An invoice records a sale that the customer will pay later. It increases accounts receivable and earned revenue. Choose the customer, invoice date, terms and due date, then enter product or service lines. Terms describe when payment is expected; they do not change when the work was earned.
Sales tax collected for a taxing authority is a liability. Apply the stated rate only to taxable lines. This course supplies fictional rates for arithmetic practice and does not determine whether a real sale is taxable. A mixed invoice can contain taxable products and nontaxable services. Review the subtotal, tax and total separately. A sales receipt is the appropriate form when the customer pays at the time of sale.