A sales invoice in financial accounting is a tool that a company uses to communicate to clients about the sums that are due in exchange for goods that have been sold. A sales invoice should include information about which items the customer has purchased, the quantities he has bought, discounts he has received, and the total amount he owes. In addition, a sales invoice should contain a brief summary of the terms of the transaction, such as the acceptable lag time between the sale and the payment.



<b>A sales invoice can be computerized or handwritten.


</b>•Sales Invoices and Ledgers

<em>A sales invoice represents revenue that your company has earned. Using the accrual method of accounting, which treats a sale as income even before you have actually been paid for it, a sales invoice is an item to be entered in the revenue section of your ledger. Your total business earnings is a figure that includes the total amount of all of your sales
invoices for a given period, as well as any additional income that your company has earned, such as from sale or rental of business property. Sales Invoices and Accounts Receivable Your financial accounting should also include a system for keeping track of which sales invoices have been paid by your clients, and which transactions represent revenue that still needs to be collected. Accounts receivable is the accounting term that describes sales or transactions that your business has made for which payment is still due. Keeping track of accounts receivable enables you to efficiently bill delinquent customers, and also provides information about whether cash flow shortfalls stem from low sales volume or customers who are slow to pay.

By: <a href="http://twitter.com/am_oyinlade" alt="Olawale David Oyinlade">Olawale David Oyinlade</a>