What is an incoming invoice
An incoming invoice is an invoice a company receives from a supplier for goods or services the company has purchased on credit. The company is obligated to pay all incoming invoices.
The exception is if there are errors or disagreements about the agreement, such as cancellation or late delivery. The paid invoice is documentation of what the supplier is owed and the buyer’s payment obligation.
Defining incoming invoice
An incoming invoice is essentially a document that a company obtains from a supplier, indicating the amount owed for purchased goods or services.
The company is obligated to settle these invoices, except in cases of errors, disputes, or issues related to the agreement, such as cancellations or late deliveries. The paid invoice serves as official documentation of the supplier’s claim and the buyer’s payment responsibility.
Distinguishing between invoices and incoming invoices
While the term “invoice” is commonly used, it can encompass both incoming and outgoing invoices. The distinction lies in the direction of the transaction. An incoming invoice is received by the company, reflecting purchases made on credit, whereas an outgoing invoice is generated and sent by the company to bill its customers.