What is an invoice?

What does an invoice include?

An invoice number is a unique reference that identifies one invoice; many countries require it. Payment terms are the agreed deadline for paying it. The full checklist goes further, but these seven parts make a complete invoice:

• Invoice number and date
• The seller's name and address
• The client's name and address
• A line for each item or service, with quantity and rate
• The total, with tax and discounts on their own lines
• Payment terms, such as Net 14
• How to pay: bank account, payment link or cheque payee

Who gives an invoice, and who receives it?

The seller, such as a freelancer or supplier, gives it. The buyer, the client, receives it and pays. Buyers often call it a bill; see invoice vs bill.

What is the difference between an invoice and a receipt?

An invoice asks for money that is owed. A receipt confirms money that was received. You send the invoice first and the receipt after payment arrives; see invoice vs receipt.

When do you send an invoice?

Usually when the work is done or the goods ship; a deposit invoice can come earlier. Terms usually run from the invoice date, so a late invoice means late payment. To make one, see how to make an invoice.

What does a simple invoice look like?

Invoice 1042, dated 3 March. Logo design, 10 hours at 50 each, total 500 (USD). Terms: Net 14, so due 17 March. Pay by bank transfer. Other types include the proforma invoice and the credit note.

Questions

What does invoicing mean?

Invoicing means sending invoices to clients and keeping track of who has paid.

Is an invoice a legal document?

It is a business record and often evidence of a sale. What it must contain, and how long to keep it, depends on your country, so check the local rule.