I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider



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invoice

 relates to a sales order or a purchase order. 

(a) 


When a business sells goods or services on credit to a customer, it sends out an invoice. The 

details on the invoice should match the details on the sales order. The invoice is a request for the 

customer to pay what they owe. 

(b) 


When a business buys goods or services on credit it receives an invoice from the supplier. The 

details on the invoice should match the details on the purchase order. 

 

The invoice is primarily a demand for payment, but it is used for other purposes as well, as we shall see.  



Most accounting software packages can generate invoices; however, in smaller businesses with paper 

based systems, the invoice is often produced on multi-part stationery, or photocopied, or carbon-copied. 

The top copy will go to the customer and other copies will be used by various people within the 

business.  

1.2.1 What does an invoice show? 

Invoices should be numbered, so that the business can keep track of all the invoices it sends out. 

Information usually shown on an invoice includes the following. 

(a) 


Name and address of the seller and the purchaser 

(b) 


Date of the sale 

(c) 


Description of what is being sold 

(d) 


Quantity and unit price of what has been sold (eg 20 pairs of shoes at $25 a pair) 

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