⚡ Key Takeaways: The Rules of B2B Billing
- Authorization is Key: Never bill a corporation without referencing a Purchase Order (PO) Number.
- Accuracy is Mandatory: Accounts Payable (AP) departments will reject invoices if line items don't exactly match the PO.
- Compliance Matters: Tax IDs (VAT/GST/EIN) for both parties are required for legal B2B transactions.
- Patience is Required: Standard payment terms are Net 30 or Net 60; immediate payment is rare.
If you treat a B2B (Business-to-Business) invoice like a B2C (Business-to-Consumer) receipt, you will not get paid on time.
In a small business transaction, you are dealing with a human who can make a decision. In a corporate B2B transaction, you are dealing with a process. Your invoice enters a queue in the Accounts Payable (AP) department, where it is scrutinized against strict compliance rules. If a single digit is wrong—or if a Purchase Order number is missing—the system rejects it automatically.
This guide will teach you how to structure your invoices to pass these checks instantly.
B2B vs. B2C Invoicing: Understanding the Difference
Understanding the fundamental difference in "intent" between these two documents is the first step to getting paid.
| Feature | B2C (Consumer) | B2B (Corporate) |
|---|---|---|
| Decision Maker | Individual Consumer | Procurement & Finance Depts. |
| Payment Speed | Immediate / Credit Card | Net 30, 60, or 90 Days |
| Verification | Proof of Purchase | Purchase Order (PO) Matching |
| Tax Requirement | Sales Tax / VAT Included | Valid Tax ID / Reverse Charge |
The Gatekeepers: Targeting the Accounts Payable (AP) Department
When you send an invoice to a company like "Global Corp," you aren't sending it to your contact, Sarah in Marketing. You are sending it to the AP Department.
The AP clerk does not know who you are. They do not know if the work was good. They only check for "The Three-Way Match":
- The Invoice: What you are billing.
- The Purchase Order (PO): What the company authorized to spend.
- The Receiving Report: Proof that goods/services were delivered.
Deep Dive: Why the Purchase Order (PO) Number is Non-Negotiable
A Purchase Order is a legally binding contract issued by a buyer to a seller. It signifies that the budget has been approved internally.
No PO? No Pay.
Many large corporations have a strict "No PO, No Pay" policy. This means if you submit an invoice without a valid PO number, it is automatically rejected.
Action Item: Before you start any work or deliver any goods, ask your client: "Can you please provide the PO Number for this project so I can reference it on the invoice?"
Our Corporate Invoice Generator includes a dedicated, prominent field for the PO Number to ensure you never forget this step.
How to Create an Approved Invoice (5 Steps)
Follow this workflow to ensure your invoice sails through the approval process.
Secure the PO Number
As mentioned above, get this before you bill. Ensure the amount on your invoice does not exceed the amount authorized on the PO.
Identify Legal Entities Correctly
Use the Full Legal Name of the client (e.g., "Acme International Ltd." not just "Acme"). Include your own Tax ID (EIN, VAT, GST) and the client's Tax ID. This is mandatory for cross-border B2B to apply reverse-charge VAT rules.
Tip: Use our VAT Invoice Tool if you need specific tax breakdowns.
Itemize to Match the PO
If the PO lists "Consulting Services - 40 Hours", do not invoice for "Web Development". The descriptions must match. Break down line items clearly: Description, Quantity, Unit Price, and Total.
Set Clear Payment Terms & Banking Details
Don't just say "Due Now." Use standard terms like "Net 30". Crucially, provide full banking details for a wire transfer (Bank Name, IBAN, SWIFT/BIC). Checks are becoming obsolete in modern B2B.
Send to the Right Channel
Do not just email your contact. Ask: "Is there a specific email address for invoices?" (e.g., [email protected]). Copy your contact, but direct the invoice to the money people.
The Pre-Send Compliance Checklist
- PO Number: Is it clearly visible at the top?
- Unique Invoice ID: Is it sequential and unique?
- Dates: Are 'Issue Date' and 'Due Date' clear?
- Tax IDs: Are both Supplier and Customer Tax IDs present?
- Bank Details: Are IBAN/SWIFT codes correct?
- Format: Is it a secure PDF (not Word/Excel)?
Frequently Asked Questions (FAQ)
What is the difference between a PO Number and an Invoice Number?
Why was my corporate invoice rejected?
What are standard B2B payment terms?
Do I need to include bank details on the invoice?
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute legal, financial, or tax advice. Invoicing regulations vary by jurisdiction (e.g., IRS, HMRC, ATO rules). We recommend consulting with a qualified accountant or tax professional to ensure your invoices meet all local compliance requirements.