DIFFERENCE AND RELATIONSHIP BETWEEN A SALES INVOICE AND A PURCHASE INVOICE

A purchase invoice is a business document received by the buyer requesting him to pay a sum of money owed by him at a particular period.

A sales invoice, on the other hand, is a business document sent by the seller to the buyer requesting him to pay a sum of money at a time when on or before a particular date.

Difference Between Purchase Invoice and Sales Invoice

1. A sales invoice is the invoice sent by the seller while the purchase invoice is the same invoice received by the buyer.

2. The source document for the sales journal is the sales invoice, whereas the source document for the purchases journal is the purchase invoice.

3. A sales invoice is used for recording credit sales in the books of account whereas a purchase invoice is used for recording credit purchases in the books of account 

As a result, when a business issues a sales invoice, it indicates that it has an account receivable, and when a business receives a purchase invoice, it indicates that it has an account payable.

4. Because a corporation sells goods to several customers, the invoice numbers of its sales invoices are typically sequential.

As a result, the sales invoice a company issued is which is already pre-numbered.

On the other hand, because a corporation purchases goods from several suppliers, the invoice numbers on its purchase invoices are typically not sequential.

It's so that the company received invoices from multiple suppliers with different invoice numbers, causing its purchase invoice number to not be sequential.

5. The sales invoice shows the amount of money due to be received from a customer plus any discount allowed to the customer.

In contrast, the purchase invoice shows the amount due to be paid to a supplier plus any discount received from the supplier.

6. While a purchase invoice implies that you need to make payment for products, a sales invoice implies that you will need to be paid for goods.

Relationship Between Sales invoice and Purchase invoice

There is a connection between the sales and purchase invoices. When a business sells products to a customer, it issues them a sales invoice.

An invoice that a customer receives from a business after making a purchase is known as a purchase invoice.

As a result, the same invoice is for both sales and purchase invoices. It just depends on whether you're the buyer or the seller.

If you are the buyer, then the invoice is a purchase invoice to you. If you are the seller, then the invoice is a sales invoice to you.

Consequently, the information on the sales invoice and the purchase invoice is identical.

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