Understanding invoices, payments and statements

An invoice describes goods or services supplied, quantities, prices, taxes or discounts, currency, due date and the total owed. Check the invoice number and line items before paying. A payment record confirms money received or sent and should reference the related invoice when possible. A credit or cashback is different from a payment: it reduces the amount owed or adds value to the account according to its stated purpose. A transaction statement lists financial movements over a period. Income and outgoing columns describe direction from the account holder’s point of view, while the running balance shows the result after each movement. Read the transaction type and invoice-item description, not only the amount. Never add different currencies into one total without conversion information. USD, IQD and other currencies should each have separate totals and balances. Keep receipts and compare invoice, payment and statement references when reconciling records.