EXCHANGE INVOICE: CHARACTERISTICS, WHAT IT IS FOR AND EXAMPLE - ARTE - 2024

The exchange invoice is a credit to order title that registers the commitment to pay an unquestionable amount of money within an established term, at the same time that it details the products that have been sold, as the essence of the contract that gives rise to the title.

In other words, it is a credit security that the seller may issue to send or deliver to the buyer in the sale of merchandise, which incorporates a credit right on the unpaid part or the totality of what is marketed.

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If you want to observe from the point of view of the obligor, the exchange invoice is the credit instrument that incorporates the duty that the buyer has to pay on the due date the amount that is owed in a sale on credit of merchandise.

For no reason or under no circumstances may the debtor refuse to pay the invoice that is presented to him by the legitimate holder of the same.

characteristics

By invoice is understood the list of goods that are the subject of a commercial contract, where their price, their characteristics, and their quantity are mentioned.

The exchange invoice as a credit instrument started from the common invoice, but it was transformed from being a concise document proving a contract for the sale of merchandise, into a document establishing the credit right that comes from collecting its amount.

It is a formal title

It must include both the general requirements of the credit titles and the specific ones of the invoice. Formality is a fundamental condition for the exchange bill to be considered as a credit instrument.

It's a full title

It is sufficient by itself to generate all the effects attributed to it by law. The foreign exchange invoice forges all its effects by itself, without needing to be supplemented by any other document.

It is a title to order

It is created to favor someone explicit: the seller of the goods whose partial or total amount raises the exchange invoice.

The seller orders that the payment be made to the person specified in the exchange invoice or to whom it places through an endorsement.

It is a categorical title

It incorporates the right to collect the component amount of the price of a merchandise delivered real or symbolically, without the execution of this right being conditioned to any consideration.

If the buyer accepts the exchange invoice, he is fully obliged to pay in a pure and simple way to whoever presents it the amount in question, after the invoice is shown for collection and has an endorsement.

What is it for?

The foreign exchange invoice was created by a practical necessity of the business, which used common invoices that were accepted by the buyer as a way to document a short-term credit approval.

Document the marketing of forward merchandise

This is the main function of the foreign exchange invoice. After the seller delivers the merchandise that is the subject of a credit marketing, he issues or creates an exchange invoice with the description of the merchandise, its payment method and price, delivering it to the buyer for acceptance.

If the case is that the buyer does not accept the exchange invoice duly discussed, he will admit the judicial collection through the exchange action. If the buyer accepts, then the seller can collect the invoice on the due date.

Collection instrument

This function is deeply linked to the previous one, since it is the one that gave rise to the title of credit that is the exchange invoice.

To collect the full amount of a sale of merchandise, the seller issues the invoice. By accepting it, the buyer agrees to pay within the established period. In this way, the seller grants the credit to the buyer.

Instrument for a discount transaction

The discount is the operation through which the money of a loan is converted into liquid money.

For the exchange invoice to fulfill this function, before its due date, the holder of the invoice endorses it to a bank, which immediately pays it with a payment, deducting interest for the time remaining for its payment date. and charging a commission for the collection service.

In turn, the bank may discount the exchange bill at another bank, thereby executing a so-called rediscount operation.

Guarantee instrument

Due to its nature as a credit instrument, the exchange invoice is ideal to fulfill the function of guaranteeing an obligation. In this sense, the exchange invoice can be deposited through an endorsement in guarantee.

Payment instrument

The foreign exchange invoice can also be used as a form of payment instead of money. To do this, whoever owns it will simply assign it with an endorsement to its creditor.

Example

The commercial exchange invoice is another type of security. This is delivered by the provider of a service or seller to the beneficiary of the service or buyer. It specifies the amount that the buyer must pay to the seller and the term to make said payment. An example of this invoice can be seen in the illustration.

The exchange invoice must contain the following requirements as established in the commercial code:

The exchange invoice must have an expiration date. If this requirement is waived, by default this void is filled with the understanding that it must be paid within the next thirty days from the date of its issuance.

In addition to the date of receipt of the invoice, the identification of the person indicated to receive it, with the name and / or signature, must also be indicated.

In the original of the invoice, the seller must state the payment conditions and the price of the merchandise or service provided.

Other requirements

Together with the general requirements that every security must have, and the specific requirements mentioned above, the exchange invoice must also contain the following requirements:

- It must be named as an exchange or sales invoice.

- Name and surname, or company name and NIT, of the seller or service provider.

- Name and surname, or business name and TIN, of the buyer of the services or goods.

- The numbering must be consecutive.

- Date of dispatch.

- Precise description of the service provided or the items sold.

- Total amount.

- The business name and NIT of the invoice printing company.

The seller must issue an original invoice with two copies. It is considered a security for all purposes, the original signed by the seller and the buyer.

References

1. Guatemalan Law (2019). Definition of exchange invoice. Taken from: Derechoguatemalteco.org.
2. My Lawyers (2016). What is the exchange bill? Taken from: misabogados.com.co.
3. Oscar Chile Monroy (2018). The exchange bill. Free Press. Taken from: prensalibre.com.
4. Angela María Zambrano Mutis (2017) What does the exchange bill of sale consist of? Manage. Taken from: gerencie.com.
5. Edmundo Vasquez Martfnez (2019). The Exchange Invoice. Biblio Resources. Taken from: Recursosbiblio.url.edu.gt.