Ans:
There are two methods to record sales and purchase entries. One is an invoice type and the other is a voucher type.
Invoice Type- In such type of recording the sales and purchase transaction have an item-wise breakdown. This method is generally used by traders and manufacturers so that they can record transactions, especially those that have multiple GST rates.
Voucher Type- In this the sales and purchases transactions are recorded as vouchers and no item-wise breakdown is done. This method is generally used by traders and service-based businesses who don't maintain stock and do not require an item-wise breakdown.