Meaning of Invoice and Its Differences from Receipts and Notes, Also Know Their Functions - Types

Kapanlagi.com - Invoice is certainly not something unfamiliar to those of you who often engage in large-scale buying and selling activities. This term is certainly well-known by accounting students. Invoice is also considered an official document that can be used as a reference in a transaction. So, what is the actual meaning of an invoice?

The meaning of an invoice is the same as the meaning of a receipt. This term has actually been absorbed into the Indonesian language as "invois". In terms of form, an invoice can be said to resemble a receipt and a note. However, there are quite detailed differences between these three payment proofs in a transaction.

Therefore, besides finding out the meaning of an invoice, also explore information about receipts and notes. Knowledge in this field will help you in managing bookkeeping.

Moreover, if you already have the intention to enter the business world. Awareness of the importance of recording company transactions must be built from an early age. Well, as one of the steps in learning, you can read the complete information about the meaning of an invoice and its differences from receipts and notes below.

1. Meaning of Invoice

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The meaning of invoice can be easily understood as a billing tool from the seller to the buyer. However, according to the Kamus Besar Bahasa Indonesia (Indonesian Dictionary), the meaning of invoice is a list of shipped goods accompanied by information such as name, quantity, and price that must be paid.

This term has also been absorbed into the Indonesian language as "invois". Usually, an invoice is also accompanied by a payment deadline according to the agreed date. Generally, an invoice is made in triplicate, which will be given to the buyer, held by the seller as a billing attachment, and kept in the invoice book.

To understand it better, you can also examine the components and contents of the invoice below. Because it plays an important role in recording company transactions, its contents are more detailed and seem more complicated than receipts and notes.

1. Invoice issuance date

2. Invoice number

3. Name and address of the parties involved (seller and buyer)

4. Details of the goods or services that are the subject of the transaction, including quantity, unit price, and total amount paid.

5. Discount

6. Tax

7. Payment deadline or due date

8. Payment terms and conditions

9. Selected payment system such as cash, credit, or using a debit card.

2. Difference between Invoice, Receipt, and Note

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After understanding the meaning of an invoice in the above explanation, you might wonder, what is the difference between a receipt and a note? That is a valid question because these three documents are the most commonly used tools in transactions between sellers and buyers.

Moreover, at first glance, their functions seem to be the same, explaining the product, price, and payment in a transaction. However, there are differences between these three things that must be understood. An invoice is usually issued after the buyer places an order and the payment will be made at a later date.

Meanwhile, a receipt is a proof of payment given by the seller to the buyer after the payment. A note can be said to be similar to a receipt issued after payment, but the price written on it is the price that is not subject to tax.

3. Invoice Function

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It feels incomplete if you already understand the meaning of an invoice, but do not know its function in business. To complete your knowledge, you can read about several functions of an invoice in the following explanation.

- As a form of financial transparency between the seller and the buyer.

- When there is a discrepancy in bill payment or product delivery, the invoice can serve as a valid reference.

- As a record of production to facilitate business owners in monitoring company progress.

- A tool to facilitate financial bookkeeping.

- A valid proof of incoming and outgoing orders.

4. Types of Invoice

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Not only the function and meaning of an invoice, as someone who will enter the business world, you also need to understand the types of invoices. This transaction tool will greatly assist you in recording transactions and monitoring company progress. You can find explanations about this in the following information.

- Ordinary invoice: a simple transaction invoice that usually includes the ordered products, quantity, unit price, and total price in a transaction.

- Proforma invoice: a temporary invoice issued when the buyer makes partial payments. Due to its nature, this invoice is called a temporary invoice.

- Consular invoice: a special invoice issued for international transactions such as import and export.

KLovers, that's the explanation of the meaning of an invoice along with its functions and types that you need to know. Such knowledge is useful for those who want to enter the business world. By understanding various transaction proof tools, you will find it easier to do bookkeeping and monitor company progress.

(kpl/gen/ans)