Invoice Information:
What is an invoice? An invoice is a document that lists or itemizes and records a transaction between a buyer and the seller. Invoices are used for products purchased or for services provided. It states the terms of the deal, including the goods or services being purchased or provided, the amount of each item purchased, the price per unit, the quantity sold, any applicable shipping and handling fees, and the total amount due including any applicable taxes. The invoice may also state how long the buyer has to pay the amount due, if the goods or services were sold on credit. The invoice will also contain the names and addresses of the buyer and seller.
The invoice act as a legal record of the sale and help protect merchants from fraud. Invoices also maintain record and help track orders, as well as what was sold, who bought it, and how much they paid.
Invoices are important as they are a key accounting tool for companies. They help track the accounts receivable and the accounts payable as well. Each invoice will have a unique invoice number that is used for reference purposes.
It’s important to note that invoices are different than purchase orders. A purchase order is usually created before a customer finalizes their order, while an invoice is created after the purchase order. An invoice is usually attached to a purchase order.
The Seller can send the invoice either electronically or by hard copy to the buyer.