Progress invoice
This involves billing a client incrementally for the percentage of work done of the total work agreed on. This is very common with projects that last longer and allows the contractor or the person paying to fund the project as the project continues.
The invoice normally shows the agreed amount for the contract, how much the client has paid and which dates the amount was paid, and even what the funds were meant to execute. Then it will show the percentage of the work that has been completed as at that time, the amount due, as at the time the invoice is presented, and the total outstanding amount that ought to be paid at the completion of the project.
For progress invoicing to work, the client and the contractor ought to agree on the payment schedule and this is very useful for long-term projects whose budgets are huge. This helps in monitoring and evaluation of projects
Credit Invoice
This is the second most common type of invoice in Spain and it is normally given for a variety of reasons as discussed below. At times a customer may receive a consignment of goods, but they might not be delivered in the form of which they were purchased, in this case, it will prompt the seller to issue a credit invoice.
If the goods are not used completely maybe they were not the ones ordered for then the seller is under obligation to issue a credit invoice worth the number of goods returned. When a customer is not satisfied with a particular service rendered, then the customer and the client have got to agree on the percentage that the customer will be entitled since the service has already been rendered. This is meant to foster good customer relationship between the buyer and seller.
Debit Invoice
This is closely related to the credit invoice, but issued for different reasons, but the fundamental reason for offering the same is to foster customer relations. It may be issued in cases where a customer misses a deadline for an early payment discount and it will deduct the discount, and the seller will issue a debit invoice for the amount offered as a discount. It also applies in cases where the seller decides to prepay freight charges for the customer, the seller will issue a debit invoice for the freight charges.
It also applies to the service industry where a client will ask for additional services after placing for an order, the seller will issue a debit card to cover for the additional cost. Banks in Spain too issue Debit Invoices to notify their customers about charges for loan payments, interest, bounced check fees, DDA debit as well as credit charges.
Past due invoice
Past due invoice is another common type of invoice in Spain and it applies when there is a delay in settling a payment. It 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 hired, then collections agencies and auctioneers may be employed.
