A document that itemizes the transfer of goods or services between a buyer and seller is known as an invoice. Information appearing on an invoice includes the names of the buyer and seller, price paid, quantities, and date of the transaction.
Since an invoice serves to document the transfer of goods or services from the seller to buyer, it can be used by accountants to record the transaction. Payment terms are usually negotiated between a buyer and seller by procurement or supply chain associates. When the terms include the extension of credit, an invoice normally results in an increase in accounts payable on the balance sheet of the buyer and a corresponding increase to accounts receivable on the seller's books.
The information typically appearing on an invoice includes: