Definition What is the function of invoice

If you have been in the business world, you are certainly familiar with the word invoice. Do you know what an invoice is? There are many terms in business and one of them is invoice, this article will thoroughly explore what is meant by an invoice. So just take a look at the presentation below.

Invoices are documents used to sign statements of billing transactions given by the seller to the buyer, the contents of this invoice are all the details of the items purchased, the total price and also the unit price as well as the date of purchase or the date of the transaction. This invoice consists of several types, there are simple invoices which are generally used in transactions, there are also temporary invoices because the goods sent are gradually arriving and there are also exclusive invoices used for export and import transactions.

Understanding Invoice According to Experts

Sugeng Hariyanto

Sugeng Hariyanto argues that the notion of an invoice is a note given to the buyer whose contents are in the form of details of the goods purchased. And this record is usually given for payment information, especially payments if the purchase is made on credit.

Andrian Sutedi

He argues that the invoice is a very important document in the trading process because through this invoice the sale and purchase data can be known starting from the number of draft withdrawals, the amount of insurance closing, and also the process of settling all incoming cash.

Invoice Function

  • Knowing data about the details of goods or services purchased.
  • Notification of information on the total cost to be paid.
  • As a reference for valid evidence of buying and selling transactions.
  • It is used as a recommendation material to add recorded transactions.
  • As a tax invoice

Invoice Types

Regular Invoice

An ordinary invoice is in the form of a document for debt collection that is most often used. Generally, this document record is used when the transactions that occur are quite simple. It has a simple format that only contains information about the name and price of the item.

Invoice Proforma

Proforma invoices are also known as temporary invoices. This letter is given if the goods supply process has not been completed. So this invoice is given to buyers in how many stages. It is proof that the goods have been shipped.

Consular Invoice

This type of invoice is the most exclusive invoice which is usually intended for buying and selling transactions between countries. Such as export and import transactions.

Components in Invoice

  1. Write down the intent and purpose of billing to the buyer.
  2. The identity of the collector, can be the name of a company or the name of the seller.
  3. The number associated with the purchase number.
  4. Details of purchased goods data.
  5. Total payment and tax amount.
  6. Payment includes the Company’s account number and Bank.

Difference between Invoice and Receipt

Invoice or invoice is a document issued by the seller. Contains billing payments for buyers. While the receipt is proof that a transaction has occurred in terms of receiving money from an activity for payment of goods.

The invoice contains transaction details such as date, item details, costs, total bill, also includes the recipient’s name, seller’s name and others. While the receipt itself usually only contains evidence of recording of spending money and proof of records of receipt of money.

Invoices are made for payment bills, while receipts are made as proof of transactions that have been paid off with signatures.

So that’s the article about Understanding Invoice this time, hopefully it will be useful for all of you. Thank you for visiting this article, see you later.