Proof of transaction is the basis of a financial record. One proof of transaction that is often used by companies is a credit purchase invoice. Even though they often use it in the business world, there are still many people who experience confusion about understanding purchase invoices.
Come on, find out about credit purchase invoices in this article!
Definition of a Purchase Invoice
In simple terms, the meaning of a purchase invoice is proof of a purchase transaction received by a buyer. In other words, it is evidence of a sale made by the seller. In essence, it depends on your point of view.
Purchase invoices can be used as physical evidence if the buyer complains about the goods that have been purchased. Therefore, it is common for the seller to make this invoice even though the buyer does not request it.
Examples of purchase invoices are Purchase Order (PO), Delivery Order, an Offer Letter.
Definition of a Credit Purchase Invoice
If the goods are purchased on credit, the proof of the transaction that comes out is a credit purchase invoice. The purpose of this invoice is proof of invoice from the supplier. In essence, as a record of debt recognition for purchases of merchandise on credit to suppliers.
In a transaction in installments, a credit purchase invoice is useful for the seller as proof of debt collection that must be paid immediately by the buyer according to the agreed terms.
Credit Purchase Invoice Function
Many business people do not know in more detail the function of the purchase invoice for the business processes that are carried out. The following are some of the functions of a credit purchase invoice summarized by swift blogging.
As Proof of Credit Transactions
The main function of this invoice is to prove that there has been a purchase transaction from the company or sales activity from the supplier’s point of view on credit. This invoice contains detailed information about the product along with the price which is very useful for both sellers and buyers.
Invoice Value Information
In the purchase invoice, there is information about the amount of the invoice value for the purchase of goods. This information is used as a reference for the amount of money that must be paid by the buyer to the seller.
Supporting Documents for Financial Records
The purchase invoice is a valid proof of transaction in accounting science. This document is legal evidence for the company’s financial records if needed at any time.
Physical Evidence of Claims
Because it is useful as proof of transaction, the purchase invoice can be used as a claim tool for consumers when making transactions. Consumers can make claims or returns if the goods received are not in accordance with the agreement.
How To Make a Credit Purchase Invoice
Basically, how to make a credit purchase invoice can be done in various ways, either manually or using the help of accounting software. If you use the help of accounting software, the process of making a purchase invoice is very easy, which is as follows:
Step 1: Classifying Transaction Types
First, you must classify the transactions that occur by filling in some data, such as the name of the supplier, date of transaction, delivery number, and shipping costs.
In addition, it also includes the shipping address, billing address, and payment method used. Don’t forget to enter a transaction number which is useful for checking transactions.
Step 2: Fill in Product Information
Next, you must fill in product details such as product name, price (including Value Added Tax / VAT), and a complete product description. If the item is purchased in bulk, please include the price per unit.
If there is a discount, you will also need to enter the information here. Also, add information if the buyer has paid a down payment.
Step 3: Save the Information Already Filled In
This is where the convenience is when you use accounting software to create purchase invoices. The final step is to click “Create Invoice”, then automatically all the information you fill in will be stored in the record.
The purchase invoice is ready to be sent to the buyer. You can print it or send it digitally via email.
One of the accounting software that can be used to help you create credit purchase invoices. He can make it easier for you to manage business finances with the availability of various features, such as financial reports, inventory, transaction reconciliation, including recording purchase invoices and payments.