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What is an Invoice?

Definition: An invoice is a document issued by a seller to the buyer that indicates the quantities and costs of the products or services provider by the seller.

An invoice specifies what a buyer must pay the seller according to the seller’s payment terms. Payment terms indicate the maximum amount of time that a buyer has to pay for the goods and/or services that they have purchased from the seller.

An invoice indicates that a buyer owes money to a seller. Therefore, from a seller’s point of view, an invoice for the sale of goods and/or service is called a sales invoice. From a buyer’s point of view, an invoice for the cost of goods and/or services rendered is called a purchase invoice.

An invoice has historically been a paper document mailed to the buyer, but these days sellers can request payments online with electronic invoices.

What is included on an invoice?

Typically, an invoice document will contain a combination of the following details:
 

  • The word ‘Invoice’
  • A unique invoice number for both the seller’s and the buyer’s reference
  • The name and contact details of the buyer
  • The name and contact details of the seller
  • The date the product was sent/delivered, or the date the service was rendered
  • The date the invoice was sent
  • The payment terms (detailing the method of payment, when the payment should be received, details about late payment charges, early payment discounts, etc.)
  • A description of the product/service
  • The price per unit of the products (if applicable)
  • The total amount charged

Invoices in Reviso

See our help video on YouTube about how to create your first invoice in Reviso.

 

Try reviso for free for 14 days

Reviso is a cloud accounting platform providing efficient online collaboration between small businesses and accountants.

Choose between two different trials, both containing all the core features of our accounting system. One of the trials is without data and can be upgraded to a subscription within the 14 days period.