Turkey is known to be supporting its own people through awarding big projects to small companies provided they have the capacity to execute those projects to completion. This also gives an opportunity for contractors to have some capital in the execution of projects minus stopping due to a lack of finances to ensure that projects are executed within the agreed timeframe.
The project is normally subdivided into milestones, and there is an agreement on how much to pay after each milestone is completed. On completion of each milestone, an interim invoice is raised to enable the contractor to plan for the next phase. This has advantages for both contractors and clients.
On the side of contractors, even small companies can bid for big projects that require lots of capital to execute. On the side of the client, there is the monitoring of the work that is being done in comparison with the amount of money that is channeled for the process. Even after finishing, the contractor receives the last funds to be able to invest in the next project.
In Turkey, there are bills and expenses that are incurred periodically and the bill is the same but charged periodically. The best example here is house rent and membership in certain clubs for example fitness clubs. The bill remains the same on a monthly basis, and there is a prevalence of paying the same on a monthly basis. To foster a good relationship between the service provider and the client the service provider will raise an invoice within the most convenient dates so that a payment is made.
In Turkey, the most common businesses that prefer recurring invoices include online software businesses, water providers, electricity providers, cellphone bills, gym membership, utilities and magazines, and newspaper subscriptions. Recurring invoices are preferred for the services mentioned because of convenience reasons.
In Turkey, a final invoice normally follows the interim invoices once a project has been finished. This is sent to first notify the client that the work agreed upon has been done successfully, and two it serves as a demand for funds following the work that has been done. In Turkey it is a requirement that final invoices are sent online, that is if the client is available online, to notify the client to inspect the work done in good time and prepare to pay in good time.
Past Due Invoice
In Turkey and this is also common in a number of countries, customers may fail to honor submission of payments within the agreed time due to a number of reasons, that are considered to be out of the agreement established between the two parties. Any reason raised after this, maybe considered just an excuse, as it is expected that both parties should be in agreement when a service is being offered or goods being delivered.
It is required that the seller or provider is under obligation to remind the customer that there is a delayed payment considering the agreement between the two parties. The past due invoice normally contains all the information that was contained in the final invoice, and it may include a fine or interest accrued due to failure to honor the final invoice or for the delay that has been caused to reasons known by the customer. This type of invoice is also noticed towards the customer in that if not honored, the customer may be forced to solicit for services of debt collection agencies and this too has a financial implication attached to it.
It is a requirement in Turkey that we have an estimation invoice that is sent to the seller or buyer to act as notification for shipment or delivery of services. Details in regards to the number of goods, their value, the weight of the goods, the transportation means and charges. When it comes to importation,
Pro-forma invoices are very important for customs purposes and the determination of taxes that are to be remitted. They primarily serve as a quote that is required by a buyer to make an application for an import license, contract for pre-shipment inspection, open letter of credit or arrange for the transfer of hard currency. Pro-forma invoices are required to inform the buyer and the appropriate import government authorities’ details of future shipments, and there shouldn’t be any changes made minus consent from the buyer.