The invoice informs your client of the amount they must pay you as well as the payment terms they must adhere to. Sometimes, vendors refer to it as a “sales invoice.” If you’re selling to a company, the invoiced amount is recorded as money that will be deducted from their account as accounts payable. It becomes a part of your accounts receivable revenue that goes into your account for bookkeeping purposes.
Uses for invoices Keeping track of Records The capacity to maintain a legal record of the sale is the main advantage of an invoice. This makes it easy to learn who purchased, sold, and when good was sold. payment monitoring . An invoice is a crucial piece of accounting equipment. Keeping track of payments and balances outstanding benefits both the vendor and the customer.