What Is an Invoice?

An invoice is a document that a seller sends to a buyer to request payment for goods or services that have been provided. It's essentially an itemized bill that records a transaction and states how much is owed and when.

What an invoice typically includes:

• A unique invoice number (for tracking and records)
• The seller's and buyer's names and contact details
• The date the invoice was issued
• A description of the goods or services provided, with quantities and prices
• The subtotal, any taxes, and the total amount due
• Payment terms — the due date and accepted payment methods (e.g., "Net 30" means payment is due within 30 days)

What an invoice is for:

• Requesting payment and telling the buyer exactly what they owe
• Record-keeping and accounting for both parties
• Tax and legal documentation of the sale

Invoice vs. receipt: These are often confused. An invoice is a request for payment sent before payment is made. A receipt is proof of payment given after the buyer has paid.

Invoice vs. bill: They're essentially the same thing from different perspectives — the seller issues an "invoice," and the buyer often calls that same document a "bill" they need to pay.

In short: an invoice is the itemized payment request that documents a sale and tells the buyer how much to pay and by when.