Invoice has an important role in accounting as it is the documented proof of a transaction. It is a piece of paper that is issued by the seller to the buyer. The invoice contains information about the price, quantity and the description of the product that is sold by the seller to the buyer. Another piece of Information that is also stated on the invoice is that of the payment term that shows the time period in which the buyer has to make payment to the seller. Seller and buyer view the invoices in different perspectives as for the seller the invoice is the sales invoice and for the buyer it is a purchase invoice.
There are different sections of an invoice and the typical invoice contains a number of different things such as the title “Invoice”, a unique reference number, date on which invoice is issued, credit terms of the invoice, name and other details of the seller, delivery date or the sent date of the goods or products, purchase number associated with the products, unit price of the products and the total amount of all the products. Another Important piece of information that an invoice must have over it is that of the payment mode of the transaction. It can either be cash or through credit card. Invoices are of different types and categories such as Pro Forma, Credit Memo, Commercial Invoice and Debit Memo.