Offer is an informative document. The offer is not binding, the goal is to introduce the customer to products or services and prices. If you accept all the items listed in the offer, you can make the payment according to it.
Pre-invoice is a similar document to an offer. The main purpose of the pre-invoice is to call for payment. Even though the pre-invoice is not binding for payment, many consider it “more important” than the offer.
What the offer and the pre-invoice have in common is that they are not accounting documents. Neither the offer nor the pre-invoice allows you to recognize the stated VAT, which will be highlighted on the documents themselves. The seller is therefore obliged to issue a final invoice or an invoice for advance payments.
After receiving an advance payment of a part of the total amount of the invoice, either through an offer or a pre-invoice, the seller will issue an invoice for the received advance payment for the product/service. This is an important item if the seller is not able to issue the final invoice, and the tax period ends when he has to submit the report and pay the tax. The invoice for the advance payment is posted and the VAT shown on it is recognised.
After delivery, the seller issues a final invoice, cancels the invoice for the advance payment and states the amount of the advance payment on the final invoice. If you paid only part of the offer/pre-invoice, the seller will show the remaining amount for payment on the final invoice.
If you are not sure whether it is better to use an offer or a pre-invoice, choose an offer instead. It is simpler and customers feel more comfortable. Regardless of the document you use, don’t forget to number it and assign a reference number to make it easier to find your way among the many payments later.
FIRA takes over the numbering of the document number for you and automatically adds the IBAN and reference number and generates a 2d code that enables your customers to pay faster and easier.
Watch the video, how to create an offer, an invoice for the received advance payment and the final invoice in FIRA: https://youtu.be/0moHVTkrYJs
