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Invoice and delivery note

03.11.2023
Invoice and delivery note

Every entrepreneur or accountant knows the importance of proper business documentation. Among the many documents that we have to deal with in everyday life, invoices and delivery notes occupy a special place. But what are they and what are their differences?

The main characteristics of an invoice

An invoice is a document that reflects the data on the sale of goods or services. This document indicates information about the seller, buyer, characteristics of the goods or services, cost and other details of the transaction.
An invoice allows you to:

  • Reflect all the details of the transaction between the seller and the buyer.
  • Serve as the basis for accounting transactions.
  • Be the basis for calculating taxes and other mandatory payments.

Why do I need a delivery note?

A delivery note, in turn, is a document confirming the transfer of goods from the seller to the buyer. This document contains information about the quantity, characteristics and cost of goods.
The delivery note is necessary for:

  • Confirmation of the fact of transfer of goods.
  • Reflection of this operation in the accounting department.
  • Providing control over the movement of goods and materials.

What is the difference?

At first glance, an invoice and a delivery note may seem very similar documents. However, their functions and content are different. The main difference is that an invoice is a document of accounting and settlements, while a delivery note is a document of goods movement.

How to draw up these documents correctly?

In order to draw up an invoice and a delivery note, it is necessary to follow certain rules and requirements. First of all, it is important to take into account all the necessary requisites and information provided for by the legislation. In addition, it is necessary to pay attention to the design of the document, so that it complies with the standards and was understandable for all participants in the process.

Invoice or delivery note: what to choose?

Entrepreneurs are often faced with the question, which of these documents should be used in this or that situation? In fact, the answer depends on the specific circumstances. If we are talking about the sale of goods or services, you can’t do without an invoice. If we are talking about the transfer of goods, then in this case a delivery note is necessary. In any case, it is important to remember that each of these documents fulfils its unique function and plays an important role in business processes.

Universal Transfer Document: what is it?

UTD (universal transfer document) is a form of document which combines the features of both an invoice and a delivery note. This document was introduced in 2013 thanks to a letter from the Federal Tax Service in order to simplify the document flow for businesses. Thus, UTD allows you to account not only for items of goods, but also for value added tax (VAT) data. This certainly simplifies the accounting process and reduces the amount of paperwork required.

It is important to note that the use of UTD is voluntary. If a company decides to use this document when sending goods, it is recommended that this decision be recorded in the company’s accounting policy.

Invoice: the key tool for VAT accounting

The invoice is the key document used for VAT accounting. This document is necessary to record the details of the transaction and to calculate taxes correctly. Every taxpaying seller is required to issue an invoice for transactions that are subject to taxation.

In addition, the invoice can be issued not only when sending goods, but also in other cases, for example, when receiving an advance payment from the buyer. It is important to remember that the document must comply with all the requirements of tax legislation for correct VAT accounting.

The form of the invoice and the procedure for completing it are regulated by a decree of the Government of the Russian Federation. Starting from 1 July 2021, an updated form of invoice was introduced due to the introduction of a goods identification system. This change affected all taxpayers, even if a particular commodity does not fall under the identification system.

In general, invoice and delivery note are two key documents in trade and business. Their correct execution and use allows not only to ensure the legality of operations, but also to simplify the process of bookkeeping and control over the movement of goods and services. Every entrepreneur should be familiar with these documents and be able to draw them up correctly.

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