By Kelly Kemp - April 10 2018 06:19:51
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?
An invoice, sometimes called a sales invoice, is a document sent by a provider of a product or service to the purchaser. The invoice establishes an obligation on the part of the purchaser to pay, creating an account receivable. In other words, the invoice is a written verification of the agreement between the buyer and seller of the goods or services. Invoices are an important part of your business s bookkeeping and accounting recordkeeping system because they record sales transactions.
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.
An invoice, on the other hand, records the receipt of the product or service and, as noted above, the terms of payment. Purchase orders are used by many companies as part of an approval process. Some companies require purchase orders for products or services over a specific amount.
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