Original Invoices in Singapore
An original invoice is the first version of the invoice that has not been modified or edited. In other words, the original invoice contains the same content and details as when it was first generated. Let us now discuss how the original invoice is generated.
How the Original Invoice is Generated?
Following are the steps which are taken to generate an invoice:
Obtain and review the source documents: The first step in invoice generation is to collect all the source documents. These documents include, but are not limited to, trade agreements, purchase orders, dispatch notes as well as others. Indeed, different source documents can be used, depending on the nature of the business. Take for example, a service-oriented business. They will be able to use time sheets, also known as time logs, as a source document to generate the invoice.
Input content or details in the invoice: The next stage involves the copying of details into the invoice from the source document. For instance, the quantity detailed on the purchase order or dispatch note can be copied into the invoice. Another example, is when the agreed rate can be copied from the purchase. Likewise, hours to be billed can be copied from the time sheets or time logs.
Generate the invoice: Once all the complete input and source information are collected, the second step is to generate the invoice. Here, it is crucial to make sure that the content and details of the invoice should be the same as those which are on the supporting documents.
Attach supporting documents: Next, the relevant supporting documents are attached to the invoice. This is done to enhance the overall credibility and completion of the invoicing record.
Review the invoice for accuracy: Next is reconciliation. This means that the content of all the different documents, such as the invoice, purchase order, agreement or contract, time sheet or time log, needs to be compared and reconciled. This also helps to ensure the accuracy of the invoicing system.
Maintain the original invoice content: The record keeping of the original generated invoice must be well updated, sorted as well as organized. This is essential in order to ensure the maintenance of the original invoice content and source documents.
Track revision to spot the original invoice: As mentioned, the original invoice is the first version of the generated bill. Thus, it is important to ensure that a complete and accurate original invoicing record is maintained. This enables the records to be tracked in a timely manner.
The original invoice is based on primary source documents which have not been altered or changed. Therefore, if there are any subsequent changes in the supportive record, this will need to be tracked. In fact, in terms of audit, the invoicing record is one area in which the consultants and auditors like to pinpoint to review. They will scrutinize and review the invoices in order to test the completeness and accuracy of the financial statement, which is prepared by the business. In addition, the credibility of the invoicing record can be maintained by tracking changes in the original invoice.
Next will be a discussion on how original invoices can be tracked.
How to Track Changes in the Original Invoice
The following shows how changes in the original invoice can be tracked:
Maintain an activity log: The activity log should clearly mention each change in the invoice as well as the related support. In addition to the changes, the log should clearly define the sources that generated the changes.
Ensure change approval: It is important to ensure that any changes in the invoicing record are backed by appropriate approval. Copies of the approval should also be attached to the record.
Keep an eye on the invoice versions: Each updated version of the invoice should be clearly cited, in terms of the changes made. Further, in order to ensure appropriate tracking, the invoice versions should be organized, sorted, and kept in order.
Conclusion
In conclusion, an original invoice is when an invoice and invoicing record are maintained in their original form without having any modification or changes. To make up the original invoice, it is generated by using original source documents including purchase orders, contracts and agreements, dispatch notes, as well as other related documents. The original source documents should be attached to the invoice. This helps to ensure the completeness and accuracy of the invoicing system.
CREATE INVOICE ONLINE
Invoicing Tools for Singapore: