An invoice is an official document that records the details of a transaction between a supplier and a buyer. It states the goods or services provided and the cost. It is used as proof of purchase and to request payment within a set deadline. Invoices are important for tracking financial transactions and maintaining accounting accuracy.
What are the requirements for an invoice?
In the Netherlands, purchase and sales invoices must comply with specific requirements, such as stating the name and address of the supplier and the customer, the date of issue, a unique invoice number, a description of the goods or services supplied, the price including and excluding VAT, the VAT rate and the total amount. This information is crucial for legal validity and includes aspects such as identification of the parties, description of the transaction and the VAT rate applied.
From invoice to booking
In a financial accounting system, purchase and sales invoices are carefully checked for accuracy and completeness before being processed. After this check, they are entered into the accounting system, with amounts allocated to the appropriate general ledger accounts based on the nature of the transaction. Payments are then made for purchase invoices and sales invoices sent to customers. Finally, the original invoices are carefully archived for future reference and possible audit by tax authorities or external auditors.
Invoice processing with TriFact365
TriFact365 digitises and automates invoice processing by using OCR technology and machine learning to scan and recognise data on purchase and sales invoices. This data is presented as a booking proposal. Where after checking the data, an entry is created in the linked accounting package. Manual input is thus unnecessary. Users thus have real-time insight into their financial data.