View random article

What Is an Invoice?

In business, an invoice is usually talked about. An invoice is a detailed bill that is given by vendors and suppliers for the goods and services that it provides a company. Usually, an invoice will list the amount of quantity of the items a supplier has delivered. It will also include the price, the billable hours for a service, the description of a service and the contact address that is needed for payments. There are some companies who pay the expenses from a general fund or petty cash account, which is usually for smaller amounts. But in general, an invoice is paid through the company’s accounts payable department on the posted due date.

An invoice is considered a legal document that can be turned into a piece of evidence if either of the party involved incurs debt. The company who receives either goods or services has the right to question the legitimacy of the individual items in the invoice, but the invoice will still remain a debt.

But not all invoices are considered bills of sale. A goods manufacturer, for instance, may decide to send a shipping invoice that shows the parts and accessories that are included in an order. The recipient of the shipment will then compare what is delivered to the shipping invoice.

Using an invoice to prove a debt is sometimes misused by certain people. There are companies who may generate fake invoices in order to account for any funds or goods that are missing or to pad the sales numbers of certain products or services.

Featured in Finance