Critical Differences and Application Areas Between Basic Invoice and Commercial Invoice

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Basic Invoice and Commercial Invoice

With the digital transformation process in today's world, businesses' transition to the e-Invoice system has accelerated, and different types of invoices have emerged within this system. e-Invoice offers businesses both cost advantages and speed, as well as easy tracking, and has been divided into various categories to adapt to different business processes. The most commonly used types of these invoices are the basic invoice and the commercial invoice. These two types of invoices are used for different purposes, depending on the business operations and customer relationships. When deciding which type of invoice to use, businesses must have a good understanding of the basic differences between these two types. The basic invoice is typically aimed at individual consumers and trusted business partners, while the commercial invoice is more commonly preferred by large-scale businesses and has additional control mechanisms.

What is a Basic Invoice?

A basic invoice is an invoice created electronically between a buyer and seller registered in the e-Invoice system. This type of invoice can only be viewed by the buyer, and the buyer is required to accept the invoice. The buyer has no right to reject the invoice. If any errors are detected in the invoice, the correction can only be made through a return invoice. For this reason, basic invoices are generally preferred in transactions with trusted business partners and sales to individual consumers. An important advantage is that it speeds up business processes and, due to the automatic acceptance mechanism, does not create additional operational burden for businesses.

Features of the Basic Invoice

The basic invoice is one of the most widely used types of invoices in the e-Invoice system and offers significant advantages to businesses. However, due to certain limitations, it must be used with care. Here are the detailed features of the basic invoice:

Irreversible: Basic invoices cannot be rejected by the buyer. Therefore, if there is an error in the invoice, the buyer does not have the right to object. Errors can only be corrected through a return invoice.

Automatically Approved: When the invoice reaches the buyer, it is automatically considered approved. The buyer does not need to perform any additional approval process.

Used for Trusted Business Partners: It is generally preferred when invoices are issued to long-standing, trusted customers. This allows processes to move faster and eliminates the need for additional approvals.

Suitable for Individual Consumers and Small Businesses: It is typically used for sales to individual consumers and small businesses. It is ideal for these types of customers as it provides fast processing.

Limited Cancellation Process: Cancellation of basic invoices can only be performed under specific conditions through the "e-Invoice Cancellation Portal" provided by the Revenue Administration (GIB). The cancellation process is stricter compared to commercial invoices, and the buyer cannot directly intervene.

Accelerates the Process: Thanks to the automatic approval mechanism, no additional processing is required, simplifying businesses' accounting processes.

What is a Commercial Invoice?

Commercial invoices help increase transparency in supply chain management and accounting processes, while also helping businesses perform financial controls more effectively. Thanks to the approval or rejection mechanism of the commercial invoice, possible mistakes or disputes between the parties can be minimized. Additionally, commercial invoices that are not approved by the buyer are not valid in the system, making the process more controlled. A commercial invoice is a type of invoice used to manage business processes between buyers and sellers in a more flexible way. In this type of invoice, the buyer has the right to accept or reject the invoice within a certain time frame.

Features of the Commercial Invoice

Commercial invoices are e-Invoices with an approval and rejection mechanism that help businesses manage their commercial transactions in a more controlled manner. This type of invoice is particularly preferred by large businesses and corporate firms.

Right to approve or reject: The buyer has the right to approve or reject the invoice within a specified time. This provides more control over the invoice.

Flexible processing: Commercial invoices allow businesses to examine invoices in detail. It is easier to correct errors or cancel invoices.

Suitable for Corporate and Large Businesses: It is commonly preferred by large-scale companies, firms managing supply chains, and government agencies.

Facilitates accounting and financial control: Commercial invoices make business financial processes more transparent and auditable.

Easy cancellation and rejection process: The buyer can review the invoice and reject it within the specified time. The rejected invoice is automatically canceled in the system.

Strengthens supplier-customer relationships: Commercial invoices help establish a transparent business relationship between parties and prevent potential disputes.

Differences Between Basic Invoice and Commercial Invoice

Buyer’s Approval: In the basic invoice, the buyer automatically accepts the invoice, while in the commercial invoice, the buyer has the right to approve or reject it.

Error correction process: In the basic invoice, errors are corrected through a return invoice, whereas, in the commercial invoice, the buyer can directly reject the invoice.

Usage areas: The basic invoice is more commonly used in transactions with individual and trusted business partners, while the commercial invoice is common in dealings with large businesses.

Processing time: The basic invoice provides fast processing, while the commercial invoice may take longer due to the approval process.

Which Type of Invoice Should Be Chosen?

Businesses should choose the most suitable type of invoice based on the customer profile, business processes, and sales method. Correctly selecting the invoice type simplifies both accounting processes and customer relationships. Each type of invoice offers different advantages depending on the business needs and sales conditions.

Working with Trusted and Regular Customers

If you work with trusted and regular customers, the basic invoice may be preferred. These invoices are generally easier and faster to process. Transactions with a stable customer base allow for direct processing without needing too many details on the invoice. Also, since there are usually no frequent changes or objections in the transactions, the basic invoice is sufficient.

Working with Corporate Customers

Commercial Invoice Corporate customers typically require more detailed and legally stronger invoices. The commercial invoice provides more security both in business relationships and from a tax perspective. These invoices are typically issued within a specific legal framework and are often used alongside sales contracts and other business documents. Commercial invoices are considered a more professional and valid document for corporate customers. Moreover, since payment processes in sales to corporate customers may be longer, the legal security and details provided by the commercial invoice are important.

For Those with a High Likelihood of Post-Sale Objections

Commercial Invoice If there is a high likelihood of post-sale objections and disputes, a commercial invoice should be chosen. Commercial invoices are legally stronger and more detailed, making it easier for businesses to defend their rights in the event of a dispute. Commercial invoices also provide clear information on when and how the product or service was delivered. This can be used as evidence in case of objections and speed up the resolution process.

Sales to Individual Consumers

Basic Invoice When selling to individual consumers, the transactions should generally be simpler and faster. The basic invoice is the most suitable type of invoice for individual consumers because it can be issued quickly and practically. Additionally, there is generally no complex dispute expected in individual sales, so the basic invoice is sufficient. Basic invoices are typically preferred by small businesses and companies engaged in retail sales.

Conclusion

The basic invoice and commercial invoice are the most commonly used types of e-Invoices, and each is designed to meet different needs. The basic invoice is more suitable for small businesses and individual customers, while the commercial invoice is a better choice for corporate customers and large businesses. By choosing the most appropriate invoice type based on your business structure and customer portfolio, you can make your processes more efficient. Additionally, by transitioning to the e-Invoice system, you not only benefit from digitalization but also comply with legal requirements and manage tax audit processes more transparently. This selection allows you to reduce costs and improve time management. Identifying the right type of invoice will also contribute to the long-term financial sustainability of your business.