An invoice is a document sent by the seller to the buyer after goods and services have been delivered and provided by the business. It contains a list of products purchased, total amount, and the date due for payment. There are various invoice uses in business, especially in its operations.
A sales invoice serves as a record for the transactions in the business. This allows them to monitor and track the purchases done to ensure that everything is up to the company’s standards. If you want to know more about a purchase invoice, you can read more about it below.
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When Is a Purchase Invoice Received?
The document received by the customer after a purchase is called a purchase invoice. A purchase invoice is received by the customer from the seller of goods and services after the items have been delivered to them. There is also a downloadable printable invoice and construction invoice available should you need them.
What Is the Difference between a Purchase Invoice and a Sales Invoice?
A purchase invoice and a sales invoice can be used interchangeably. This is due to the reason that these documents are both created by the seller. The main difference of a purchase invoice and a sales invoice are as follows:
- A purchase invoice is the document kept by the buyer or the consumer. It is called a purchase invoice as it contains all the details about the items acquired by the customer from the business.
- A sales invoice is the document that is kept by the business. This contains the products and services that the company or establishment has sold to its customers. It is used as a reference to the transactions of the company to its customers.
Basically, a sales invoice and a purchase invoice contains the same information. Both differ depending on which party it is for.
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How to Create a Purchase Invoice
When writing a purchase invoice for your business, it is important that you understand the elements that have to go into your invoice. The steps on how to write one are as follows:
- In order to write a good purchase invoice, you can download from the sample invoice templates and cash invoice we have available or you can create your own template.
- Write a header by writing the type of invoice that you are creating.
- Include the name of your business, as well as the address and contact number.
- You can add a logo to your invoice if you have one available.
- Also write the assigned invoice number to your document.
- Write the details of the buyer by stating the name, address, contact number, and other relevant information.
- Write a breakdown of the services and the goods rendered to the buyer. You can create a chart where you can input the items.
- List the individual prices of the items including the additional fees, tax charges, and the total amount to be paid.
- Write the date the payment is due and the terms or methods that a buyer can choose to pay. For example, a buyer can choose to pay cash, credit card, etc.
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