What is Invoice?
An invoice is a document a seller issues to a buyer that lists the goods or services supplied, their prices and the amount due, usually with payment terms.
Updated
Meaning
English
An invoice is a document a seller issues to a buyer that lists the goods or services supplied, their prices and the amount due, usually with payment terms.
Roman Urdu
Invoice woh document hai jo bechne wala khareedar ko deta hai, jis me saman ya service, qeemat aur wajib-ul-ada raqam aur payment ki shart hoti hai.
Also called bill, sales invoice, tax invoice.
Example
A hardware distributor supplies 40 bags of cement to a contractor and issues an invoice for 52,000 rupees, payable in 15 days. The contractor pays half now and half on the due date.
How it works
A receipt says "this has been paid"; an invoice says "this is what you owe". In wholesale and business-to-business trade in Pakistan, goods often go out on credit, so the invoice is the record both sides use to settle the account. It carries the seller's and buyer's names, a unique number, the date, item lines and the terms, such as payment within 15 or 30 days.
If the seller is registered for sales tax, invoices to other businesses usually need to be sales tax invoices with the extra fields the law asks for. Unpaid invoices are the shop's receivables; unpaid supplier invoices are its payables.
In Nafaa
A Nafaa bill can be printed on 58 mm or 80 mm thermal paper or as a full-page A4 invoice for business customers, and a bill left unpaid goes to the customer's khata so the balance is tracked until it is cleared.
Related terms
- Receipt
A receipt is the slip given to a customer as proof of payment, listing what was bought, the prices, any discount, the total and how it was paid.
- Sales Tax Invoice
A sales tax invoice is the invoice a sales tax registered person must issue for a taxable supply, showing the details the Sales Tax Act, 1990 requires, including both parties' registration numbers and the tax charged.
- Accounts Receivable
Accounts receivable is the money customers owe a business for goods or services already supplied on credit.
- Credit Note
A credit note is a document a seller issues to reduce what a buyer owes, usually because goods were returned or an invoice was overcharged.