Invoices, Trade Discounts and Cash Discounts

In business, merchandise is bought and sold many times as it passes from the manufacturer through wholesalers and retailers to the final consumer. A bill of sale, or an invoice, is a business document used to keep track of these sales and purchases. From the seller’s point of view, they are sales invoices; from the buyer’s point of view, they are purchase invoices or purchase orders. Invoices are a comprehensive record of a sales transaction. They show what merchandise or services have been sold, to whom, in what quantities, at what price, and under what conditions and terms. They vary in style and format from company to company, but most contain essentially the same information. Invoices are used extensively in business, and it is important to be able to read and understand them. In this presentation, you learn how businesses use invoices and the math applications that relate to them.