Invoice

An invoice is a document used in commerce, particularly in retail. It is made by a person or company who is selling something to a customer (or "buyer"). The invoice is given to the customer as a request for payment. It lists the goods or service provided to the customer, along with the price being charged for each of them.

Once the customer has paid for the goods or services, they may be given a receipt. The receipt is the customer's proof that they have paid for the products. A receipt is not the same thing as an invoice.

From the seller's point of view, an invoice is called the sales invoice. From the buyer's point of view, an invoice is called the purchase invoice.

Business owners, freelancers, accountants, even seasoned managers mix them up. And honestly, it makes sense. They look similar. They talk about money. They usually show up around the same time. But here’s the thing: the invoice and receipt difference is not just semantic — it’s legal, financial, and sometimes emotional (especially when taxes are involved).

Components
 The word invoice
 Unique reference number
 Invoice date
 Credit terms
 Tax payments
 Name and contact detail of the seller and buyer
 Tax or company registration details of seller
 Date of transaction
 Purchase order number
 Description of products
 Unit prices of products
 Total amount charged
 Payment terms

Types
 Collective invoice
 Continuation invoice
 Commercial invoice
 Credit memo invoice
 Debit memo invoice
 Electronic invoice
 Evaluated receipt settlement invoice
 Pro forma invoice
 Progress billing invoice
 Self-billing invoice
 Statement invoice
 Timesheet invoice

Electronic invoices
 EDIFACT
 Open Application Group Integration Specification
 UBL
 ISDOC

References

Category:Accounting
Category:Documents