Invoices

An invoice is a commercial document issued by a seller to a buyer that itemizes a transaction and requests payment. It typically includes the issue date, due date, a unique invoice number, seller and buyer contact details, a description of goods or services, quantities, unit prices, any discounts, subtotals, applicable taxes, the total amount due, the currency, and payment terms plus accepted methods. Invoices serve as a formal record for billing, revenue recognition, and tax reporting, and they support accounts receivable management and financial reconciliation.

There are several common types of invoices, including standard invoices for single transactions, pro forma invoices that outline a proposed charge, recurring invoices for subscriptions or ongoing services, and accompanying credit or debit memos used to adjust balances. Tax considerations vary by jurisdiction; tax invoices may require tax identifiers, tax bases, rates, and amounts, and some regions mandate electronic invoicing to improve reporting and compliance.

Electronic invoicing (e-invoicing) is widely adopted and enables automated dispatch, delivery confirmation, and seamless integration with accounting systems. Payment terms specify when the invoice is due and may include late-fee provisions. Invoices may be settled via various methods such as bank transfer, card payments, or digital wallets, and receipts are issued upon payment.

Best practices emphasize clear itemization, consistent numbering, accurate terms, data accuracy, and timely delivery to support cash flow and audit readiness. Invoices are distinct from receipts: an invoice requests payment, while a receipt proves that payment has been made.