Business, Legal & Accounting Glossary
An itemized bill for services rendered or products ordered. Also used as a verb to describe the act of billing.
A list of goods sent or services provided, with a statement of the sum due for these; a bill.
An Invoice is a commercial document issued by a Seller to a Buyer, indicating the products, quantities and agreed prices for products or services that the Seller has already provided the Buyer with. An Invoice indicates that, unless paid in advance, payment is due by the Buyer to the Seller, according to the agreed terms.
It identifies both the trading parties and lists, describes, and quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts (if any), and delivery and payment terms.
In certain cases (especially when it is signed by the seller or seller’s agent), an invoice serves as a demand for payment and becomes a document of title when paid in full.
Types of invoice include a commercial invoice, consular invoice, customs invoice, and pro forma invoice.
The Invoice usually contains PO #, Date, Billing Address, Shipping Address, Terms of Payment, List of products with quantities and prices.
Invoices are sometimes called Bills.
If the buyer returns the product, the seller usually issues a Credit Memo for the same or lower amount than the invoice and then refunds the money to the buyer.
Invoices for hourly services work (such as by lawyers and consultants) often pull data from a timesheet.
The warehouse supervisor is responsible for carefully checking the delivery against the invoice before authorizing payment.
If the billing department does not get the invoices mailed out before the end of the month, the customers’ payments cannot be credited against that month’s accounts.
She invoiced the company for her expenses.
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This glossary post was last updated: 22nd March, 2020 | 3 Views.