Invoice
An invoice is the formal, numbered request for payment that accounting, payables, and audits run on.
What an invoice is
An invoice is the formal request for payment: seller and buyer details, line items with prices, taxes, totals, payment terms, and a due date, numbered for the record.
In B2C the receipt usually plays its role; in B2B and VAT regimes the invoice is a legal document with required fields.
Why invoices matter
They’re the paper trail money moves on: accounting books from them, buyers’ accounts-payable pays against them, tax authorities audit through them. In wholesale, the invoice matched against PO and receiving is what releases payment.
What a proper invoice carries
- Unique sequential number and issue date
- Both parties’ legal details, tax IDs where required
- Line items, quantities, prices, tax per line or rate
- Terms: due date, early-payment discounts, payment methods
Frequently asked questions
Invoice vs receipt: what’s the difference?
An invoice asks for payment; a receipt confirms it happened. Ecommerce orders paid at checkout typically generate a receipt-style confirmation, with formal invoices on request or for business buyers.
What are e-invoicing mandates?
A growing set of countries require structured electronic invoices through government platforms, especially B2B. Sellers entering those markets inherit the format; the commerce stack needs to produce it.