Accounting terms

Dictionary of all accounting terms

What is an Invoice?

An invoice is a payment request sent by the supplier that lists the goods or services provided to the buyer.

An invoice is a legally-binding document (assuming both sides have agreed to the payment and other terms) that a supplier sends to the buyer after the goods or services have been provided.

In different parts of the world, an invoice is also known as a 'bill.'

The standard sales invoice must clearly state on the document that it is an invoice. It should also have a unique invoice number as well as the date of invoice. The seller's contact information is usually included on the invoice, as well the invoice recipient; i.e., the buyer.

The invoice normally lists the goods or services supplied to the customer and must include the total amount and any necessary taxes.

There are many different types of invoices, such as the proforma, commercial, progress invoicing, timesheet invoice, recurring invoice and more.

For a full guide on what an invoice is and how to use invoice templates, visit our blog post, "What Is an Invoice and How Can I Make One?"

For a full list of the different types of invoices, visit our blog post, "Proforma Invoice and Other Types of Invoices."

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