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What Is A Commercial Invoice?

A commercial invoice is just like any typical sales invoice that clearly describes the total amount of goods sold, together with the total amount due that needs to be compensated by the customer. This legal document is also one of the document basis used by customs to determine the real value of the imported goods and to asses different taxes and duties. A typical commercial invoice should include the buyer and seller name, date and terms of sale, quantity, weight, and volume of the shipment, and the detailed description of the goods.

How to Create a Commercial Invoice

With a better understanding of how important a business invoice or commercial invoice are in business operations and transactions, then it would be probably better if you'll also learn how to make them. Well, look no more because that's what this article is all about. Showcased below are some helpful guide tips on how to make a professional and credible commercial invoice, read and apply them rigorously.

1. Provide Complete Details

First, you have to provide the necessary details that need to be filled out in a typical commercial invoice. Start with the basic details like the name and business logo, business address, tax ID, and contact number. These details are the most important part of the commercial invoice and should be provided with factual information only. Make sure that no single word or letter are misspelled to avoid delay and confusion with your imports and exports.

2. Draft & Arrange Them Accordingly

If it's your first time making one, then it would be best if you draft a layout first of how should you construct and arrange the details that need to be included in it. To give you a better overview, you may opt to look for some commercial invoice examples online to make sure that you will be guided on how to create it logically and systematically.

3. Describe Included Items

A commercial invoice is just like any simple receipt, but their difference is that commercial invoices include a detailed description of all the goods purchased. This includes a brief description of the intended use of each item, country of origin, quantity of each item, and the unit of measurement used.

4. Make Use of Pre-Formatted Templates

Since a commercial invoice is not too particular with its design just like a service invoice, you'll probably think that they are also easy to develop. Well, creating them from scratch can be more challenging than you think. So to guide you, it would be better if you optimize a ready-made and fully editable commercial invoice template. In choosing, you have to be very particular with the template details. Choose a template that supports both Google Docs and Sheets, and most importantly, an invoice template that is pre-formatted already with Excel formulas and functions.

5. Affix Signatures

Just like a travel invoice, your commercial invoice also requires signatures with it to make it valid and legal. This is one of the requirements when it comes to importing and exporting goods across international borders because this will serve as a Declaration statement along with other import and export license numbers.

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