What Is The Invoice?
The business invoice is an essential legal document made by the vendors or service providers and used to give to the clients or the customers as a record of goods or services rendered to that particular customer or a client. An invoice or a bill is actually a commercial documents issued by the seller to the buyer including each and every important detail of the product or services such as its name, quantity, prices for particular product or service. The service provider needs to retain the copy of invoice as record of sales and the customer needs to retain the copy of invoice as a record of purchases. Basically an invoice has the two sides. From the seller point of view, it is a sale invoice while from the buyer point of view, it is a purchase invoice.
How to Write an Invoice?
Some sellers used to send the invoices together with delivery of goods or some send it separately in the mail after the delivery of the products or services. Basically, an invoices is divided into three parts like its header, middle part i.e. body and footer.
In top of the page, word Invoice or a bill should be clearly written. In case if you are registered to bill and collect tax, then you should mention the word tax invoice at the top of page and also include tax registration number just below the tax invoice word. The top part of your invoice should include your business name, address, telephone numbers, web addresses etc. You can also include your business registration number. Include the invoice number which is nothing but the running serial number that you maintain. You should have only one number per invoice issued. Two invoices should not have the same numbers. An invoice should have the date column for the transaction detail for future. It also contains the payment term or how soon you expect for the payment for example cash mode, debit card or credit card mode. It also includes customer name, address and contact details.
The middle part of the invoice should contain detailed description about the products you are supplying to your customer. It may include date of the product was sent to buyer, purchase order number, product’s description, quantity, unit of measurement, unit price of the products, total amount for the each individual items.
In the invoice footer, you should include total amount of all products, the tax amount and final total after tax, payment modes and other details like delivery instruction, goods return policy, overdue payment policy etc.
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