplicate payments.
Proforma invoices basically contain much of the same information as the formal quotation, and in many cases can be used in place of one. It should give the buyer as much information about the order as possible so arrangements can be made efficiently. The invoices inform the buyer and the appropriate import government authorities details of the future shipment; changes should not be made without the buyer's consent. As mentioned for the quotation, the points to be included in the proforma are: 1.Seller's name and address 2.Buyer's name and address 3.Buyer's reference 4.Items quoted 5.Prices of items: per unit and extended totals 6.Weights and dimensions of quoted products 7.Discounts, if applicable 8.Terms of sale (include delivery point) 9.Terms of payment 10.Estimated shipping date 11.Validity date
Electronic invoices encourage organizations to discontinue the use of paper invoices, replacing them with a digital version of an electronically_generated tax document, which has the same legal validity as the traditional version and preserves a faithful record of all commercial transactions. In this way, the entire billing process can be administered electronically. However, it is important to remember that amount of Value Added Tax must be included on every Invoice.