Different Types of EDI Invoices

EDI invoices are electronic documents used to communicate billing information between trading partners. 

Different types of invoices exist based on the nature of the transaction, industry-specific requirements, and the EDI standard being used. 

Below is an overview of the main types of EDI invoices:

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1. Standard Invoice

A regular invoice for goods or services delivered.

• Purpose: Provides details like item descriptions, quantities, prices, and payment terms.
• EDI Standards:
  • EDIFACT: INVOIC
  • X12: 810 (Invoice)
  • TRADACOMS: INVFIL

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2. Credit Note (Credit Memo)

Issued when a buyer is credited for a returned product, overpayment, or pricing error.

• Purpose: To adjust a previously issued invoice.
• EDI Standards:
  • EDIFACT: INVOIC with credit indicators.
  • X12: 812 (Credit/Debit Adjustment).

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3. Debit Note (Debit Memo)

Issued when the seller needs to charge the buyer for an additional amount not included in the original invoice.

• Purpose: To recover undercharged amounts or fees.
• EDI Standards:
  • EDIFACT: INVOIC with debit indicators.
  • X12: 812 (Credit/Debit Adjustment).

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4. Proforma Invoice

A preliminary invoice issued before goods or services are delivered, often used for customs or as a quotation.

• Purpose: Provides an estimate or declaration for the transaction.
• EDI Standards:
  • EDIFACT: INVOIC with proforma indicators.

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5. Self-Billing Invoice

Issued by the buyer on behalf of the supplier, often in industries like retail or automotive.

• Purpose: Simplifies invoicing in recurring or high-volume transactions.
• EDI Standards:
  • EDIFACT: INVOIC (self-billing setup).

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6. Consolidated Invoice

Combines multiple orders or shipments into a single invoice for convenience.

• Purpose: Reduces the number of invoices for high-volume transactions.
• EDI Standards:
  • EDIFACT: INVOIC with consolidated line items.

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7. Electronic VAT Invoice

Includes tax details in compliance with VAT regulations, especially in countries with strict tax reporting requirements.

• Purpose: Meets tax authority requirements for invoicing.
• EDI Standards:
  • EDIFACT: INVOIC with VAT segments.

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8. Corrective Invoice

Issued to correct errors in a previously sent invoice.

• Purpose: Fixes mistakes such as incorrect pricing or quantities.
• EDI Standards:
  • EDIFACT: INVOIC with correction indicators.

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9. Freight Invoice

Issued by logistics providers to bill for transportation or shipping services.

• Purpose: Details freight costs and associated charges.
• EDI Standards:
  • EDIFACT: IFCSUM (Freight Invoice).
  • X12: 210 (Motor Carrier Freight Details and Invoice).

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10. Utility Invoice

Used by utility providers to bill for services like electricity, water, or gas.

• Purpose: Provides consumption and charge details.
• EDI Standards:
  • EDIFACT: UTILMD (Utility Meter Data).
  • X12: 810 with utility-specific details.

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11. Customs Invoice

Required for cross-border shipments to provide necessary information for customs clearance.

• Purpose: Ensures compliance with import/export regulations.
• EDI Standards:
  • EDIFACT: INVOIC with customs-related segments.

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12. Advance Invoice

Issued before goods are shipped or services are rendered, typically for prepayments.

• Purpose: Secures payment before completing the transaction.
• EDI Standards:
  • EDIFACT: INVOIC with advance payment details.

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13. Rental/Lease Invoice

Issued for rental services like equipment, vehicles, or properties.

• Purpose: Bills for periodic rental or leasing charges.
• EDI Standards:
  • EDIFACT: INVOIC with rental terms.

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14. Subscription Invoice

Used for recurring services like software, memberships, or utilities.

• Purpose: Simplifies billing for subscription-based services.
• EDI Standards:
  • EDIFACT: INVOIC with recurring terms.

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15. Intercompany Invoice

Used within the same organization for transactions between different subsidiaries or divisions.

• Purpose: Helps track internal transactions for accounting purposes.
• EDI Standards:
  • EDIFACT: INVOIC with intercompany indicators.

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Key Benefits of EDI Invoices

• Efficiency: Eliminates manual data entry and accelerates payment cycles.
• Accuracy: Reduces errors in invoicing and reconciliation.
• Compliance: Meets legal and industry-specific requirements.
• Integration: Seamlessly integrates with ERP systems for automated processing.