Filling in an invoice so the payment goes through: fields and errors

The supplier issues the invoice, but it is checked on your side: by the agent, by the bank where the contract is registered, and later by customs. An error in an invoice rarely breaks a deal. But it stops the payment at the check and adds correspondence. Below are the fields that are checked first, and the typical errors. What an invoice is in general is explained in the glossary: invoice.

Proforma and commercial invoice

A proforma invoice is issued before shipment. It is used to pay an advance or full prepayment. A commercial invoice is issued at shipment and travels with the goods. Its data goes into the customs declaration.

For services, the invoice works the same way, but instead of goods lines it contains a description of the service and the period in which it was provided. Such a payment is closed not by a customs declaration but by a completion certificate.

Either one works for a payment. What matters is that the amounts reconcile: the advance under the proforma plus the balance under the commercial invoice equal the value of the delivery. If there are several proformas, each should show which part of the delivery it relates to.

Header: parties, number, date, contract

• Seller. The supplier’s full name in Latin script, as in the contract and as held by the bank. Address, country, registration number, if there is one.
• Buyer. Your company: name in Latin script, address, INN (taxpayer number). The buyer is you, not the payment agent. The agent pays on your behalf as a third party and is not named as the buyer on the invoice.
• Invoice number and date. A unique number, so that it can be referenced unambiguously in the payment order.
• Contract reference. The contract number and date, and, where needed, the specification. Without the reference, it is hard for the bank to link the payment to the registered contract.

Goods and money

• Description. Be specific: model, item number, purpose. “Spare parts” or “goods” will raise questions at any bank. The description must match the specification to the contract.
• Commodity code. An HS or TN VED code is not always mandatory, but it speeds up the agent’s check.
• Quantity, unit of measure, unit price, line total. The arithmetic must add up to the cent.
• Total and currency. The invoice currency matches the contract currency, or the contract expressly allows another one.

The invoice total must not exceed the contract amount. If it does, an amendment is signed first, and only then is the payment made.

Delivery and payment terms

• Incoterms. The delivery basis and place: for example, FOB with the port named, or CIF. The basis determines whether freight and insurance are included in the price.
• Payment terms. Advance, balance, deadlines. If you are paying part of the amount, it helps to state the percentage and the amount due on the invoice.
• Bank charges. Who pays the intermediary banks’ fees. If this is not agreed, the supplier may receive less than the invoice amount and ask for a top-up.

Beneficiary bank details

The bank details on the invoice must match those in the contract. If they have changed, you need an amendment or a signed letter from the supplier.

• Beneficiary name. The account holder’s name. Exactly as held by the bank, without abbreviations.
• Beneficiary address. The beneficiary’s address.
• Account number or IBAN. The account number. In countries that use IBAN, the IBAN is required.
• Bank name and bank address. The name and address of the beneficiary’s bank.
• SWIFT/BIC. The code of the beneficiary’s bank, not of the intermediary bank.
• Intermediary bank. The intermediary bank, if the supplier specifies one.

The supplier does not write the payment purpose on the invoice, but it affects how quickly the payment clears the checks. It is convenient when the invoice has a line such as “Payment for … under contract No … dated …, invoice No …”. It is copied into the payment order to the agent unchanged.

Each detail is covered in IBAN, SWIFT/BIC and beneficiary details.

Abroad, the supplier’s signature and stamp are not mandatory everywhere. But agents and Russian banks often ask for them, so it is better to get a signed copy straight away. Language: English or bilingual. An invoice only in Chinese or Turkish will have to be translated.

Errors that stop a payment

1. The beneficiary name on the invoice differs from the name in the contract. For example, the contract is with a factory, but the account belongs to a trading company. You need a document explaining why the payment goes to a different company.
2. The bank details were sent by letter and do not match the contract. This is also a common sign that fraudsters have substituted the account.
3. The invoice currency does not match the contract currency.
4. The invoice amount, together with previous payments, exceeds the contract amount.
5. A vague description of the goods that cannot be matched to the specification.
6. There is no contract reference, or it points to a different contract.
7. The beneficiary account is held by an individual, while the contract party is a company.

Each of these errors is cheaper to catch before the roubles are debited than to explain during a check at the beneficiary’s bank.

VEDmost checks the invoice against the contract and the bank details before preparing the payment order. If a document needs correcting, we say so at the start, not after the payment has been returned. More on the Invoice payments page. The documents you receive for each payment are described in the Documents section.