What do invoice mean

All rights reserved. Filters 0. Words form: invoiced invoices invoicing. See word origin. The definition of an invoice is a detailed list of products or services showing the money owed for each item.

Invoice is defined as to make or send a list of goods or services for which money is owed. A detailed list of goods shipped or services rendered, with an account of all costs; an itemized bill. Different parties may choose to differentiate bills from invoices in several ways. Common differentiations include:. Bill is a preferred term based on industry - Accountants and lawyers commonly use the term "billable hours" to refer to the time spent on work for a client that they can be charged for.

Because of this, they may use the term "billing a client" in place of "invoicing a client". In these circumstances, though, they mean the same thing. Bills are a subset of invoices - In some cases, the "bill" is considered the list of goods and services being purchased and the total amount to be paid.

Invoices differ from this in that they contain specific additional information as detailed above. Bills are what the recipient calls an invoice - In other cases, "bill" and "invoice" refer to the exact same document, however the issuer will refer to it as an "invoice" and the recipient will refer to it as a "bill".

Bills are a collection of invoice amounts due - Another case is when a business issues a customer multiple invoices over a period. They may follow up with a "bill" which details the total amount outstanding to be paid.

Invoices are sent from the seller to the buyer to request payment, whereas commonly PO or PO's are sent from the buyer to the seller to officially confirm an order. In the order of the sale, purchase orders are sent first as a record of what the buyer is requesting, with invoices being sent typically after goods or services are delivered, requesting payment for what's been provided. The type of information included in a PO is very similar to what's included in an invoice see below.

The words 'Purchase order' marked clearly at the top of the document. The name, address, and contact details of the individual or company issuing the PO. GoCardless is used by over 60, businesses around the world. Learn more about how you can improve payment processing at your business today.

Learn more Sign Up. The payments transformation allows for instant transactions. See the full definition for invoice in the English Language Learners Dictionary. Nglish: Translation of invoice for Spanish Speakers. Britannica English: Translation of invoice for Arabic Speakers. Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free! Log in Sign Up. Save Word. Definition of invoice Entry 1 of 2. Definition of invoice Entry 2 of 2. Synonyms for invoice Synonyms: Noun account , bill , check , statement , tab Visit the Thesaurus for More.

Examples of invoice in a Sentence Noun Payment is due within 30 days after receipt of the invoice. This amount is then deducted from the customer's final payment on delivery or completion of work. Recurring invoices are created and sent to customers at regular intervals, for repeating transactions like subscription fees. A good, legally-sound invoice should contain all the information the customer will need to make payments and provide an avenue to address any questions.

Let's take a peek at the various elements of an invoice:. The word "Invoice" and the company logo must be prominent on the document so that they can be identified easily.

Every invoice must have a unique identifier like an invoice number, purchase order number, or reference number to distinguish it from the rest of the seller's invoices. The invoice should clearly show the seller's name and contact information to ensure the customer can contact you for any queries.

All the company's terms and conditions, including due dates and penalties for non-payment or partial payments, must be clearly included in the invoice. Here are some tips to help you make the best use of your invoices and ensure that you get paid promptly:. Want to learn more about how to get a customer to pay an invoice on time? Forbes has some guidelines for you. Modern invoicing software products from SaaS companies enable you to automate, speed up, and manage the invoicing process so that you get paid on time.

Enjoy complete freedom over the look and feel of your invoices. Choose a premade template from a gallery and tailor it so you can build your brand the way you want. Sit back and let your software take care of your invoices by automating tedious recurring tasks from invoicing workflows to payment reminders.

You can even automatically collect payments on a recurring basis. Invoicing software helps your customer relationships reach a new level. Good invoicing software includes CRM support and a client portal for customers to track their transactions or make payments online. Invoice software helps to streamline your accounting and financial processes by automating important tasks.

By doing so, you can:. A good invoice isn't just a sales receipt, but a legal document that protects your business against errors and risks. The right invoicing tools can help you streamline your invoicing process, improve your cash flow, and even simplify your accounting. A mobile-friendly SaaS invoicing system is an easy modern upgrade for any business that's stuck in the stone invoicing age.