We go through a lot of transactions daily and we get across words like Invoice, Bill and Statement, and we assume as we exactly know the meaning of these terms but that is not the case, but there is a lot of difference between these terms and their way of usage.
Here we will come across these terms in depth and find out when and how they can be used, and this is a major terminology which tends for payment and asking for payment, and their importance of Invoice and Bill as they document the services completed or product bought by a client with an overall amount owed thereby.
This is a proof for Vendor for selling their any respective items and a proof for Customer as they have bought the products by paying a valid amount, and in this article we will be explaining the major difference between Invoice and Bill.
What is an Invoice – What does Invoice mean actually?
An Invoice a list of products sold or produced serviced having a total describing quantity and total amount at the end owned, and this is always sent to the client by a service provider or biller to ask for payment for the service provided or product bought.
It is termed as a request for payment that does contain information which is necessary to remit payment, and Invoice include Name, Address, Terms of Payment, Account Number if necessary
What is a Bill – How does a Bill work?
This consists of an amount that a Client should pay, and it is an Invoice of items with a list of products with a brief of money for each quantity, and the list first will be provided as an Invoice as intimation and the same taken on Bill which will be confirmation for payment, where the total amount on statement is a must to be paid by the client and thus it is verified.
Dictionary Defines Bill as “Document Evidencing the Parties Indebtedness to another, such similar to an Invoice”
Example: A Lawyer bills a client for their billable hours and in return Client pays the billed amount, and on the other side, the work which has been considered will be taken on paper as invoice. Thus, Invoice will be a documented proof of Lawyers work for Client and Bill will act as claim to the working hours processed.
Many people think that Invoice and Bil are the same. But they are different and have different roles in various businesses, such as Invoice or Bill in SAP can be different from Invoice in Supply Chain but their real meaning does not change.
No, voucher is a type of gift card and it is not similar to either Invoice or Bill.
Only paid bills are allowed to submit for income tax as per the rule IT sections, so check the section under which you have to claim or not