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Invoice Number, Number Ranges – Info & Examples.
Legally, there are only a few requirements regarding the numbering of invoices: The invoice number must follow a system, be unique, and sequential. For example, the persistent rumor that it must be gapless is not true. We provide a practical overview.
English image not yet available...Legal Requirements
Switzerland
In Switzerland, invoices do not even need a number from a tax perspective. See the article on the SME portal of the Swiss Confederation.
Germany (and EU)
A sequential invoice numbering is mandatory.
Why are invoice numbers needed?
In Switzerland, invoices do not even need a number from a tax perspective. See the article on the SME portal of the Swiss Confederation.
Germany (and EU)
A sequential invoice numbering is mandatory.
Why are invoice numbers needed?
Invoice numbers allow the tax authorities to get an overview of the number of invoices issued in a calendar year. During an audit, they serve as a clear assignment and reconciliation with the bookkeeping of business partners.
If invoice numbers are missing on supplier invoices or invoices to customers, the worst-case scenario is that the tax authorities do not recognize the invoice, or it leads to additional tax payments. A customer does not have to pay an invoice without an invoice number.
The minimum requirement for an invoice number
- It must be unique
- It must be sequential
- It may contain numbers and letters and also multiple number series
Systematics / Number Range
The fact that the invoice number should follow a system is already given by the sequential numbering. This is also referred to as a number range.
The fact that the invoice number should follow a system is already given by the sequential numbering. This is also referred to as a number range.
In MOCO, the number range for automatic number assignment is defined in the settings under “Number Ranges” > “Invoices”. MOCO ensures that no number can be assigned twice.
Examples of Number Ranges
Choice of Invoice Number Range
Everyone has different preferences. Clear data is the goal. Too much creativity can lead to chaos. We show three examples of good numbering and explain the systematics in each case.
0123
The simplest – a simple, incrementing number
A purely sequential number without resetting is the simplest and most straightforward solution.
MOCO Checklist
- {C} = Enter variable for the incrementing automatic number.
- Select minimum width. The example is based on a minimum width of 4 digits.
- Optional addition: Letters for context assignment (e.g., “R” for invoices or “D” for services).
- Select start number: At the start, you can start with a number like 1001 to avoid a customer thinking it is the very first invoice if it starts at 0001.
- Reset: Never. This ensures that the number is only assigned once.
200123
Numbering with a temporal reference
The year can be integrated as a number series in the invoice number, making it easier for the issuer to assign it to a calendar year.
MOCO Checklist
MOCO Checklist
- Enter {YY}{C}.
- Reset: annually
- Optional addition: Integrate month
- Insert individual separators
MER-200123
Numbering with customer reference
The invoice number can also contain the customer number or customer abbreviation. This way, the invoice can be clearly assigned to a customer through this number. However, MOCO also offers the option to print the customer number or customer abbreviation additionally as info on the invoice, making the customer assignment quickly recognizable when searching for the invoice by its number.
So, before making the invoice number unnecessarily long, it is better to check what advantage you expect from integrating the customer number.
So, before making the invoice number unnecessarily long, it is better to check what advantage you expect from integrating the customer number.
MOCO Checklist
- Enter {KDNR}-{YY}{C}.
- Reset annually
- Optional: Additionally integrate month, monthly reset
- Optional: Insert individual separators
Rumors
Germany: Invoice number must not be gapless.
→ No. The numbering only needs to be sequential*.
Germany requires a sequential invoice numbering according to § 14 Abs. 4 S. 1 Nr. 4 UStG. The sequential number (invoice number) ensures that the invoice issued by the entrepreneur is unique.
A gapless sequence of these invoice numbers is not mandatory, according to the VAT Application Decree (search for invoice numbers in the document):
English image not yet available...
Gaps are okay, and it is always good if they are traceable when asked. In MOCO, any gaps (e.g., due to deleting an invoice) are clearly documented, so they are always traceable.
