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By Viola Woods - March 16 2018 12:44:20
An invoice shows the payment that a buyer owes to a seller. From a seller’s point of view, an invoice for the sale of goods and/or services is referred to as a sales invoice. From a buyer’s point of view, an invoice for the cost of goods and/or services rendered is referred to as a purchase invoice.
The difference between an invoice and a bill is the focus and standpoint. The invoice is created by a supplier, and it is a statement of services or products produced and delivered to a customer, including the amount owed. An invoice may be created before or after the product or service is received. It is common for an invoice to be included with products being delivered, so the recipient can check off the items to make sure they are all there.
An invoice serves several purposes. It is not just the catalyst that gets you paid, although I would venture to say that is the no 1 role, huh?
Invoices are sometimes confused with purchase orders. Purchase orders (POs) are before the transaction, and invoices are after the transaction. Purchase orders record an order by a customer to a vendor or supplier.
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