Invoice Glossary - Essential Terms & Definitions

A commercial document issued by a seller to a buyer that itemizes and records a transaction between the two parties.

A unique identifier assigned to each invoice for tracking and reference purposes.

Payment is due in full 30 days after the invoice date.

Payment is due in full 60 days after the invoice date.

Payment is expected immediately upon receiving the invoice.

A preliminary bill of sale sent before goods or services are delivered.

A document issued by a seller to reduce or cancel the amount owed by a buyer.

A document issued by a buyer to request a credit or by a seller to increase the amount owed.

An invoice that is automatically generated and sent on a regular schedule.

A customs document used in international trade that describes the transaction details.

A commercial document issued by a buyer to a seller indicating types, quantities, and agreed prices.

Money owed to a business by its customers for goods or services delivered but not yet paid.

Money a business owes to its suppliers or vendors for goods or services received.

A document providing a customer with expected costs before work begins.

A document confirming that payment has been received.

An invoice that has not been paid by its due date.

An individual entry on an invoice listing a specific product or service.

The sum of all line items before taxes, discounts, or other adjustments are applied.

A reduction in the price charged for goods or services.

The final sum that must be paid, including all charges, taxes, and adjustments.

An additional charge imposed when payment is not received by the due date.

An upfront fee paid to secure ongoing services, often for a set period or scope of work.

A partial upfront payment made before goods or services are delivered.

A summary document showing all transactions between a business and customer over a period.

Payment sent by a buyer to a seller, typically with advice detailing which invoices are being paid.

The date when the invoice is issued.

The date by which payment must be received.

Government-imposed charges added to the cost of goods or services.

A consumption tax assessed on the value added at each stage of production or distribution.

The transfer of money from buyer to seller in settlement of an invoice.

The conditions under which a seller expects payment from a buyer.