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What is a stock invoice in the Czech Republic?

What is a stock invoice in the Czech Republic?

When dealing with finance and accounting issues, it can sometimes be difficult to navigate the multitude of technical terms. One such term is ‘invoice in lieu’. But what exactly is it? In this article, we will look at a detailed explanation of this term and its practical application in business relationships.

The history of invoice backup

Let’s start from the beginning. The history of invoice backup dates back to the Middle Ages, when merchants were looking for a way to secure their business transactions. Imagine a situation where a seller has shipped goods but the buyer has not yet paid. It would have been risky to expect payment after the goods were delivered, so they started using invoices as a way to secure payment.

The function of invoices in modern commerce

Today, invoices have become a common part of business transactions. But how do they work in the modern business environment?

A backup invoice is essentially a document that is issued by the seller to the buyer before goods are shipped or services are rendered. This document requests payment (in part or in full) in advance. Once payment is received, the seller acknowledges receipt of the money and then makes delivery of the goods or service. Once the transaction is complete, a final invoice is issued which includes all costs and deducts the deposit already paid.

Advantages and disadvantages of advance invoices in the Czech Republic

Like any other financial instrument, there are advantages and disadvantages to invoices in advance.


  • Protection against the risk of non-payment: the seller is assured of receiving at least part of the money upfront.
  • Better cash flow: Businesses can have better liquidity thanks to the money received in advance.
  • Flexibility: It allows the seller and buyer to negotiate payment terms according to the needs of both parties.


  • Customer distrust: Some customers may be apprehensive about paying upfront.
  • Accounting Complications: Proper accounting for stock invoices can be complicated.
  • Legal Risks: In the event of disputes, it may be harder to prove that goods were not delivered if a back-up invoice has been paid.

How to correctly issue a stock invoice?

Issuing a stock invoice requires certain information and procedures. In addition to the standard information such as the name and address of both parties, invoice number, date, etc., the invoice should include:

  • The amount of the pledge: how much is to be paid in advance.
  • Details of the goods/service: A brief description of what will be delivered or provided.
  • Terms of payment: By when the advance must be paid.
  • Link to final invoice: Information that a final invoice will be issued once the transaction is complete.

Invoice for advance payment in different countries

Although the concept of the imprest invoice is universal, the way it is used and regulated in different countries may vary. In some countries there may be specific legal requirements regarding the issuing and charging of invoices in lieu of invoices. Therefore, it is always a good idea to consult a specialist in the area or check local laws and regulations.

Warehouse invoice application in the Czech Republic

A warehouse invoice is a specific type of document that plays an important role in logistics and warehousing. Compared to the stock invoice, it is mainly concerned with transactions relating to goods stored in certain magazines or warehouses. Where does the warehouse invoice find its application?

  • Internal inventory control: it allows companies to track the movement of goods within their own warehouses.
  • Third-party warehouse operations: If a business outsources warehousing to another company, a warehouse invoice can serve as proof of receipt or issue of goods.
  • Long-term storage: In situations where goods are stored for a longer period of time (e.g. seasonal goods), this type of invoice records all relevant information about the goods stored.
  • Bonded warehousing: In international trade, a warehouse invoice can be used to show what has been stored in a bonded warehouse before the goods are released for free circulation.
  • Damage or loss record: When goods are damaged or lost in a warehouse, the warehouse invoice can serve as an official document to support a claim or insurance claim.

As we continue to explore the world of finance and accounting, keep in mind that understanding tools like stock invoices can be the key to successful business decision making.