Invoice Types

Read about types of purchase orders here

 

1.       Standard

An invoice from a supplier representing an amount due for goods or services purchased. Standard invoices can be either matched to a purchase order or not matched and it should be a positive amount invoice.

2.       Credit Memo

Credit Memos are memos from a supplier representing a credit amount toward goods or services. Credit memos are always negative amounts.

That is, it’s a negative amount invoice created by a supplier and sent to you to notify you of a credit.

3.       Debit Memo

An invoice you enter to record a credit for a supplier who does not send you a credit memo.

It is the negative amount invoice created by you and sent to a supplier to notify the supplier of a credit you are recording.

4.       Mixed

Mixed Invoices are invoices or credit/debit memos for which you can match to purchase orders and to other invoices. Mixed invoices can be either positive or negative values. However, you can only match a negative amount mixed invoice to a standard invoice.

5.       Prepayment

A prepayment is a type of invoice you enter to make an advance payment to a supplier or employee. For example, you need to pay a deposit on a lease, or pay an employee an advance for travel expenses. You can later apply the prepayment to one or more invoices or expense reports you receive from the supplier or employee to offset the amount paid to them.

You can enter two types of prepayments: Temporary and Permanent. Temporary prepayments can be applied to invoices or expense reports you receive. For example, you use a Temporary prepayment to pay a hotel a catering deposit. When the hotel’s invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay.

 Permanent prepayments cannot be applied to invoices. For example, you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced.

6.       Expense Report

Expense Report is an invoice representing an amount due to an employee for business-related expenses.

7.       Withholding Tax

An invoice you enter to remit taxes withheld to the appropriate tax authority.

8.       Retainage Release

An invoice created for complex work and advance contract financing.

9.       PO Price Adjustment Invoices

PO Price Adjustment Invoices are for recording the difference in price between the original invoice and the new purchase order price. PO price adjustment invoices can be matched to both purchase orders and invoices.

For example, if a supplier sends an invoice for a change in unit price for an invoice you have matched to a purchase order, PO Price Adjustment Invoices can be used to adjust the invoiced unit price of previously matched purchase order shipments or distributions without adjusting the quantity billed.