What Is an Invoice?
An Invoice is a document that contains information concerning a certain sale transaction. The purpose of the document is to thoroughly describe the transaction stating its main details so that the document can be used in various situations. For example, sellers can use a simple Invoice to request buyers to pay for the goods that they have purchased. Furthermore, buyers can use the Invoice as proof that they have already paid for the goods they have purchased (if the Invoice clearly states it).
In addition to the things mentioned above, a commercial Invoice can be used by businesses when they are filing their taxes as proof of their income (or transactions). The information that they state in their Invoices should always be true and valid, otherwise, it can become subject to penalties.
The Invoice can also be used as a shipment document that will describe all of the aspects of the shipment, including its type, carrier, package information, etc. The situation in which the document will be used can change its content, which is why there are so many different templates that match different purposes. Check out the links below to download printable and customizable Invoice templates.
How Do I Create an Invoice?
Creating an Invoice is a straightforward process, however, many people find it easier to find a blank Invoice template and fill in the information about the transaction. The general document should be presented in the shape of a table and should contain parts. They can include the following:
- Date and Number. Write down the date the Invoice was sent and its unique reference number. It will help to track transactions and connect them with the purchases they cover.
- Information About the Parties. State information about the parties. They can be presented in different ways due to the different types of Invoices, however, the most commonly used are a seller and a buyer, a company and a customer, or a shipper and a consignee. In addition to this, the Invoice can also specify information about the carrier and state their name, location, and contact details.
- Description of Products. This part of the document should contain information about the package. Here, the customer should find the list of items that the package consists of, its weight, quantity, price, and other details that characterize it. The information should be enough for the customer to clearly identify the items.
- Transaction Information. Sellers can use this part of the document to designate the total price of the package, whether it was already paid, and what method of payment has been used in this case.
- Signature. The seller should sign the document in order o state that all of the information presented in the document is true and valid.
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