The proliferation of technology in business and more especially making payments has had an impact on invoicing in Italy. This applies to all invoices that are sent electronically, and e-invoicing is standard practice for small and established businesses, due to flexibility as well as immediacy. They are quicker, easier to create than the standard print invoices, and offer flexibility in that one does not have an office set up to create just a smartphone and internet connectivity.
Past due invoice
Past due invoice is another common type of invoice in Italy and it applies when there is a delay in settling a payment. It is normally sent after a final invoice has not been honored, and it is to act as a reminder and it includes the date when the final invoice was due as well as interest that the delayed money earns as a penalty for late settlement of payments. Normally when not honored, then collections agencies and auctioneers may be explored.
Pro forma invoice
In Italy, this has been referred to as a pre-invoice that is normally sent before a client finishes a certain job that has been agreed with a customer. It acts as a notification, on how much will be paid upon delivery of certain goods or execution of certain services. If there are goods that will be given away as gifts, then this explanation should be captured on the invoice, and it acts as a way of notifying the customer to be psychologically prepared to execute a certain payment.
Pro-forma invoices normally estimate the magnitude of the work that will be done, and how much the cost will be. It normally provides a commitment to do something, and the terms in this particular invoice can change as a project is underway.
In Italy, we have too, big projects that normally require that payments be made in small bits, due to the complexity of the projects as well as how big the projects might be. It helps payments for a particular project to be broken down into multiple payments to help in monitoring the progress of a particular project at the same time enable small companies and organizations to take up projects that may require huge sums of money to execute.
It is advantageous and preferred by small companies and constructors in Italy as one does not have to wait until a project is executed fully to receive payment, instead, money can be gotten from the interim interviews to cover costs and allow for sub-contracting when a particular project is huge.
This one originates from the business that is selling goods or offering services to a client as a way of requesting for payment of goods or services. The particulars of this particular invoice include a brief description of the product or service sold the quantity as well as the price. It serves as an official record of a sale to both the seller and the client.