By Sondra Martin - April 10 2018 09:21:47
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 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 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.
I have heard from some clients that they do not necessarily need the long itemization that I have included in past invoices. At the same time, I have encountered clients who ask me to break down my invoice into very specific parts. When it comes to generating invoices, it is important to keep in mind that you are not making any money doing this. So, keep it simple and quick.
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