Meaning of Invoice

Invoice is a bill which indicates the amount that is to be paid by the buyer to the seller. There is no standard form or
style of invoice and as such it can be designed as per the requirements of the seller. It can be prepared in three or
more copies as required by the parties concerned. The invoice may be sent along with the goods or at a later date.
When cash is paid at the counter of the shop then cash memo is issued by the seller to the buyer.

Contents of Invoice


The invoice contains following main items :-
1. The name and address of the seller.
2. The name and address of the buyer.
3. The description of goods i.e quantity, quality, weight, size, etc.
4. The value of goods, less discounts, if any.
5. The net amount payable by the buyer.
6. Terms and conditions of payment.
7. Country of origin (in case of export trade)
8. Mode of transport.
9. Freight charges.
10. Insurance premium.
11. Bill of Lading or Railway Receipt Number.
12. Signature of the seller.
13. Date on which the goods are despatched.
14. E. & O.E. (Errors and Omissions expected).
15. Any other details, if required.


Characteristics:
It must have the commercial operation in retail, identifying the buyer and seller of the goods and service,
the amount in numbers and in letters, the currency in which it is made, the place and date, the payment
conditions, the amount and description of the product and service, its delivery conditions, as well as the
tax collection details. It is important to state that it is an exchanging Invoice or a purchase sale one, its
identification number, and the acceptance signature of the parties so that legal effects can take place. As
for the tributary matters, it is essential the tributary identification of the seller and the buyer, and the VAT
retention quality over the sales. The original Invoice is issued and given and there are as many copies as
necessary so that every party has one, and one copy is processed and they are given to the competent
legal entities.