Invoicing
Invoice
A document a business sends a customer requesting payment for goods or services.
Definition
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.
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.