Invoice Draft

At Alunta, we have created a dictionary that explains important terms and concepts within subscription and service businesses. You are currently reading the specific page for “Invoice Draft”.




What is an invoice draft?

Let’s take a shot at dressing up an otherwise dry and boring accounting term into something more fun. Invoice Draft, the unsung hero of the subscription business world. It’s not a fancy drink you order at a bar, or a classmate who always has sticky fingers. No, Invoice Draft is actually a type of ‘to-do’ list that helps businesses keep track of their invoices. Not so glamorous, but incredibly necessary! Imagine being a business owner with hundreds of subscribers. Each of these precious customers needs to be sent an invoice every month. It would be a nightmare to remember it all in your head, right? That’s where our hero Invoice Draft comes in. It’s a list of all the invoices that need to be created but haven’t been created yet. Think of it as a to-do list for business owners – “Remember to send an invoice to Mrs. Hansen!” And no, Invoice Draft is not someone you can hire to do all this tedious work for you. It’s more like a digital assistant that keeps track of all the important stuff. If you have a subscription-based business, Invoice Draft is your best friend. It helps you keep track of who you should send invoices to, when you should send them, and how much you should charge. Handy, right? So whether you run a gym, a streaming service, or a newspaper, an invoice draft is a must-have. Otherwise, you risk becoming that person who forgets to collect payments, and let’s be honest, who can afford that? So the next time someone mentions Invoice Draft, you can smile knowingly and say, “Oh, you mean the digital superhero who helps business owners keep track of their invoices? Yeah, I know him well.” And then you can enjoy the confused look on their face as you take a sip of your (non-invoice draft) drink. But remember, like all superheroes, Invoice Draft is only as good as the person using it. So make sure to keep it up to date, and it will save your finances time and time again. And if you ever forget what a draft invoice is, you can always come back to this fun and easy-to-understand definition. Happy invoicing!

Relevant questions regarding invoice drafts

In most accounting systems it is possible to create drafts before posting. Once an invoice has been posted there is (most often) no way back. This means that it is often a good idea to work with invoice drafts until you are 100% sure that the invoice should be made final.

Yes. An invoice and a credit note are actually almost the same. A credit note is basically an invoice where the sum of the order lines is negative. In most systems, there is therefore no real technical difference between whether something is an invoice or a credit note, as it depends on the final sum of the order lines (i.e. the price). If it is positive, it is an invoice - if it is negative, it is a credit note.

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