By Minnie Stowe - March 22 2018 13:17:04
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.
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.
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.
Invoices are important not only for keeping track of sales and payments, from balances to stock levels, but they can also be used in the case that a payment is overdue or missing and is followed up with more formal actions.
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