An invoice is a support document which shows the details of purchase or sale of goods or services. When we purchase any goods or service, the seller of goods or the service provider raises a bill or Invoice. The Invoice contains the following particulars:

  • Name and address of the supplier.
  • Name and address of the purchaser.
  • Serial Number of invoice.
  • Date of invoice.
  • Customer or Purchaser’s Order number.
  • Description of goods.
  • Quantity of goods.
  • Rates of Goods.
  • Amount.
  • Discount (Trade discount and Cash discount to be shown separately)
  • Sales Tax number of purchaser and supplier in case of sale of goods.
  • Service tax number of the supplier in case of sale of services.
  • Transporter’s name
  • Goods Receipt Number and date.
  • Total amount of bill must be written in words and figures.
  • The bill must be signed by the duly authorized person.
  • The area of Jurisdiction must be defined in invoice.
  • Other terms & conditions also must be defined in invoice like credit period, interest & other charges in case of late payment or dishonor of cheques.
  • Normally, E. & O. E. also printed on all invoices. It means if there is any mistake in invoice that is subject to correction.

The invoice is always made in duplicate but according to the requirement of business firm more than two copies also can be prepared.

Invoice is classified in two categories:-

a) Purchase Invoice:- In the books of the purchaser of the goods, it is called the purchase invoice.

b) Sale Invoice:- In the books of the seller of the goods, it is called the Sale Invoice.

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