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An invoice is a seller-issued request for payment for goods or services supplied to a customer. It records what was provided, the amount due, applicable tax, payment terms, and the date by which payment should be made. Unlike a receipt, an invoice normally shows money that is still owed rather than confirming money already received.
Issue an invoice when a sale has been completed, work has reached an agreed billing milestone, or goods have been delivered and the customer must now pay. Use a quotation before the customer accepts the price, a proforma invoice when they need a preliminary statement before the sale is finalised, and a receipt after payment arrives. If the buyer formally authorises the purchase first, their purchase order may be referenced on your invoice.
A freelance designer can invoice a client after delivering an approved brand package, listing the agreed services and a 30-day payment deadline. A wholesaler can invoice a retailer after dispatching an order, showing product quantities, shipping, tax, the buyer's purchase-order number, and bank details for settlement.
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