Invoice

An invoice is a document issued by a seller to the purchaser, describing what has been done or purchased, in what quantities and at what prices. The invoice will also include the agreed payment terms, which will trigger the payment process. Some organisations undertake a two-way match before paying invoices, reconciling the invoice with a purchase order, while a three-way match involves the purchase order, invoice and a receipt note. As invoice payment processes are part of acquisition costs, there has been a focus on minimising the transaction costs of raising orders and paying invoices, especially for low-value transactions where the cost of the transaction can be more than the value of the invoice. e-Commerce, procurement cards and recipient-created tax invoices are all mechanisms to streamline the payment process. See also Cost, Acquisition; Invoice, Recipient Generated; Three Way Match and Two Way Match.