Definition:
An invoice is a bill sent by a provider of a product or service to the purchaser. The invoice establishes an obligation on the part of the purchaser to pay, creating an account receivable.
The usual sections in an invoice include:
- Date
- Names and addresses of customer and supplier
- Contact names
- Description of items purchased, either products or services
- Terms of payment. For example, the provider might specify "net 30 days," which means that the entire amount is due within 30 days.
Also Known As: Bill
Common Misspellings: Invoices are sometimes confused with purchase orders.
Examples:
Jim's Photography sent Kiki's Restaurant an invoice for the publicity photos taken on January 30.
