All Your Accounting FAQs Answered in Simplest Terms

The world of accounting consists of many complexities, jargon, and documents. This page shall act as your ultimate resource for reliable answers to all your accounting-related queries like invoicing, e-invoicing, GST, etc. Feel free to leave a comment below if you have a query that is not listed here.

What is the difference between a tax invoice and a bill of supply?

A Tax Invoice is issued when GST is applicable to the transaction. It includes the tax amount and is used for taxable supplies of goods or services.

A Bill of Supply is issued when the supplier is not allowed to charge GST. It excludes tax and is used for exempted or composition scheme supplies.

What is the difference between a Voucher and an Invoice?

An invoice is an external document issued by a seller to a buyer, requesting payment for goods or services provided. It acts as evidence of the sale and includes transaction details for both parties involved. Whereas, a voucher is an internal document used within an organization to record and approve expenses or liabilities. It serves as a supporting document for payments or journal entries and is crucial for financial control and auditing processes.

While invoices are used for billing and payment purposes between external parties, vouchers are utilized internally to ensure proper documentation and authorization of expenses within the organization.

What is a supplementary invoice?

A Supplementary Invoice, also known as a debit or credit note, is issued to adjust an error or make changes to the original invoice. It reflects additional charges or reductions.

What is the difference between Proforma Invoices and Account Sales?

Proforma Invoice is a preliminary invoice issued before the actual transaction, outlining the terms and conditions of the sale without demanding payment. Account Sales is a document provided by a seller to a buyer after the completion of the sale, showing the items, quantities, and total amount owed.

What is the difference between a Purchase Order and a Non-Purchase Order invoice?

Purchase Order Invoice is raised when a formal purchase order is issued by the buyer before the goods or services are delivered. It references the purchase order number.

Non-Purchase Order Invoice is raised when there is no prior purchase order. It may result from an informal agreement or immediate need for goods or services.

How to add a missing invoice in GSTR1 after filing?

After submitting GSTR 1, no changes or revisions are allowed. Missed invoices must be included in the next GSTR 1 filing.

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