Invoice: definition, example, and why it matters

An invoice lists the work performed or items sold, the amount owed, the due date, and the accepted payment methods. It serves as a legal record of the transaction for both seller and buyer, and is the trigger for accounts-receivable tracking.

Example: After fixing a leaking pipe, a plumber sends invoice #1042 for $325, due in 14 days.

• Short definition. A document a business sends a customer requesting payment for goods or services.
• Category. Invoice is a invoicing term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds invoice into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does invoice mean?

An invoice lists the work performed or items sold, the amount owed, the due date, and the accepted payment methods. It serves as a legal record of the transaction for both seller and buyer, and is the trigger for accounts-receivable tracking.

Can you give a invoice example?

After fixing a leaking pipe, a plumber sends invoice #1042 for $325, due in 14 days.

Related terms

• Estimate — A non-binding written quote of the cost of a job, sent before work begins.
• Receipt — Proof that a customer has paid for goods or services.
• Purchase order (PO) — A formal request from a buyer authorizing a seller to perform work or ship goods.
• Net 30 — Payment terms requiring full payment within 30 days of the invoice date.