What is an Invoice and Its Types [Explained]

What is an Invoice

Invoice is a payment which is made by the seller from the buyer in getting the payment from them. It includes the payment made for the goods that the buyer has taken from the seller.

It is the document made by the seller who gives to the buyer which shows the information or various products and services which is given by the seller. Before the time we use paper was there for such documents.

Now the online payments are allowed are now its requirement for all the transactions in business. There are basically two types of invoices.

Types of Invoice

1. Sales invoice

Buyer holds money of the seller, so the bill needs to take for the sale made of the goods or other service which is known as a sales receipt.

2. Purchase invoice

The buyer holds the cost of goods and services which he has to give to the seller, then such statement which he holds is known as the purchase receipt.

How To Create A Invoice and Send it

Follow these steps to know the complete process of creating an invoice to received payment.

Step 1

Firstly, add all the details of your items. It may include the services, date, quantity along with the other options.

Step 2

Then open the required page. Now select the blank document which gives on the new option. If such is not visible, then you can also use the file option and go to the now button.

Step 3

Now you have created the heading of bill. It includes various information about the user. You can easily add the type of design there as per your choice.

Step 4

After that, add the date there, click on the insert option and then date and time to select the required format.

Step 5

Give the number to the required invoice as each invoice should contain a unique number. Now add the information of the client along with which add the address or the department number.

Step 6

Now send the invoice to the required address by pressing the send option.