A chargeback invoice describes an invoice that allows you to minimized the amount of money you owe to service providers. When the amount on an invoice exceeds what is on the purchase order, a chargeback invoice is created and sent to the service provider. The created chargeback invoice would contain a reduction in the money owed to the supplier. Also, the exact reason for the reduction would be stated on the chargeback invoice. In essence, the chargeback invoice allows you to pay the extra amount owed before the service provider demands for it through a credit correspondence.
If, for instance, you agreed to buy 4 number of computers at the rate of $250 per item at a total of $1,000. After the items are supplied, you receive an invoice with a rate of $260 per item and a total of $1,040. You would produce a chargeback invoice of $40, which would account for the difference between the purchase order cost and the cost on the invoice. A generated chargeback invoice allows you to shift responsibility onto the service provider.
Chargeback Invoice Fields
A valid chargeback invoice would usually have several fields for relevant information. These fields are:
The company that writes the chargeback invoice would want to include their company’s information. Such information includes company name, logo, address, and contact number. This information can be written within the header or the main body of the chargeback invoice.
The vendor information is also provided on the chargeback invoice. This information is the name and contact address of the vendor. Also, the vendor’s billing address, if appropriate, is included.
List of Items
The complete details of owed money would be documented with details of corresponding items. The total number of supplied items is also captured in the chargeback invoice.
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How to Create a Chargeback Invoice
Like all other invoices, you would require some software application to generate a chargeback invoice. The software could be generic or specific, and each offers you similar options. Therefore, any software you decide to use would help you to create a chargeback invoice.
Producing a chargeback invoice involves these steps.
Create a Header
Within the header of this invoice, you would want to write the title of the document (chargeback invoice) written at the center. You may also want to include a logo within the header.
Input Vendor Information
You would want to include the vendor’s information below the header, which includes name, address, and contact information of the company.
Input Company Information
You would also want to include your complete company’s information. This information can be written within the header or the footer.
Input Owed Amount Details
You would want to input the difference between the purchase order cost and the cost on the invoice in an itemized form within a tabular structure.
Here’s the list of main invoice fields:
- Company information
- A unique identifier, date, and invoice number
- List of items and services
- Terms of sales
- List of fees
- Total due amount
Useful resources about invoices:
- How to Create an Invoice
- Tips to Customize your Invoice Templates
- Differences Between Bill and Invoice
- How to Create Invoice With/Without Logo
- How to Create Invoice With/Without Discount
- How to Create Invoice With/Without Tags
- Bill-Only Requisitions
- Payment Requisitions
- Purchase Orders
- PR vs PO
- Tax Invoice
- Chargeback Invoice