Invoice vs Statement
Ever wondered why you get a bill or an invoice for other utilities while getting a credit card statement? What is the difference between an invoice and a statement of account? I am sure that like a majority of other people, you will be hard pressed to if asked to come out with differences between an invoice and a statement. You obviously know about a statement of your savings account from your bank, but why is it a statement from your credit card company while an invoice from the gas company as well as electricity company? Let us take a closer look at both these concepts.
An invoice can be considered a request for payment. It is a document that reminds you that you need to pay for the good or services already rendered to you. It is obligatory upon a buyer to make payment to the provider upon presentation of an invoice. If you are using a prepaid account, you are obviously not worried about the invoice but when using a post paid account; you need to make a payment upon receipt of invoice raised by the service provider to enjoy uninterrupted services. An invoice is thus a document from the seller to the buyer that contains the details of all the goods and services and the rates along with grand total with discounts, if any are applicable.
A statement from a supplier to a party lists all the amounts paid by the party along with all the goods and services provided by the supplier till the date mentioned in the statement. At the end of the statement is the amount the party owes to the supplier. So if you are a credit card holder and running a balance, the statement typically mentions the balance brought forward with your purchases of the month, any payment that you may have made in the month along with the current balance that need to pay to the credit card company.
Difference Between Invoice and Statement
• While an invoice is a type of statement, a statement is not always an invoice. For example you keep getting statement of account from your bank, insurance company and so on but they are not bills or invoices. However, your credit card statement is a kind of reminder to make payments.
• A statement typically includes an opening balance, the purchases made in the mentioned period along with payments made by you. At the end is the current balance that you owe to the company.
• While some statements are invoices, there is a prominent ‘This is not a bill’ printed at the bottom of a statement if it is not for bill or invoice purposes.