The invoice total due amount element is as important as all other elements within an invoice. It is used to provide the client with the entire amount of payment due for provided goods are services.
Usually, you would want to boldly highlight the total due amount to ensure that you catch the attention of your client about their obligation. The total due amount depends on the total cost per item, subtotal, list of fees (taxes, shipping, handling fees), and more. Depending on the software used to generate the invoice, you could calculate the total due amount either manually or automatically.
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Total Cost per Item and Subtotal
Using an automated invoice generating software would simply allow you to generate the total cost per item based on the number of items and the unique identifier code. As you input more the quantity of more items and corresponding unique identifier code, the software automatically generates a subtotal. The subtotal provides the total cost of purchased items before the inclusion of taxes, handling charges, and other charges.
Total Due Amount
The total due amount is dependent on the subtotal and other additional charges. You can also generate this value either manually or automatically while using an invoice generating software. As stated earlier, you would want to highlight the total due amount so as to attract the attention of your clients. The total due amount would usually be just below all other calculations.
Additionally, the total due amount is affected by different types of deductions. If your client is a frequent buy or you are running a promotion, you would first deduct a discounted percentage before generating the total due amount. Also, if your client has made an earlier deposit or advance, you would usually deduct the value before generating the total due amount. Moreover, the total due amount may be affected if you generate the invoice as an installment invoice.