Seller's Invoice

Arguably the most important document in the cash gathering process is the seller's invoice. An invoice is a document notifying the buyer of an obligation to make a payment. An invoice may be in the form of paper, or it may be in electronic form.

Your company's invoice should make it as easy as possible for the customer to issue payment. A well-designed invoice will:

1. Clearly state the fact that it is an invoice.
2. Prominently list the creditor's company name.
3. Prominently list the creditor's remittance address
4. Accurately describe the products shipped
5. Clearly show the price per item
6. Accurately reproduce the customer's purchase order number (which is the customer's point of reference)
7. State the total dollar amount of the invoice
8. Separately list the dollar amount of any cash discount offered, and clearly state the date payment must be received by in order to earn the cash discount
9. Provide a separate line for sales tax (if the item sold is taxable)
10. Provide a separate line for freight charges (if freight charges are to be added to the invoice)
11. Include the creditor's telephone number if the customer has questions or concerns about the invoice
12. List the seller's terms and conditions of sale.

Source: Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore.