6 different types of online invoices


An invoice serves as a record of a sale, providing both parties with the transaction details such as the date that the service was rendered or the good was purchased, as well as the cost charged to the client or customer.

There are different types of online invoices and each type serves a specific purpose.

In this modern-day and age, the process of invoicing is already made more convenient and seamless, all thanks to the advancements in modern technology. Now, there is already an invoice software that introduces templates that pave the way for a speedy process of creating invoices, particularly for recurring billing of repeat clients and customers. Additionally, these accounting software solutions generally have the capacity to accommodate several types of online invoices. However, to get a better understanding of the overall online invoice process, it is best to delve into the different invoice types to be able to guarantee that you are using the correct one that best fits your needs.

1.   Standard Invoice

A standard invoice is the most common type of invoice prepared by a business for a client or customer. The format of a standard invoice fits a wide range of industries because it is very much flexible in terms of the details that can be contained in the document. Nevertheless, a standard invoice should at the very least contain the name and contact information of the business as well as the name and contact information of the client. It should also include the payment details itemizing the products or services purchased or acquired by the client, as well as the cost of each. In addition to this, it must also be serialized by an invoice number.

2.   Credit Invoice

A credit invoice is often referred to as a credit memo. When a business needs to provide its clients with a certain discount privilege, a credit memo is issued rather than a standard invoice. Aside from discount privileges, a credit memo is also used when a business needs to offer a refund to their customers, or when they need to correct a particular error they made to a previous invoice. As such, a negative total is often seen in a credit memo.

3.   Debit Invoice

Much like a credit invoice, a debit invoice is also often referred to as a debit memo. But on the contrary, a debit memo is issued by a business that needs to increase the charges they made to their clients or customers. This may be because of certain adjustments made on the project which are not encompassed in the initial estimates made. It can also be that the client purchased additional products and for traceability purposes, a debit memo is issued rather than a new invoice. A debit memo often reflects a positive total amount, indicating that the business needs to claim more from their customers.

4.   Pro Forma Invoice

A pro forma invoice is usually sent before a project begins, or before products are delivered. This is because a pro forma invoice is an estimate of how much a certain service or product would cost a client or a customer. Oftentimes, a pro forma invoice is modified after the completion of a project, or once the final products are delivered to the customer in order to reflect the total amount that needs to be billed from them. The modifications will also reflect the actual work hours accumulated to render the services, as well as the total cost after the products have been delivered.

5.   Timesheet Invoice

A timesheet invoice is usually for the internal purposes of a business or a company. It documents the number of work hours that the project members rendered over the duration of the project completion to be able to get paid based on these hours. Hence, it is a document that is within a business or a brand and its workers or contractors, rather than between the business and its clients. However, there are also certain professions that use a timesheet invoice to bill their clients such as lawyers, creative agencies, business consultants, and even psychologists.

6.   Recurring Invoice

A recurring invoice is very beneficial to businesses that charge their clients with the same amount repetitively over a certain duration. For instance, a binding contract may indicate the need for a client to pay the business a certain monthly fee for services that need to be rendered on a monthly basis too for a duration of a year. Recurring invoices are common for freelance digital marketers, or IT professionals who offer a certain service package that will transpire over a certain duration. However, they need to be paid periodically for the services they already provided. It is in a recurring invoice wherein cloud-based invoicing software like GetYooz proves to be most beneficial because of the automated process of invoicing.

Other Types of Online Invoices

Apart from the six main forms of online invoices mentioned above, there are several other forms of online invoices that likewise are beneficial to a business or an individual rendering services or marketing products.

  • Mixed Invoice. This is usually a combination of a credit and debit memo wherein both the business and the client owe each other in terms of discounts, refunds, and increases in payments to name a few.
  • Commercial Invoice. This is usually an invoice that is issued by a business when it sells goods in an international market.
  • Expense Report. An expense report is also an invoice but it is between the employer and the employee, which is primarily for the reimbursement of the expenses incurred by the employee for business-related needs.
  • Interim Invoice. An interim invoice is prepared to accommodate multiple payment terms, particularly for large projects that incorporate several milestones.

Final Word

Overall, online invoices are often referred to as e-invoice, regardless of the specific type of invoice prepared. This simply means that the invoices are electronically sent to the clients, which makes the entire invoicing process more efficient. As a result, you are paid promptly for your products and services.