What Is The Purpose Of A Invoice?

An invoice is a commercial document which is issued by the seller of the goods to the buyers. This bill indicates that the seller has provided a specific product category, with specific quantity and at a price to the buyers. An invoice is considered very important because it shows that a transaction has been made between the buyers and the seller. It is issued to the buyer without any extra charge and if the post sale issues arises then invoice is considered as a major proof of transaction. The receipts given by the sellers on the retail outlets are examples of invoices. Therefore, an invoice is the proof of the transaction.

Invoice is an itemized statement of money owed for goods shipped or services rendered.

An Invoice is a commercial document that indicates all kinds of selling activity. It is basically the bill that is issued by a seller to the buyer. It has all the details about the sales activity such as the details of products, the quantity purchased, prices for the product and any terms and conditions for the guarantee or warantee. When an invoice is given to another company, it means that you certainly ow them some money. There are also various types of invoices depending on their purpose and usage such as:
- Proforma Invoice
- Time Sheet
- Debit memo
- Credit memo.

The purpose of an invoice is to have a clear documentation of the services rendered and the expectation of payment. An invoice is preceded by a contract (verbal or otherwise) and indicates the services that were provided, rate of services, and total amount due. Invoices also include time expectation of payments, usually net 30 (30 days after receipt of invoice) or net 60 (60 days after receipt of invoice).

You can use anything to document an invoice, there's pre-made paper templates and online invoice tools. For freelancers and small businesses, invoices can be a nice extension of their branding and should be accurate and look professional.