Commercial Invoice

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The commercial invoice is the key accounting document describing the commercial transaction between the buyer and the seller.

The commercial invoice includes the following elements:
  1. Name and address of the seller
  2. Name and address of the buyer
  3. Date of issuance
  4. Invoice number
  5. Order or contract number
  6. Purchase order number
  7. Quantity and description of the goods
  8. Unit price, total price, other agreed upon charges and total invoice amount stated in the currency of the contract or letter of credit
  9. Terms of delivery and payment
  10. Shipping details, including weight of the goods, number of packages and shipping marks
  11. Authorised signature of the company representative filling out the form
  12. Any other information as required in the sales contract or letter of credit
Cautions and Notes for Documentary Letters of Credit

In transactions involving a documentary letter of credit, it is vitally important that the description of the goods in the commercial invoice correspond precisely to the description of the goods in the credit.

The invoice amount should also match exactly (or at least should not exceed) the amount specified in the credit. Banks have the right to refuse invoices issued for amounts in excess of the amount stated in the credit. For this, as well as for other reasons, the invoice should be made out in the same currency as the credit.

Unless otherwise stated in the documentary credit, the commercial invoice must be made out in the name of the applicant (buyer). The exception: In transferable documentary credit, the invoice may be made out to a third party concerned.

The buyer, seller and bank should all carefully check for discrepancies in the invoices. The details specified therein should not be inconsistent with those of any other documents and should exactly conform to the specification of the credit.

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