Invoices meaning
This is to make sure that the bills are paid on time.
Invoices meaning series#
When you process your invoice, you need to get into a series of procedures, which properly handles the invoice. That way they can settle some problems and be able to resolve it as soon as possible. If the company sends an invoice for the items delivered, the receiver or the other company can use the invoice to compare the items they have received if the items matched correctly. The invoice can also be used for inventory and checking. Everyone has the right to challenge any suspicious and abusive documents in the court. These are called corroborative evidences, which prove that the items do really exist or the service was actually received or performed. This document will only be legitimate if there other evidences that backed up the invoice such as duplicate bills, an inventory and other records that they have. Good thing, the law will not allow this document alone as evidence. They can use invoice as their evidence to fulfill their scheme. However, some companies might abuse the use of invoice by making false documents that there are funds missing due to unpaid items.
Since this document is legal and authentic, this can also be used on court proceedings if there are legal matters argued, like unpaid debts, because the invoice is an evidence of a legitimate debt. This document is very helpful to aid their monthly financial report and evaluation. With this document, they can keep track of all their transactions and their expenses. The invoice is very use for both the supplier and the receiver of supplies. The service person or the one who delivers that particular item may not collect the payment immediate for the delivered item so company A will send and invoice to company B indicating the number of items taken and the amount to be paid. For example, the “company A” which is the supplier delivers boxes of soda to “company B” everyday. However, this particular incident usually happens if the transaction is on delivery orders. When the person or the company had paid for the items and services, then the invoice will be marked paid by the supplier and the receipt will be issued. Once the company or the person gets some goods with payments to follow and not during the time, the goods or services are taken, an invoice will be issued. Practically an invoice is a document that states an incurred debt. Therefore, when the invoice comes in, the payment will follow instantly or according to the due date given. Usually, the company and the supplier of goods or services had made a deal for that particular transaction. The invoice will be forwarded to the secretary, the accountant or the person in charge for the reimbursement of the fund to pay the amount on the invoice. The items listed on the invoice are items that are to be paid by the company or an organization. The prices were also written usually on the right side and the total amount to be paid on the lower right side.Īn invoice is not a receipt. This is a type of document where all the details of the product taken, the description of the service, how many hours to bill and other things subject for payment are written there. What Is An Invoice?Īn invoice is a document or a bill issued by salesperson, vendors, suppliers and other services rendered for a company or a person.
Invoices meaning software#
Bottom line: get excel tricks and software from this website, …for everything else refer to your business/tax advisor. So this is the background for some “one size fits all” business scenarios, used to explain related excel features later, therefore terminology, meaning and legal stuff may not apply in your country. First of all a short disclaimer: the objective of this article is to set the background for further articles where we discuss some ways to automate common back office tasks using excel and it give general definitions to which we will refer later.