What is the primary purpose of the sales invoice?

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The primary purpose of the sales invoice is to bill the customer for goods or services provided. When a sale is made, the sales invoice serves as a formal document that outlines the transaction details, including the items sold, their prices, and the total amount due. This not only serves as a request for payment but also provides clarity and documentation for both the seller and purchaser regarding the transaction.

The sales invoice is essential for maintaining accurate financial records and accounts receivable, ensuring that the company can track outstanding payments and manage its cash flow effectively. While it may also serve other purposes, such as confirming shipment or assisting with payment processing, its fundamental role is to notify the customer of the amount owed and to facilitate the collection of payment.

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