A sales invoice template is used by a business entity looking to recoup accounts receivable from a customer. Once delivered, either by mail or electronically, the customer will have a set time frame to cure the debt stated on the invoice. The invoice should gives details of the items sold, the amount owed and when it’s due, and any discounts issued.
- Bill of Sale Invoice
- Car/Vehicle Sales Invoice
- Computer Sales Invoice
- Sales Return Invoice
- Sales Tax Invoice
- Retail Sales Invoice
- Sales Commission Invoice
What is a Sales Invoice? (definition)
A sales invoice looks similar as to a receipt with the exception that it demands payment be made instead of showing payment as being paid. Any type of business where an item is sold will use a sales invoice to show an item as paid or unpaid. Items bought that are then physically shipped to the customer’s address will always include a sales invoice for (1) showing proof of a transaction and (2) if sent to country with a VAT, the tax amount can be calculated.
Sales Order vs Invoice
A sale order is created when a customer initiates a purchase. Most of the time, a sale order is used when an item bought isn’t transferred immediately from the seller to the buyer. Anytime an item is bought online, a sale order is created in order for the business to prepare the item to ship. An invoice, however, is primarily used to demand payment for an order placed or already received by the customer. Once a sales order is approved and completed by a seller, an invoice will be created to show the payment status. Unlike an invoice, a sales order will never be seen by the customer and it typically gets discarded once a transaction is completed.
Bill of Sale vs Invoice
A bill of sale is a document, sometimes required by law when purchasing an item, that proves payment was made and received by the seller. Most notably, a bill of sale is used when a vehicle is bought and sold which helps give confirmation to the transfer of title. Unlike an invoice, a bill of sale does not demand payment, instead it proves payment was received by the seller to protect the buyer from any future claims.