Issued by
Seller
Received by
Buyer
How long to keep it
3 years after you file the tax return it supports, in most cases
IRS: How long should I keep records? (opens in a new tab)When it's used
- Payment processing
- Accounts receivable
- Tax documentation
Legal significance
An invoice is the seller's record of the sale and the buyer's record of the expense. Both keep it with the records that support their tax returns.
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 |
Blank template
Blank Invoice template
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.