They cover basic details like product name, quantity, price, and total. (and might even include more details depending on the type of the invoice - e.g., a commercial invoice may include shipment details, too). They include aspects like the invoice number, an itemized list of products, description of each product, quantities, prices, etc. In terms of content and structure, invoices are more detailed. Invoices can be created by small businesses, large businesses, contractors, freelancers, and anyone else who produces a product/service for you.īills, on the other hand, are created by merchants, such as grocery shops, restaurants, department stores, and shopping complexes, and they are generated for customers (these customers are usually individual entities, not a business). Invoices are specifically created for clients (aka, other businesses both large and small, freelancers, corporations, or individuals) - that’s to say, all other entities who may also have their own business and use invoices to track payments, maintain records, and for accounting purposes. Getting to the crux of the topic, let’s discover the key differences between a bill and an invoice. Invoice: What are the key differences between the two? InvoiceĬreated once the product/service is delivered The purpose of a bill is to get paid as soon as the seller delivers the product or service and to serve as proof of payment and completed transaction.īills are mostly used by grocery marts, restaurants, shopping stores, and hotels, whereas invoices are prepared for clients. Name of the product/service (and its subsequent price and quantities).While an invoice is more detailed, a bill only states the basics, such as: Invoices can also be of different types and be produced for different purposes.įor example, some invoices are recurring, whereas others are developed for one-time transactions.īills, on the other hand, are documents merchants create for business transactions to signify the amount of money a customer owes them. Charges such as discounts, taxes, and interest fees.An itemized list of all products, quantities, description of the products, price of each product, etc.Unlike bills, invoices are also more detailed, usually containing elements such as: Users can also amend the conditions of a contract with respect to invoicing (e.g., under “Payment Terms,” you can write due dates, payment methods, or charges like late fees). Likewise, when you receive payment for your invoice also depends upon the agreement you have with your clientele (which is why it’s always beneficial to have a contract in place stating all payment terms, conditions, payment options, the scope of the project, and other such details). When you send your invoice depends upon the agreement you have with your clients. These documents are usually sent when a project has been completed, a milestone has been achieved, or at timely intervals (e.g., at the end of the month, bi-monthly, etc.). What’s an invoice, and what does it have?Īn invoice, also known as a sales invoice, is a commercial document made by business owners and freelancers to request payment from their clients. Usually created for short-term and one-time tasks. Occurs at timely intervals (e.g., end of month, end of project, etc.). Larger by comparison, and have multiple elements. Smaller in size, and contain a few basic details.
Usually created for individual customers.
Sales invoice template free how to#
Here, we’re detailing for our readers exactly what bills and invoices are, and how to differentiate between the two. If you’re questioning the exact same thing, this article is for you. One might even question where the similarities stop, and where the differences begin.
So, it’s established that in the Venn diagram of payment-related documents, invoices and bills merge together in many ways. Created by the seller or the merchant who sold the product or service.Required so that businesses can get paid.Made with the specific purpose of requesting payment.Created to show proof of payment request.Invoices and bills are two sides of the same coin.
0 kommentar(er)