If you constantly have gaps, you should consider using invoice drafts specifically. In draft status, no invoice number is assigned yet. An invoice only becomes binding with the "Create" action.
A cancellation invoice has the same invoice number as the corresponding invoice.
→ No. A cancellation invoice is an invoice with its own invoice number. It contains the same items and negates the corresponding invoice with the negative total amount.
→ No. The numbering only needs to be sequential*.
Germany requires a sequential invoice numbering according to § 14 Abs. 4 S. 1 Nr. 4 UStG. The sequential number (invoice number) ensures that the invoice issued by the entrepreneur is unique.
A gapless sequence of these invoice numbers is not mandatory, according to the VAT Application Decree (search for invoice numbers in the document):
English image not yet available...Gaps are okay, and it is always good if they are traceable when asked. In MOCO, any gaps (e.g., due to deleting an invoice) are clearly documented, so they are always traceable.
If you constantly have gaps, you should consider using invoice drafts specifically. In draft status, no invoice number is assigned yet. An invoice only becomes binding with the "Create" action.
A cancellation invoice has the same invoice number as the corresponding invoice.
→ No. A cancellation invoice is an invoice with its own invoice number. It contains the same items and negates the corresponding invoice with the negative total amount.
The customer can see how many invoices I have already written.
→ It depends. This can be easily avoided.
As a small business, you should not start with 1 for the number, so the customer does not immediately see that only a few invoices have been created so far.
You can freely choose the number you want to start the number range with!
For example, simply start with 30001: RE30001, RE30002, RE30003, etc. Or integrate the year and omit separators. For example, 2000001 (in MOCO {yy}{c} with a minimum width of 4 digits).
→ It depends. This can be easily avoided.
As a small business, you should not start with 1 for the number, so the customer does not immediately see that only a few invoices have been created so far.
You can freely choose the number you want to start the number range with!
For example, simply start with 30001: RE30001, RE30002, RE30003, etc. Or integrate the year and omit separators. For example, 2000001 (in MOCO {yy}{c} with a minimum width of 4 digits).
If I issue an invoice for the previous year at the beginning of the year, it needs the last year's number in the invoice number.
→ No. It is usually irrelevant for the tax authorities.
The invoice number is merely a reference point for bookkeeping – however, the performance period of the invoice usually counts.
Numbers should contain as much information as possible
→ No. Long numbers are especially confusing for small companies. Who likes long numbers anyway... It is better to choose a simple system (examples above).
Integrating the complete date is clever.
→ We do not recommend it. Integrating the complete date made sense in the past to guarantee the uniqueness of the number with manual numbering. Integrating the complete date makes the number unnecessarily long and can cause complications if the invoice date is changed later.
→ No. It is usually irrelevant for the tax authorities.
The invoice number is merely a reference point for bookkeeping – however, the performance period of the invoice usually counts.
Numbers should contain as much information as possible
→ No. Long numbers are especially confusing for small companies. Who likes long numbers anyway... It is better to choose a simple system (examples above).
Integrating the complete date is clever.
→ We do not recommend it. Integrating the complete date made sense in the past to guarantee the uniqueness of the number with manual numbering. Integrating the complete date makes the number unnecessarily long and can cause complications if the invoice date is changed later.
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*Reference link
The sequential number (invoice number) ensures that the invoice issued by the entrepreneur is unique. When creating the
invoice number, it is permissible to use one or more series of numbers or
letters. A combination of digits with
letters is also possible. A gapless sequence of issued
invoice numbers is not mandatory
Nevertheless, even in Switzerland, a formally correct invoice is the simplest form for all parties to document the VAT-relevant facts of an exchange of services.
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Nevertheless, even in Switzerland, a formally correct invoice is the simplest form for all parties to document the VAT-relevant facts of an exchange of services.
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NOTE: We provide practical tips in this article – but cannot give legally binding information. Please always clarify details or uncertainties with your tax advisor or the tax authorities.
