What Is Account ? Meaning, Contents Too Functions

Meaning of Invoice ↓

Invoice is a bill which indicates the total that is to endure paid yesteryear the buyer to the seller. There is no measure cast or mode of invoice together with every bit such it tin endure designed every bit per the requirements of the seller. It tin endure prepared inward 3 or to a greater extent than copies every bit required yesteryear the parties concerned. The invoice may endure sent along amongst the goods or at a afterwards date. When cash is paid at the counter of the store together with thence cash memo is issued yesteryear the seller to the buyer.

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Contents of Invoice ↓

The invoice contains next brain items :-

1. The cite together with address of the seller.
2. The cite together with address of the buyer.
3. The description of goods i.e quantity, quality, weight, size, etc.
4. The value of goods, less discounts, if any.
5. The cyberspace total payable yesteryear the buyer.
6. Terms together with weather condition of payment.
7. Country of root (in illustration of export trade)
8. Mode of transport.
9. Freight charges.
10. Insurance premium.
11. Bill of Lading or Railway Receipt Number.
12. Signature of the seller.
13. Date on which the goods are despatched.
14. E. & O.E. (Errors together with Omissions expected).
15. Any other details, if required.

Functions of Invoice ↓

The functions of Invoice are every bit follows :-

1. The buyer comes to know near the total to endure paid to the seller.
2. He tin depository fiscal establishment represent the invoice toll against the quotation/proforma invoice price. If whatsoever departure he tin form it out amongst the seller.
3. It helps the buyer to produce the toll for resale.
4. The invoice helps the buyer to verify the actual goods received.
5. It helps to ready debit annotation or credit note.
6. It tin endure used every bit an prove inward the courtroom of law.
7. Invoice facilitates the seller inward checking upwards the full mass of sales together with inward verifying the stock balance.
8. It enables the buyer to brand entries inward the books of account.
9. It enables the seller to brand necessary entries inward his sales mass together with customers ledger amount.
10. It helps the buyer to know the exact due appointment of payment to the seller.