Sales Invoice Template

A sales invoice template is used by a business to collect payment from a customer. Once delivered, either by mail or electronically, the customer will have a set timeframe to pay the debt stated on the invoice. The invoice should detail the items sold, the amount owed, when it’s due, shipping costs, and any discounts issued.

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What is a Sales Invoice?

A sales invoice looks similar to a receipt except that it demands payment is made instead of showing that payment has been paid. Any 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 a country with a VAT, the tax amount can be calculated.

Sales Order vs. Invoice

A sales order is created when a customer initiates a purchase. A sales order is usually 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 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 confirm the transfer of title. Unlike an invoice, a bill of sale does not demand payment; instead, it proves that the seller received payment to protect the buyer from any future claims.