Never use phrases like “payment within 30 days,” since the customer will have no real way of knowing when you sent the invoice and assume they have 30 days from the moment it is received. Don’t make this vague provide an actual, hard date by which you anticipate payment. Payment Due Date: Including a due date gives a hard deadline to the customer for when you expect payment. Payment Terms: Spell out penalties for late payments as well as acceptable payment methods, such as debit or credit cards, cash, or some other form of payment.Ħ. You may want to list unit prices depending on how detailed your records need to be for your sales transactions.ĥ. These should have corresponding dates and prices, as well. Itemized List: Include a list of products and services rendered to the customer. If the IRS ever comes calling, you’ll want to have accurate records.Ĥ. Invoice Number: Invoice numbers should be part of your overall strategy to create a paper trail for your bookkeeping. If your sales invoice is meant for one person, use the customer’s name instead of a company name.ģ. Make sure this includes “care of” info if a specific person in a company needs to get the invoice directly. Client’s Contact Information: Email, address, phone number, company name. Header: This contains your company’s logo, as well as business details such as an address, phone number, email, or any other pertinent contact information.Ģ. Having the proper layout and flow in a sales invoice is vital. Sales orders are used to show what goods and services have been provided and the itemized and total costs. No, a sales order doesn’t request payment. Both are important for accurate record-keeping of cash flow and business transactions, but typically a receipt is given to the customer on the spot, and an invoice comes after services or products are delivered. Is a Sales Invoice a Receipt?Ī sales receipt shows that payment has already occurred, but a sales invoice is a payment request. They’re a little more complicated than that, so let’s delve into what goes into creating a sales invoice and why they’re important to an accounts receivable department, and indeed the entire company. In its simplest terms, a sales invoice is a record of a transaction between your business and a customer. If you were a savvy, business-oriented kid, you would have provided them with a sales invoice. Remember when you were a kid, and your friend would write you an IOU for, maybe, a stick of gum or a baseball card? Those may be laughably out-of-date examples, but you get the picture.
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