An invoice is a commercial document issued by a seller to a buyer that itemizes and records a transaction involving goods or services provided. It details the products or services furnished, their quantities, prices, and the total amount owed, along with payment terms such as due dates and any discounts or late fees
. Invoices serve as a formal request for payment and act as proof of the transaction. From the seller's perspective, it is called a sales invoice, while from the buyer's perspective, it is a purchase invoice. The document typically includes:
- Identification as an invoice with a unique invoice number
- Seller and buyer contact information
- Description of goods or services
- Quantity and unit price
- Total cost including taxes and additional charges like shipping
- Payment terms specifying when and how payment should be made
Invoices are essential for accounting, tracking sales, managing cash flow, and legal documentation. They help businesses ensure payments are received and provide buyers with proof of purchase, which can be important for warranties or disputes
. In summary, an invoice is a detailed bill sent after goods or services are delivered, requesting payment and documenting the transaction between buyer and seller
