Invoice

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Definition of 'Invoice'

An invoice is a document that lists the goods or services that have been provided, along with the price and terms of payment. It is a formal request for payment from the customer. Invoices are typically sent by businesses to their customers, but they can also be used between individuals or organizations.

There are two main types of invoices: pro forma invoices and commercial invoices. A pro forma invoice is a preliminary invoice that is sent before the goods or services have been provided. It is used to confirm the order and the terms of payment. A commercial invoice is a formal invoice that is sent after the goods or services have been provided. It includes all of the details of the transaction, such as the quantity, price, and terms of payment.

Invoices are an important part of the business world. They help to track transactions and ensure that businesses get paid for the goods or services they provide. Invoices can also be used for tax purposes.

Here are some of the key elements of an invoice:

* The company name and address of the seller
* The company name and address of the buyer
* The date of the invoice
* The invoice number
* A description of the goods or services provided
* The quantity of each item
* The price per item
* The total amount due
* The terms of payment
* The due date

Invoices can be sent in a variety of formats, including paper, email, and electronic data interchange (EDI). The most common format is paper, but electronic invoices are becoming increasingly popular.

Invoices are an important part of the business world. They help to track transactions and ensure that businesses get paid for the goods or services they provide. Invoices can also be used for tax purposes.

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