Help needed with Tax Invoice numbering

[paddyj]

Can anyone help me with some tax invoicing basics?

Just say I do a job for someone and they only pay me for half the job, I would send them a tax invoice like this:

Tax Invoice number: 1
Total $500
Payments received $250
Outstanding $250

Then when they pay me the outstanding $250 I would send them another one:

Tax Invoice number: ???
Total $500
Payments received $500
Outstanding $0

What Tax Invoice number would I put on the second invoice? Would it be invoice number 2 or would it just be an update of the first invoice, or does it even matter?

Paddy

[DANNY8]

Maybe put '1 of 2' (or 1/2), then on the 2nd have '2 of 2'(2/2). For the 2nd wouldn't the 'payment recieved' be $250 instead of $500? Otherwise the total payment recieved would be $750.

[minux]

Or you could just tell them you will receipt a deposit of $250 and raise an invoice after full payment.

[paddyj]

Not sure which way is easiest, it's hard because I do lots of jobs for them. Some they pay for straight away and others they drag out for months. Might just have to start using a separate invoice for each job.

[Struma]

I have only a rudimentary understanding of bookkeeping (my wife does our businesses books...) but it has been impressed on me most forcefully that I am only allowed to write ONE invoice per job.

So if I write a $500 invoice it is structured with the job total - $500, amount received (initially zero) and amount outstanding.

The client only needs one invoice, but if they are dragging their feet you can send them an UPDATED copy of the SAME invoice with revised figures - total - $500, amount received $250 and amount outstanding $250.

It is quite important that you do not write them a new invoice of $250, as this would be in addition to the exisiting $500 and will stuff up your books.

Alternatively you can create a seperate document titled STATEMENT.
On this form you can list current invoices, when they were written and how much is outstanding.
You can also put a section on this form which reads something like: Overdue: 0.00 ; Current: $250 ; Total: $250.

Hope this helps.

-E.

[ClairBear]

You would write out a receipt for payment, not an invoice. The receipt would record that it is payment for invoice number 1, so you can cross reference which invoices have been paid.

C.

[v8oz]

You send them something called remittance advice (or is this when you're paying someone?)

[Not_An_Abba_Fan]

It entirely depends on the book keeping system you use and if you are a GST registered business.

Invoice numbers are to help keep track of transactions, legally you don't need them to be numbered. But as said already, do a tax invoice for the full amount stating your terms on it ie: Strictly 30 days, or Strictly cash. Or put on there the payment terms you have agreed to. Then do a receipt for the amount already paid, and another receipt for the balance when it is paid. Keep copies of both receipts and the invoice.

[paddyj]

Thanks guys, I'm going to stick with one invoice per job and only issue receipts for partial payments.

Paddy