Invoice: What It Is, Why You Need It, and How to Create One

An invoice is an official document issued by a seller or service provider to a client. It provides a detailed description of the goods or services purchased and the total amount due. In international trade, an invoice confirms the agreement between the parties and serves as an official accounting document that complements tax reporting. Companies working in international markets use invoices for customs clearance and legally transferring funds to bank accounts in Ukraine.

In Ukraine, businesses commonly use invoices as an alternative to a payment invoice, service delivery act, or consignment note.

Why Invoices Are Important

Invoices serve several critical purposes:

1. Confirming sales transactions

An invoice signed by both parties is a legally binding document. It can be used as evidence in court to resolve disputes.

2. Facilitating payments

An invoice acts as an official request to the client to transfer funds for goods or services. It includes all the necessary details for payment, such as the amount, description, and banking information.

3. Supporting accounting processes

Invoices serve as primary documentation. They are used to record purchase and sales transactions and calculate taxes based on the recorded data.

Can an Invoice Replace a Consignment Note or Service Act in Ukraine?

An invoice is a payment document. However, Ukrainian legislation lacks standardized requirements for its format. The only regulation concerning invoices is Article 43 of the Customs Code, which states that an invoice can be used as an exporter’s declaration regarding the origin of goods.

This means invoices cannot currently replace a consignment note or service act unless they are hybrid documents that include delivery or service details.

For hybrid documents, the invoice must include information about the seller shipping the goods and the buyer receiving them. For services, it should state that the full scope of services has been provided, and the client has no complaints. Hybrid documents are typically named accordingly, such as “invoice-consignment note” or “invoice-act.”

Invoice Language

Since there are no strict requirements, you can follow common practice and prioritize client convenience. For international clients, it’s best to prepare invoices in English with a Ukrainian translation. For domestic transactions, all documents should be in Ukrainian, adhering to national standards.

Types of Invoices

There are several types of invoices, each with its own specifics. While these classifications are more relevant in international trade, businesses in Ukraine primarily use two types:

? Proforma Invoice

? Commercial Invoice

How to Simplify Invoice Management with SendPulse

If you run an online business, you can streamline invoice management with tools from the SendPulse platform. In many cases, you won’t need a separate invoicing service. For instance:

? Website Builder: Create a website to sell goods or services, set up chatbots, and automate customer communication. Both the website and chatbots can integrate with payment systems. This allows you to accept payments with automatic transaction tracking, ensuring you’re always informed about your operations.

? Automation 360: Use the automation tool to send payment reminders via email, SMS, or Viber. Create workflows that automatically notify clients about unpaid invoices based on the overdue period. This reduces late payments and saves you time on routine tasks.

Example: Using SendPulse for Course Payments

Let’s imagine you’ve launched an online course on SendPulse and want to remind clients to make payments. Here’s how to organize the process effectively:

1. Store client data in CRM: Add client information to the SendPulse CRM automatically via chatbots or manually. Use the CRM to track course participants and payment statuses.

2. Set up trigger-based notifications: After a client registers for the course, the system will automatically send personalized payment reminders. Include the client’s name, the amount due, and a payment link.

3. Follow up on overdue payments: If the payment isn’t received by the due date, the system sends additional reminders.

4. Update CRM after payment: Once the client completes the payment, the system updates their status in the CRM, stopping further reminders.

With these tools, managing invoices and payment reminders becomes simple and efficient, helping you focus on growing your business.