what is invoice

An invoice is a document that maintains a record of a transaction between a buyer and seller, indicating the products, quantities, and agreed-upon prices for products or services the seller had provided the buyer. It is a time-stamped commercial document that itemizes and records a transaction between a buyer and a seller. An invoice is generally used to document products or services sold and delivered to a customer, so it is a bill. It is a legally binding agreement showing both parties consent to the quoted price and payment conditions. An invoice is used to demand payments and serves as a paper trail for accounting purposes. It is an invaluable tool for accounting, helping both the seller and the buyer to keep track of their payments and amounts owed. An invoice can also serve as a legal record, making it possible to find out when a good was sold, who bought it, and who sold it. The document indicates the buyer and seller, but the term invoice indicates money is owed or owing.