What Is Account ? Meaning, Contents In Addition To Functions

Meaning of Invoice ↓

Invoice is a bill which indicates the sum that is to endure paid yesteryear the buyer to the seller. There is no criterion cast or mode of invoice together with equally such it tin endure designed equally per the requirements of the seller. It tin endure prepared inward 3 or to a greater extent than copies equally 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 thus cash memo is issued yesteryear the seller to the buyer.

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Contents of Invoice ↓

The invoice contains next original items :-

1. The advert together with address of the seller.
2. The advert 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 internet sum payable yesteryear the buyer.
6. Terms together with weather of payment.
7. Country of beginning (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 equally follows :-

1. The buyer comes to know almost the sum to endure paid to the seller.
2. He tin cheque the invoice cost against the quotation/proforma invoice price. If whatever deviation he tin kind it out amongst the seller.
3. It helps the buyer to laid upward the cost for resale.
4. The invoice helps the buyer to verify the actual goods received.
5. It helps to laid upward debit annotation or credit note.
6. It tin endure used equally an testify inward the courtroom of law.
7. Invoice facilitates the seller inward checking upward the full majority 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 majority together with customers ledger amount.
10. It helps the buyer to know the exact due appointment of payment to the seller.