• A A

Home > Business > Finance > Invoice and Bill Compared

Difference Between Invoice and Bill

Invoice vs Bill
 

Invoices and bills are documents that are presented to buyers by sellers for commercial purposes. Invoices and bills are quite similar to one another as they both contain information about the goods that are being sold, and the total price that should be paid. There are, however, a number of differences between the two. The article clearly explains what an invoice is and bill is, and points out their similarities and differences.

Invoice

An invoice is a document that lists out the products that are purchased, quantities, and prices that have been charged for the products that are being sold. The invoice will be handed over by the seller to the buyer, and can be handed before or after the products/services are provided. Unless the buyer has made a payment in advance, the invoice is a reminder that payment for the goods need to be made, even if it is not immediately. Invoices are mostly used when goods are shipped to customers (through companies such as Amazon, eBay, etc.). The invoice could come after or before the goods are shipped; if it comes after the payment is made it can act as an indication of the items that were ordered so that the invoice can be cross checked with the contents of the shipment. If the invoice is sent before payment is made, it will also act as a reminder that the payment will have to be made at a later date. The invoice is more of a record of the items that were purchased, and less a request for payment.

Bill

A bill is a document that is handed over by the seller to the buyer which acts as a request for payment. Bills are presented at restaurants, car service firms, credit card companies, super markets, shops, and other product/service providers. The bill will record the items that are sold, their prices and the total price that needs to be paid for all goods and services (including taxes and other service charges). The bill will be presented to the buyer with the expectation that the payment will be made in full immediately. If a person or corporation fails to make a payment for goods or services purchased, collections companies are appointed to collect any funds that are due. Bills will also usually include a deadline for payment to be made, especially for goods that are purchased online.

What is the difference between Invoice and Bill?

Invoices and bills are commercial documents that are passed by the seller to the buyer when goods are being purchased, delivered or when a purchase order is being made. There are items in both that are similar to one another even though they are quite different in terms of the purpose for which they are used. An invoice will be used as a record of the purchase made and will include information such as the goods purchased, quantity, amount to be paid and any advance payments made. Invoices maybe presented before or after the goods are delivered. The presentation of an invoice is not an immediate request for payment, and the payment can be made at a later date. A bill, on the other hand, is a request for immediate payment. The bill will also contain information about the purchase and will clearly outline the total amount that needs to be paid.

Summary:

Invoice vs Bill

• Invoices and bills are commercial documents that are passed by the seller to the buyer when goods are being purchased, delivered or when a purchase order is being made.

• An invoice is a document that lists out the products that are purchased, quantities, and prices that have been charged for the products that are being sold and any advance payments made.

• A bill is a document that is handed over by the seller to the buyer which acts as a request for payment.

• An invoice is used as a record of the purchase made. Invoice maybe presented before or after the goods are delivered, and it is not an immediate request for payment.

• A bill, on the other hand, is a request for immediate payment.


email

Related posts:

  1. Difference Between Receipt and Invoice
  2. Difference Between Invoice and Statement
  3. Difference Between Proforma Invoice and Commercial Invoice
  4. Difference Between Invoice and Purchase Order
  5. Difference Between Cheque and Bill of Exchange

Tags: ,

Copyright © 2010-2012 Difference Between. All rights reserved.Protected by Copyscape Web Plagiarism Detection
Terms of Use and Privacy Policy : Legal.
hit counters
eXTReMe Tracker
hit counters