What is an Invoice? #
An invoice is a commercial document that is issued by a seller to a buyer, outlining the goods or services provided and the total amount due for payment. It typically includes details such as the date of the invoice, the invoice number, the names and addresses of the buyer and seller, a description of the goods or services provided, the unit price, and the total amount due.
An invoice is used as a record of the transaction between the buyer and the seller, and it serves as a request for payment. It is also used to track the payment status of the buyer, and to ensure that payment is received in a timely manner.
In accounting, an invoice is a source document that is used to record a sale or purchase transaction in the books of accounts. The invoice amount will be recorded in the accounts receivable or accounts payable depending on the transaction, and it will also be recorded in the general ledger as a debit or credit entry.
Invoices can be issued in different formats, such as paper, electronic or online. Electronic invoicing, also known as e-invoicing, is becoming more prevalent as it allows for faster and more efficient processing of invoices and payments. Some countries have mandatory e-invoicing systems in place.
It’s important for businesses to keep accurate and organized records of all invoices, both issued and received, as they are key financial documents that are used for tax compliance and financial reporting.
Etail Support generates your invoices and keeps a record of them in digital format.