What is a Bill of Sale – Contents, Types, and Difference From Invoice

When you purchase goods from a store, the seller is given a written acknowledgment of the goods purchased- this is called the bill of sale. Typically, it contains the date of purchase, location, the amount of goods purchased, total payable amount, description of goods, and the name of the purchaser. Sometimes when you need to replace any particular item, you need to show the bill to the seller as it proves that the item was bought from his store. They help in minimizing frauds and malpractices. Instead of printing forms, one can download free bill of sale forms and after customizing it as per requirements, use it for daily dealings.

Types –

1. Absolute- It means that the transfer of tangible or non-tangible goods is complete, no payments are due. With complete payment, the transaction closes. It is “conditional for the sale” of movable and non- movable goods.

2. Conditional- Mainly used in property matters, the seller demands collateral from the purchaser till the time complete payment is done. Non payment of overdue amount gives power to the seller to claim full ownership over the collateral.

Difference From Invoice-

Invoice forms and bill of sale forms have a little difference. Bills are used for everyday cash transactions between seller and purchaser. There is no debt or credit factor. Whereas an invoice acknowledges the purchase of goods but the payment is not done immediately but after some time. Invoices are basically used by companies, small businesses, wholesalers, and others. Also, an invoice contains more detailed information about the purchased items as compared to a simple bill. One can get free invoice forms from the internet for business uses.

If there are any fraudulent practices involved, the bill of sale can function as a legal financial instrument and act as a proof to settle claims. Therefore, it is necessary to preserve these documents for future benefits.

Source by Pinky Savika

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