Invoice or Bill
An invoice is a document created by the seller as evidence of a sales transaction between a buyer and the seller. It is often prepared in case of a credit sale. Nowadays invoices are prepared with the help of ERPs i.e. in a digital format yet they can also be prepared on paper.
It is a non-negotiable commercial document and normally contains details such as;
- Date of transaction
- Unique Identification Number
- Details of Buyer
- Quantity Sold
- Price Per Item
- Short Description of Items Sold
- Terms of Payment
- Signature of the Authorized Party
The terms are synonymous to each other, nevertheless, it is commonly accepted that an invoice is created whereas a bill is received. It may look similar to a cash memo, however, a cash memo is only used for cash sales.
Template of Invoice or Bill
>Read Promissory Note
For Accounting Practice