There are many small and critical aspects of writing a good and complete terms and conditions on sales invoices, such as:
Use of simple, polite, and straightforward language.
Mentioning the complete details of the firm and the client.
Complete details of the product or service, including taxes or discounts.
The reference number or invoice number.
Mentioning the payment mode.
In addition, there are best practices which when followed or used can make things simple and faster. These are:
Clear demarcation of terms of sales will wipe-out any potential chance of misunderstanding or disagreement from any of the parties. Hence, it is of utmost importance to mention the terms of sales like- cost, quantity, single unit cost, delivery date or time of service, payment method or credit, if any.
This is most important during cross-border transactions or deals. Mentioning the “responsibility” of international taxes, duties, or any other regulation makes the payment process trouble-free.
It is one of the most usual payment terms, where the service provider asks for full or partial payment before the delivery of product or service. This is prevalent in the service industry and is followed to avoid after-sales non-payment recovery. It is practiced to avoid out-of-pocket expenses to finish the project.
Usually written as “PIA”, it must be incorporated if followed by the business firm and similarly, the client ought to look out for such things mentioned on the deal.
The service provider demands the payment immediately after the delivery of the product or service. It is often referred to as “Cash on Delivery” (COD), or sometimes Payable on Receipt. In the absence of adherence to the term, the deal or delivery is taken as canceled or void.
Mentioning this term or condition is important as the client may be annoyed if such a condition is not mentioned.
The standard terms and conditions define the consequences of non-compliance in payments. For example, in case the payment is delayed, an interest of 10% per month is chargeable.
To better the relationship between the supplier and the customer, it is of utmost importance to educate the customer on overdue payments and their subsequent consequences. There is no harm in mentioning the late payment conditions in your agreement as –
They remind the client of the due date.
Compensate your financial cost due to delay.
Improves the overall payment time and process.
