In this article, you will know what is the difference between bill and invoice and how to structure each document properly. You will also see a few examples and find out to make an invoice.
Bill and Invoice Differences
A bill and invoice are terminologies, which are often used reciprocally. Each document is extensively used while carrying out financial transactions. Both have several features in common. However, these documents are quite different from each other. Each document is used at a specific time, for a specific function during a typical financial transaction cycle.
A bill is a document that states the total amount a client owes a supplier or a business after the delivery of goods or services. A supplier sends a bill to their client with the hope of retrieving payment for goods or services. Several businesses send bills to their clients as a reminder for owed payment. A client files the bill into their books as a transaction that requires payment. Also, a bill is in other instances given to a client immediately after a service is rendered. For example, after eating in a shop, you are handed a bill to be settled immediately.
On the other hand, an invoice can be described as a document sent by a supplier to their client, which specifies the content of a transaction. An invoice is usually created based on a tailor-made invoice template. An invoice that is created based on specific requirements is considered legal and must not be altered or changed. Depending on the circumstance, a distortion of an invoice may have legal ramifications.
A seller usually issues an invoice to a buyer for the sale of goods or services on credit. The invoice would specify when the buyer is expected to pay the supplier. For example, you get an invoice for electric maintenance within your home from your local electrician.
Structural Difference Between a Bill and an Invoice
Apart from the difference in definition and function, a bill and invoice are also different structurally regarding input fields. These differences are stated below.
- Invoice Number
- Supplier’s Information
- Client’s Information
- Other Information
- Learn to Create a PDF Invoice
An invoice number is required on all invoices that are issued by a supplier. Any invoice that is devoid of an invoice number can be considered legally invalid. A client is under no obligation to pay an invoice that lacks such a number. This number is usually written at the top of an invoice.
All invoices must contain three dates. These dates are the date of invoice generation, the date of delivery of goods or services, and the due date of the invoices. These dates are critical to the validity of an invoice. The date of invoice generation is usually written at the top of an invoice. The date of delivery of goods or services is usually written against each item. While the due date of an invoice is either written at the bottom of the invoice or against the total amount due.
The information of a supplier is usually written on top of an invoice and the word “invoice”. The company’s names, contact address, and contact information is the main supplier information that is usually written on this document. Having this information on an invoice is crucial as clients are confident; they have received documentation from the right supplier.
The client’s information is usually written within an invoice for the benefit of the client. Doing this is in line with the term of a transaction between the buyer and seller. No client would want to pay an invoice that does not contain their name, as this can become a legal problem in the future.
An invoice would usually have other information written on it, such as the preferred method of payment, tax identification number, and an itemized list (with descriptions) of supplied goods or services. You may even find a message box that allows the supplier to send personal messages to their clients.
A bill is usually devoid of all these features. In most cases, purchased items are highlighted, and a total due amount is written beneath.
So, now you figured out the difference between invoice and bill. It’s time to learn how to create a PDF invoice!
PDF.co Web API creates accurate and structured invoices, converts from HTML to PDF, and provides nice templates for your invoices!
Learn to Create a PDF Invoice
In this detailed guide, you will learn how to make a custom PDF invoice using text and images in our Zapier integration. To complete this task, you will have to sign up for a PDF.co account and a Zapier account.
1. Figure out Your API Key
The initial step is to sign up for a free account with PDF.co and figure out your API key in your dashboard.
2. Initiate Your First Zap
Once the signups are completed, you are ready to proceed to your first task.
The Zap creation button is located in your Zapier dashboard top-right.
Just select PDF.co as the App and PDF Filler as the Action Event. Review the screenshot for details:
3. PDF Filler Necessary Settings
It’s time to configure PDF Filler with your Invoice data. PDF Viewer tool can help you proceed with this task. Just drag the coordinates of the location where you see your text and images in the PDF file.
Here’s the screenshot with all the configurations completed.
The Source PDF field would be empty and you would make the Invoice from a clean slate.
The Text objects field shows the coordinates, font name, color & size, page text & number in the format as follows:
The Images field shows the coordinates, image URL, width, and height, page number in the format as follows:
4. Test & Review Your Zap
After you see that your Zap is successful, your generated PDF invoice can be viewed by the link. Take a look here.