Any company, be it small scale or big scale, is required by government institutions to give a formal document requesting a client’s payment, which is called the sales invoice. This particular document is a vital instrument in any business’ daily grind.That is why, if you are a newbie business owner, manager, or salesperson, then you must be baffled on how to create a sales invoice that fits your company’s needs perfectly. Worry not, for here at sampletemplates.com, we have collected Invoice Samples that you can download and customize easily according to your needs.
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What Is a Sales Invoice
A sales invoice is a commercial instrument that contains the itemized details of the products or services that a customer must pay for. This document serves as the formal request of payment from the salesman or business owner toward his or her clients. The issuance of sales invoices is an essential part of any business transaction. This cements the mutual agreement between product or service provider and client or customer.
A sales invoice is normally given to the client during the following circumstances:
- After the customer has taken possession of the product.
- After the service provider or the business has finished completing the service agreed upon with the client. For example, after a seamstress shall have finished sewing his or her client’s bridal gown, this is the part when a sales invoice is necessary.
- In exceptional circumstances, a sales invoice may also be given even before the delivery of the product or the performance of the service.
Difference Between an Invoice and a Receipt
A sales invoice serves as a request and it is given prior to the customer’s payment; whereas, a receipt serves as a proof of payment, hence it is issued only after a customer has paid.
For more reference on how a sales invoice looks like, you might want to check out our gallery of Generic Invoice Samples and Free Printable Invoice templates. Just click on the link provided and browse freely!
Editable Business Invoice Sample
Free Printable Business Invoice Form
Free Sample Business Invoice Form
Advantages of Using an Invoice
When you hand out invoices, it is natural that you retain a copy for your own company’s archives. This way you can keep a record of all your business transactions. By having a record, you can pull out these documents in case there are disputes in the future such as price discrepancies, reimbursements due to defected products, etc.
- Tax Purposes
Taxes are natural fixtures legal business transactions. That is why you can prove to your customers how valuable their patronage is by being transparent to them in terms of the amount of value added tax that they are paying for on top of the basic product or service charge. Additionally, tax forms often require proofs of business transactions in order to track the credibility of your income report, and sales invoices are one of the legally acceptable proofs of transactions.
- Future Legal Reference
In case your customer refuses to honor his end of the bargain by withholding payment, as a business owner, you have the option to litigate in court and show a copy of your sales invoice as proof of your formal and initial request for payment.
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