Invoice

An invoice is a commercial document that itemizes goods or services supplied and states the amount owed and payment terms. It records a seller’s request for payment.

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Accounts receivable: Money customers owe a business for goods or services already supplied. An issued invoice commonly records a new receivable on the seller’s books.
Electronic invoicing: The creation and exchange of invoice data in structured digital form. It automates invoice delivery and processing without relying on paper documents.
Pro forma invoice: A preliminary invoice stating expected charges before a sale is finalized or goods are shipped. It estimates the transaction but generally does not request payment as a final bill.
Receipt: A document acknowledging that payment has been received. Unlike an invoice, it records payment rather than requesting it.
Payment terms: Conditions specifying when and how a buyer must pay for goods or services. These terms set the invoice’s due date, discounts, and consequences of late payment.
Three-way match: A control that compares a purchase order, goods receipt, and supplier invoice before payment. The comparison catches mismatches before an invoice is approved.
Commercial invoice: A document describing an international shipment’s goods, value, and parties for customs purposes. Cross-border shipments use it to support customs declarations and assess duties.
Statement of account: A summary of transactions and balances between a business and a customer over a period. It consolidates invoices and payments instead of billing for one supply.
Purchase order: A buyer’s formal document authorizing a purchase from a supplier. Its agreed quantities and prices can be checked against the supplier’s invoice.
Invoice approval: A review process that verifies an invoice and authorizes it for payment. Approval establishes that the billed goods or services and charges are acceptable.