Line item: definition, example, and why it matters
Line items let customers see exactly what they're paying for. Best practice: separate parts from labor, list quantities, and tag taxable lines individually because most US states tax parts but exempt labor.
Short definition. An individual charge on an invoice — one part, service, or fee per row.
Category. Line item is a invoicing term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds line item into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does line item mean?
Line items let customers see exactly what they're paying for. Best practice: separate parts from labor, list quantities, and tag taxable lines individually because most US states tax parts but exempt labor.
Related terms
Invoice — A document a business sends a customer requesting payment for goods or services.
Sales tax — A tax on the sale of goods (and sometimes services) collected from the customer at checkout.
Markup — The percentage added to your cost to determine the customer-facing sell price.
