In Switzerland, the element of charging customers automatically for agreed goods and services periodically is very common. The most common type of invoice is that for utilities that are met on a monthly basis, and normally company agents have agreed with customers to be issuing the invoices periodically to foster a good relationship between the service provider and the customer.
In Switzerland, this applies mostly with online software businesses, water providers, power providers, cellphone bills, utilities, gym membership, and magazine subscriptions. They are preferred for the services mentioned above because of convenience reasons.
This is very common in Switzerland for small companies and organizations which take big projects that require lots of funds in finishing the same. This more especially applies to government projects.
The company will be forced to break the big project into multiple payments then proceed to subcontract and will issue interim invoices on completion after some milestone so that they can be funded to execute another milestone.
This has its own advantages that even small companies can bid for big projects that they do not have the monetary value to support the projects, and it does not allow the completion of the project to ask for a payment.
This type is also common in Switzerland as it is a follow-up on the interim invoices. This is to let the customer know that the work that was agreed on has been satisfactorily executed. This is different from a pro forma invoice in that it is sought of a demand for payment for services or goods delivered. Most of the final invoices are sent online so that payments can be rendered in good time to reduce instances of collections problems and so that can have funds to execute another project.
Past Due Invoice
In Switzerland sometimes customers may be unable to honor payments that are due within the time agreed due to a number of reasons. The seller or provider of the facility may be delayed for other activities and will be forced to remind the customer again that the due dates agreed on have passed.
A past due invoice normally includes all information in the final invoice, with a late fee or an interest penalizing the customer for delaying the payment. In cases where the past due invoices are not paid then citizens of Switzerland are encouraged to impose fines, and where it does not work then they will employ debt collection agencies, and this will have financial implications.
Pro forma invoice
A pro forma invoice is given out before completing a transaction or particular work to notify the customer on how much is supposed to be paid once a good is delivered or a service is performed to completion. At times it is also used to estimate the value of goods that someone will give out as a gift. When used in offering a service it acts as a commitment to offer something or provide a service to completion, and at times the value indicated on it can change due to market changes.