Source of documents

Invoice

An invoice/bill/tab is a commercial documents issued by the seller to the buyer relating to sale transaction. An invoice indicates the quantities and costs of the goods or services rendered.

1. Payment terms are stated on invoice 

2. Offer discount if paid before due date.

3. If already paid, then PAID stamp on invoice.

Voucher

A voucher is an important document used by company's account payable department for maintaining accounting records. It is supporting document for an invoice.

1. Supporting document for an invoice.

2. Backup document for accounts payable.

Cash Memo

A cash memo is a business voucher. it is prepared when goods sold or purchased for cash. i.e. cash receipt and payment. Also know as cash voucher.

Credit Note

A credit note is a commercial document issued by a seller to a buyer. Credit notes acts as a source of document for the sale return. 

1. Sales Return

2. Goods purchased by purchaser on credit.

3. To notify the purchaser that credit is being applied to their account.

Why and When Credit Note Prepared:

1. In the event of invoice error

2. Incorrect or damaged products