Invoice
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is invoice?
An invoice is the seller’s bill for goods or services delivered, listing the items, quantities, prices, freight, tax, payment terms and amount due. It also carries the customer’s PO number; for a distributor, the invoice is created when the order ships and stays in accounts receivable until it is paid.
How it works
Customers check invoices against their own records in a three-way match before paying, so the PO number and the order details need to be right.
Invoice example
Invoice 30112 went out without the customer’s PO number. Forty days later it was still unpaid, set aside by the customer’s accounts payable team until the CSR resent it with PO 77310 added.
Related terms
- Purchase order (PO)A purchase order (PO) is a buyer’s document ordering specific items, in specific quantities and at stated prices, from a supplier.
- Three-way matchThree-way match is an accounts payable check that compares a supplier’s invoice with the purchase order and receiving record before the invoice is paid.
- Accounts receivable (AR)Accounts receivable (AR) is the money customers owe a company for goods already delivered and invoiced but not yet paid for.
- Credit memoA credit memo is a document that reduces what a customer owes, issued to correct an invoice or to credit a return, a pricing error or a short shipment.
- Net termsNet terms are payment terms that give a business customer a set number of days after the invoice date to pay the full amount, such as net 30 or net 60.
