An invoice is a document submitted to a customer, identifying a transaction for which the customer owes payment to the issuer. This document represents an asset of the issuer and a liability of the customer. An invoice typically identifies the following information:

  • The invoice number
  • The name and address of the seller
  • The name and address of the buyer
  • The date of shipment or when services were delivered
  • A description of the items purchased
  • The quantities and total costs of the items purchased
  • Any sales taxes owed
  • The grand total owed
  • Payment terms

An invoice may be transmitted electronically or as a paper document.