A sales invoice is a document used in recording credit sales. It is prepared by the seller and sent to the buyer. It shows the total sales made to such customer and requests him/her to make payment. It is in duplicate. The original is sent to the buyer while the duplicate copy is kept and information from it is posted to the sales day book.
Where the sales made is services rendered and not goods sold, a sales bill will be prepared instead of sales invoice.
Below is a sample of a sales invoice
Where the sales made is services rendered and not goods sold, a sales bill will be prepared instead of sales invoice.
Below is a sample of a sales invoice
Example1.
FATutor sold on credit to ABC & Co. of #12, Oduzo street, Victoria Island, Lagos the following goods on the 29th day of February, 20x3:
25 packets of biros at £350 a packet
5 packets of A4 papers at £1250 each
3 realms of A3 papers at £1350 each
Example2.
Assuming all the information in example 1 above is the same and, in addition, a 10% discount is given and that ABC & Co met the conditions for the discount, prepare a sales invoice for ABC & Co.
Content (information) of a Sales Invoice
From the examples above, it can be inferred that the content of sales invoice will include:
- Name of seller
- Address of seller
- Order number or requisition number
- Invoice number
- Description and quantity of goods sold
- Name of the buyer
- Address of the buyer
- Unit price(s) of goods sold
- Amount of goods sold
- Date of sale or date of raising the invoice
- Terms of sale (such as discount)
- Signature of the seller
- Amount of tax charged, if applicable
- Sometimes, bank account details of the seller
Purchases Invoice
A purchases invoice is an invoice received from the seller with regards to the goods bought on credit from such seller. When goods are bought on credit, the seller sends a sales invoice to the buyer, detailing the transactions as well as reminding him of the payment due date.
To the buyer, this invoice received from the seller is called a purchases invoice. With this, therefore, we can say that a purchases invoice is the same as a sales invoice. Thus, the information content will no doubt remain the same.
What's the difference between an invoice and a voucher
ReplyDeleteAn invoice gives the description of goods sold. It states details as unit prices, quantity sold, amount involved and discount, if any.
ReplyDeleteSome invoices may carry the bank account details of the selling entity where the buyer is expected to make payment into. It also states the terms of credit, where credit transactions are involved.
On the other hand, a voucher, otherwise called a Payment Voucher is a document raised (or prepared) to make payment. It does not need to state details as quantity, unit prices and discount terms.