Both invoices and bills are requests for payment and are often used interchangeably.
However, the Deskera Books differentiates these two terms and simplifies them for easier understanding.
Invoices - Selling to your Customers
‘Invoices’ are used when you request your customers to pay for the products and services that you have rendered or sold.
This way, when you send invoices out to your customers, you are providing them with proper documents for their tracking purposes, and you can keep a tab on the money that they owe you.
When invoices are sent, regardless of the fulfillment status of goods or services, journal entries will be recorded automatically.
Bills - Buying from your Suppliers
‘Bills’ will be used when you are expected to pay your suppliers for the products and services that you have purchased.
When you create a bill entry, you are tracking the invoices that your suppliers have sent to you and recording the bills that you need to pay.
When your bills are created, journal entries will be posted automatically.
In the Deskera Books , Invoices and Bills are different to describe money in or money out.