{"id":196777,"date":"2023-06-02T09:39:16","date_gmt":"2023-06-02T07:39:16","guid":{"rendered":"https:\/\/easy-software.com\/?p=196777"},"modified":"2025-02-28T14:21:12","modified_gmt":"2025-02-28T13:21:12","slug":"the-most-important-requirements-for-verifying-invoices-correctly-including-a-checklist","status":"publish","type":"post","link":"https:\/\/easy-software.com\/en\/newsroom\/the-most-important-requirements-for-verifying-invoices-correctly-including-a-checklist\/","title":{"rendered":"The Most Important Requirements for Verifying Invoices Correctly \u2013\u202fIncluding a Checklist\u00a0"},"content":{"rendered":"
If you approach the incoming invoice workflow in a systematic or perhaps even automated manner, you\u2019ll save both time and money while also increasing transparency. After reading this short blog post, you\u2019ll no longer think that checking incoming invoices is a closed book. A short checklist will highlight the most important points you need to consider. And finally, we\u2019ll give you a practical tip on how to make invoice verification in your company faster, easier, and more secure.\u00a0<\/p>\n\n\n\n
From a formal perspective, an incoming invoice is a document received by a company whereby a business partner requests payment of an outstanding receivable. The actual subject of the invoice, e.g., a service or physical product, was agreed in a previously concluded contract and performed with the provision of a service or delivery of goods. <\/p>\n\n\n\n
An incoming invoice has two important functions in a company: it serves as a tax document for the tax office and as a factual document for a company\u2019s accounting team. This means that invoices must be subjected to three checks:<\/p>\n\n\n\n
The formal check ensures compliance with local tax regulations, such as the Value Added Tax Act in Germany or similar laws in other countries. This tax law specifies a number of formal details that an invoice must meet in order to be claimed as deductible for VAT purposes.\u00a0<\/p>\n\n\n\n
Mandatory invoice details vary by region but generally include the correct names and addresses of both parties, invoice number, and tax information, adhering to local regulations. Among other things, this step checks:<\/p>\n\n\n\n
Important: According to the German VAT Implementation Order (UStDV), less information is required for small-value invoices of less than 250 euros. If invoice issuers are exempt from VAT as small entrepreneurs, this must be noted on the invoice with a corresponding statement. <\/p>\n\n\n\n
For the complete list of mandatory information for the different types of invoices as well as other helpful explanations, see our article entitled <\/em>Incoming Invoices: incoming invoices Incoming invoice processing: Everything you need to know<\/em><\/a>.<\/em> <\/p>\n\n\n\n A formal invoice check is the first step in ensuring compliance with global standards and local regulations, crucial for multinational operations. You check each invoice to ensure that it contains all the information required for the invoice type in question. The reason for this order is that if there is a formal error in an incoming invoice, it should not be moved on the factual check, but rather returned to the invoice issuer for amendment.\u00a0<\/p>\n\n\n