What is an invoice

An invoice is a detailed statement that itemises a transaction between a seller and buyer, serving not only as proof of sale but also as a formal demand for payment for the goods or services provided.

Beyond a simple Word document, a legally valid invoice must comprise specific details:

  • Issue date
  • A sequential invoice number pre-assigned by a system
  • Seller’s legal business name and business number
  • Buyer’s full details, including name and address
  • Detailed description of products or services supplied
  • Quantity or extent of the products or services provided
  • Time and place of supply
  • Total payment due,
  • Payment deadline

Thankfully, contemporary invoicing applications like Conta automate these aspects, ensuring you fulfill all the requisite criteria by simply inputting the necessary data.

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Different types of invoices

Most business invoices are credit invoices, meaning payment follows the delivery of goods or services. Conversely, instant payment transactions require a cash invoice, which adheres to the same information requirements.

Upon discovering discrepancies or needing to issue a refund, a “credit invoice” must be generated to negate or alter the original invoice.

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