Invoice numbering

**stek** · 19 July 2012, 15:42

The numbers must follow on - I got a slap off NW for not doing so! Easier to conform and stay below the radar....

**SimonMac** · 19 July 2012, 16:14

Originally posted by stek View Post

The numbers must follow on - I got a slap off NW for not doing so! Easier to conform and stay below the radar....

Ooops I did Mehmeh did and started at 001, will change them to 001-Client1Ref, 002-Client1Ref, 003-Cleint2Ref.

Would it be best to go back and renumber them, even if you don't send the new one to old clients?

**BolshieBastard** · 19 July 2012, 18:17

I just number my invoices with number of month, year and a sequential number within the month. For example, 07/2012/001, 07/2012/002 etc.

When I had a retail company delaing with public and account customers, the Sage package we used just numbered over the counter invoices \ receipts 001/month/year with account customers being similar but preceeded with 4 or 5 letter abbreviation of their name, so ABCDE/001/07/2012

**Wanderer** · 19 July 2012, 20:03

Originally posted by Mehmeh View Post

What do you guys do? It's confusing having non client specific invoice numbers.

I just number my invoices sequentially.

I'm really puzzled, why does it confuse you?

**Contreras** · 19 July 2012, 20:31

Originally posted by Mehmeh View Post

would it not be possible to include the letters as part of the unique invoice number??
Example:
ABC0123
ABC0124
XYZ0001
XYZ0002
XYZ0003
DEF0001

My accountant is pointing me here HM Revenue & Customs: VAT invoices: what they must show

and saying that the invoice must be unique and follow on from the number of the previous invoice..

Yep, you can do that (if you really want to).

What HMRC say: "a sequential number based on one or more series which uniquely identifies the document" linky here.

Of course, it gets a bit silly if you have clients with only one or a few invoices each, and I would question your rationale for wanting to do this (even though I do the same myself), a simple serial number shouldn't be "confusing"!

<pedant>Indeed, it might be argued that your original numbering system is not compliant - it leaves 'gaps' in the numbering for each client.</pedant>

Try pointing your accountant at the original HMRC notice: Changes to VAT invoicing with effect from October 2007

PDF linky here, see page 5.

Does the invoice number series have to be numerical, or can it include letters?

The ‘invoice number’ can be numerical, or it can be a combination of numbers and letters, as long as it forms part of a unique and sequential series.

In order to avoid the appearance of having only just started in business I do not want to start at Invoice no.1 and would prefer to commence with, say, Invoice no 1135. Is this allowed?

Yes, as long as the invoice series runs consecutively from that point.

I currently use a unique customer reference number as the identifying number on the invoice. If I add an additional consecutive number will this be acceptable?

Yes, this would have the affect of creating a unique and sequential series.

I have several customers and I wish to run several separate sequences of invoices at the same time. Is this possible?

Yes, it is acceptable to operate more than one sequence at the same time.

My business operates as several separate business units or divisions. Is it possible for each unit or division to operate its own sequence of invoices?

Yes, it is acceptable to operate more than one sequence at the same time.

What if there is a break in sequence, for example where I cancel an invoice or it is spoiled and never issued to a customer?

As long as you retain the cancelled or spoiled invoice in your accounting records, or you can provide an explanation for the break in sequence, this is acceptable.

**yasockie** · 19 July 2012, 20:52

I am numbering my invoices sequentially but until today I wasn't aware that this was a legal requirement. I guess the forum is useful after all

**adeleatnixonwilliams** · 20 July 2012, 08:14

Originally posted by stek View Post

The numbers must follow on - I got a slap off NW for not doing so! Easier to conform and stay below the radar....

We do recommend that our clients complete sequential numbering. The main reason would be for us to ensure that we have all of your invoices and are not missing any when preparing reports on your behalf.

If you were to use a prefix or suffix and these change between contracts we wouldn't necessarily be able to identify if we have received all invoices for that particular engagement.

For example BT001 can be used for one contract then moving to another BAR001 we wouldn't know if BT008 was the last invoice that we should have!

**Sausage Surprise** · 20 July 2012, 17:36

FFS...how to complicate something simple...

**Scrag Meister** · 22 July 2012, 16:51

This is an interesting question as my main contract is self-billed and the agent creates an invoice number, however when I work direct I have my own invoice sequence, is this an issue?

Invoice numbering