Define Invoice for Recording of Transactions - QS Study
QS Study

Invoice or Bill for recording of transactions

Invoice is a word used by vendors/suppliers when they want to assemble funds from their consumers. When a trader sells goods on credit, he prepares a trade invoice. It includes full details involving to the amount, the terms of payment and the name and address of the seller and buyer. The new copy of the sale invoice is sent to the buyer and its carbon copy is reserved for making records in the books of accounts.

Similarly, when a trader purchases goods on credit, he receives a credit bill from the supplier of goods. If goods or services were purchased on credit, the invoice generally identify the terms of the contract and provides information on the accessible methods of payment. An invoice is also recognized as a bill or sales invoice.