Legal Definitions - sales invoice

A sales invoice is a formal document issued by a seller to a buyer after goods or services have been provided. It serves as a detailed record of the transaction and a request for payment. This document typically itemizes the products sold or services rendered, including quantities, unit prices, and the total amount owed. It also specifies payment terms, such as the due date and accepted payment methods, formalizing the financial aspect of a completed sale.

• Example 1: Business-to-Business (B2B) Transaction

  Imagine "Office Supply Co." delivers a bulk order of 20 cases of printer paper and 15 new office chairs to "Marketing Solutions Inc." for their corporate offices.

  Explanation: Office Supply Co. would issue a sales invoice to Marketing Solutions Inc. This document would clearly list the 20 cases of paper and 15 chairs, their individual prices, and the total amount due. It would also specify payment terms, such as "Net 30," indicating that Marketing Solutions Inc. has 30 days to remit payment. This invoice acts as a formal record of the sale and a demand for payment for the goods delivered.

• Example 2: Service-Based Transaction

  Consider a freelance photographer, Maria, who completes a photoshoot for "Elegant Events Planners" to capture images for their new promotional brochure.

  Explanation: After delivering the edited photographs, Maria would send a sales invoice to Elegant Events Planners. This invoice would detail the specific services provided (e.g., "Event Photography Package," "Image Editing Services"), the agreed-upon fee for these services, and the total amount due. It would also include her banking details and a payment deadline, formalizing her request for payment for the professional services rendered.

• Example 3: Large Retail Purchase

  A customer, Ms. Chen, purchases a new custom-built dining room table and six matching chairs from "Furniture Emporium."

  Explanation: Furniture Emporium would provide Ms. Chen with a sales invoice upon completion and delivery of her order. This document would itemize the custom dining table and the six chairs, their respective prices, any applicable delivery or assembly fees, and the total amount Ms. Chen needs to pay. Even if she paid a deposit earlier, the final invoice confirms the full transaction details, serves as a record for warranty purposes, and confirms the final balance due.