What is an invoice?

An invoice is a document that itemizes and records a transaction between a buyer and a seller. It details the goods or services provided, including quantities and prices, and typically includes payment terms, an invoice number, and the date of the transaction. The purpose of an invoice is to request payment for the products or services rendered, making it essential in the financial management and accounting processes of a business. This clarity and itemization help both the buyer and the seller keep track of transactions and outstanding payments. Other types of documents mentioned, such as receipts and documents summarizing sales or relating to employee salaries, serve different purposes in a business transaction and financial recording.