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Transaction Documents
Invoice
Also known as: Commercial Invoice, Sales Invoice, Bill
An invoice is a commercial document issued by a seller to a buyer, detailing the products or services provided and the amount due for payment.
Issued By
Seller
Received By
Buyer
Retention
7 years for tax purposes
When It's Required
- Payment processing
- Accounts receivable
- Tax documentation
Legal Significance
Invoices serve as legal proof of a transaction and are required for tax reporting. They must include seller tax ID for certain transaction amounts.
What Goes On It
| Field | Description | Required |
|---|---|---|
| Invoice Number | Unique identifier for trackingExample: INV-2024-00456 | Yes |
| Invoice Date | Date the invoice was issued | Yes |
| Due Date | Payment due date based on terms | Yes |
| Seller Information | Company name, address, tax ID | Yes |
| Bill To | Customer billing address | Yes |
| Ship To | Delivery address if different from billing | No |
| PO Reference | Customer PO number for cross-reference | No |
| Line Items | Products/services with quantities and prices | Yes |
| Subtotal | Sum before tax | Yes |
| Tax | Sales tax if applicable | No |
| Shipping | Freight charges | No |
| Total Due | Final amount owed | Yes |
| Payment Instructions | How to remit payment | Yes |
Templates
Related Documents
Purchase Order (PO)
A Purchase Order (PO) is a commercial document issued by a buyer to a seller, specifying the types, quantities, and agreed prices for products.
Proof of Delivery (POD)
Proof of Delivery (POD) is a document signed by the receiver confirming that goods were delivered. It protects all parties in a transaction.