invoicing

Invoicing is the process by which a seller requests payment from a buyer for goods delivered or services performed. An invoice serves as a financial record, a request for payment, and a basis for tax reporting and accounts receivable management. Invoices can be issued on paper or electronically.

A typical invoice lists: seller and buyer names and contact details; an invoice date and number; a description of goods or services; quantities, unit prices, and any discounts; applicable taxes; subtotals and the total amount due; payment terms and instructions; and the due date. It may also include payment methods, bank details, and billing currency.

Common invoice types include standard sales invoices, credit notes (to document refunds or price adjustments), debit notes (to request additional charges), pro forma invoices (preliminary bills), and recurring invoices for ongoing services.

The invoicing process often follows a purchase order and delivery, and typically requires three-way matching (order, receipt, and invoice) before payment. Accounts receivable teams manage aging, apply payments, and reconcile invoices with financial records. Timely invoicing supports cash flow, while clear terms help reduce disputes and delays.

Tax and regulatory considerations vary by jurisdiction. Many countries require accurate tax calculations (such as VAT or GST) and specify record-retention periods. Increasingly, governments promote electronic invoicing and standardized formats to improve efficiency, reduce fraud, and facilitate cross-border trade.