What Is Depository Fiscal Establishment Notation ? Meaning, Contents In Addition To Functions

Meaning of Invoice ↓

Invoice is a bill which indicates the total that is to move paid yesteryear the buyer to the seller. There is no criterion shape or agency of invoice in addition to equally such it tin strength out move designed equally per the requirements of the seller. It tin strength out move prepared inwards 3 or to a greater extent than copies equally required yesteryear the parties concerned. The invoice may move sent along alongside the goods or at a afterwards date. When cash is paid at the counter of the store in addition to then cash memo is issued yesteryear the seller to the buyer.

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Contents of Invoice ↓

The invoice contains next principal items :-

1. The refer in addition to address of the seller.
2. The refer in addition to 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 cyberspace total payable yesteryear the buyer.
6. Terms in addition to weather of payment.
7. Country of rootage (in illustration 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 in addition to Omissions expected).
15. Any other details, if required.

Functions of Invoice ↓

The functions of Invoice are equally follows :-

1. The buyer comes to know nearly the total to move paid to the seller.
2. He tin strength out depository fiscal establishment tally the invoice toll against the quotation/proforma invoice price. If whatever departure he tin strength out form it out alongside the seller.
3. It helps the buyer to produce the toll for resale.
4. The invoice helps the buyer to verify the actual goods received.
5. It helps to ready debit annotation or credit note.
6. It tin strength out move used equally an prove inwards the courtroom of law.
7. Invoice facilitates the seller inwards checking upwards the full majority of sales in addition to inwards verifying the stock balance.
8. It enables the buyer to brand entries inwards the books of account.
9. It enables the seller to brand necessary entries inwards his sales majority in addition to customers ledger amount.
10. It helps the buyer to know the exact due appointment of payment to the seller.