Invoice
Invoice
An invoice is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer.
Definition and Purpose[edit | edit source]
An invoice indicates the buyer must pay the seller, according to the payment terms. The buyer has a maximum amount of days to pay for these goods and are sometimes offered a discount if paid before the due date.
Types of Invoices[edit | edit source]
There are different types of invoices:
- Pro forma invoice: A pro forma invoice is not a true invoice, but rather a commitment from the seller to sell goods at a specific price to the buyer.
- Credit memo: A note or document sent from a seller to a buyer, stating that a certain amount has been credited to the buyer's account.
- Debit memo: When a company fails to pay or short-pays an invoice, it is common practice to issue a debit memo for the balance and any late fees owed.
Legal Status[edit | edit source]
Invoices are a legally enforceable document and can be used in court as evidence. They help in maintaining accurate financial records and are crucial during audits.
Invoice Management[edit | edit source]
Invoice management is a crucial aspect of managing a business. It involves receiving invoices from suppliers and processing them for payment.
See Also[edit | edit source]
References[edit | edit source]
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