A bill or invoice is a commercial payment related document issued for the seller, by the buyer. This includes the details of the products, along with the quantities, with the prices fixed. This way it carries the details of the payment terms fixed between buyer and the seller. The seller is known to offer discount to the buyer if he pays early than the term made. In the industry the description in the invoice must contain, the time of billing along with the terms and conditions. This way the billing carries a high value in the economic dealings of the organization.
There are various types of invoices present. They include:
• Invoice Proforma- this type of invoices is found more in foreign trade. This states the commitment of the seller to provide the sold goods in specific prices and in specific time. This is not recorded as account payable.
• Credit Memo - in this kind of an invoice the buyer returns the goods sold to him and in return gets a memo from the seller of the amount paid to him. This is a kind of refund to make by the buyer.
• Commercial type invoice - this is provided in case where shipping and other things are involved in the dealings between two international agents. This is a kind of primary document based on which the seller and the buyer meets at a point of agreement.
• Debit Memo - at the time when a company can not pay the due in right time a memo of is issued in which he agrees to pay the amount with fine or interest.
There are other various kinds of invoices used in business transaction, but the basic of them is the monetary transaction along with the product dealing and quantity and quality detailing. These are one of the base pillars of a business and hence maintained with utmost care.
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