By Sondra Martin - April 11 2018 04:09:57
An invoice provides a detailed account of the products or service and a set of other information that can vary a bit depending on the requirements in the country the invoice is issued and the type of product or service being sold.
An invoice is a pillar of the sales process. It is the main document that serves as a bill for the service or products your business has provided. A properly created invoice is a legal document that provides a binding agreement.
The usual sections in an invoice include:
~ The date that the invoice was created. Do not forget this! The date of the invoice starts the clock ticking on the customer. If you have terms (a time limit for payment), you want to include the date so everyone knows when the payment is due.
~ Names and addresses of customer and supplier. If you are creating the invoice in accounting software, you may only need the email address of the customer, but it is still a good idea to collect and include the physical address, in case you need to send a real letter or document.
~ Contact names of individuals at the two businesses (or business and individual). It is a good customer relations rule to make sure you spell names correctly.
~ Description of items purchased, either products or services, including prices and quantities. Often you will have standard item descriptions and inventory numbers. But be as specific and detailed as possible, when you create the invoice. This avoids confusion and "I did not know" issues.
~ Terms of payment. For example, the provider might specify "net 30 days," which means that the entire amount is due within 30 days.
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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