Invoice software for Hong Kong

Invoice Unit Price in Hong Kong

The invoice unit price refers to the cost of individual units sold to the customer. The unit price is multiplied by the total quantity of each product to reach the invoice subtotal value. So, for instance, if a business sells 20 units of product A at HK$50 per unit, the invoice subtotal value can be calculated as follows:

invoice unit price

Invoice subtotal value = price per unit * quantity of item sold

Invoice subtotal value = HK$50 x 20 = HK$1000

There can be different unit prices for different products and can even be different if the same product is sold in different quantities. For example, the per unit price can be a lower figure when a bulk purchase is made and vice versa.

For buyers, the invoice unit price is specifically important when the purchase is made in bulk. This is because it is a way to see how much cost will be incurred on a per-unit basis. This means that this information is considered extremely important for selecting an appropriate supplier. It therefore allows the business to make informed decisions while ensuring a profitable purchase.

Importance of Invoice Unit Price

The invoice unit price is highly important in the following aspects:

Can the Unit Price be in Decimals on the Invoice?

The answer is yes, the unit price on an invoice can be in decimals. However, in electronic invoicing, it is recommended to use two digits after the decimal point in the unit price.

The reason for this requirement is that it intends to minimize the risk of differences due to rounding. Once the rounded price has been reached and multiplied with the quantity, the calculated total is not subject to further rounding.

In order to avoid any confusion about rounding, it is wise to sell the products in packs. For example, it can be a pack of 10, 20, 50, 100 and so on.

Example

If the product price is HK$20.764 per unit and you sell 100 pieces, you must round off the price to 2 decimals and then multiply. This would then be, HK$20.76 x 100 = HK$2076. So, in this example, the business is able to charge HK$2076 for 100 units.

On the other hand, you are able to sell a pack of 100 units at HK$2076.40

The key is to negotiate the pack because if the deal is based on per unit price, there is a need to keep two decimals after the unit price before multiplying with the quantity.

Conclusion

The invoice per unit price is the price of individual units charged to the customer. This price is multiplied by the quantity to reach the invoice total.

The invoice unit price is considered as one of the important elements of an invoice as it helps with accurate billing, enhances billing transparency, serves as a legal record and is also essential for the buyers’s pricing policy and verification of the invoice.

The invoice unit price can be in decimals. However, there can only be 2 digits after the decimal in price. Further, in order to avoid rounding problems, it is a good idea to sell products in packs.


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