An invoice is a time-stamped commercial document that itemizes and records a transaction between a buyer and a seller. If goods or services were purchased on credit, the invoice usually specifies the terms of the deal and provides information on the available methods of payment.
Types of invoices may include a paper receipt, a bill of sale, debit note, sales invoice, or online electronic record.
Payment terms may be outlined on the invoice, as well as the information relating to any discounts. It also presents the unit cost of an item, total units purchased, freight, handling, shipping, and associated tax charges, and it outlines the total amount owed.