Invoice
An invoice, bill, tab, or bill of costs is a commercial document that includes an itemized list of goods or services furnished by a seller to a buyer relating to a sale transaction, that usually specifies the price and terms of sale., quantities, and agreed-upon prices and terms of sale for products or services the seller had provided the buyer.
Around 5,000 years ago, merchants in Mesopotamia used cuneiform script on clay tablets to document trade transactions, including details such as quantities, prices, and the parties involved.
In ancient Egypt, transactions and tax records were documented on papyrus scrolls, serving as an early method of financial record-keeping.
[3] The invention of paper in China around AD 105 facilitated advancements in documentation, eventually spreading to the Middle East and Europe.
[4] During the Middle Ages, European merchants began using handwritten invoices to detail sales transactions, often recording information such as dates, descriptions of goods, quantities and prices.
The printing press was introduced in the 15th century that enabled the production of standardized invoice forms, contributing to more consistent financial documentation.
Additional financial elements like taxes, shipping charges, and discounts are separately enumerated and added to the subtotal to calculate the grand total amount due.
This structured format serves various functions, including billing, accounting, auditing, and, in cases of disagreement, legal evidence for dispute resolution.
[5][6] Header Body Footer In countries where wire transfer is the preferred method of settling debts, the printed bill will contain the bank account number of the creditor and usually a reference code to be passed along with the transaction identifying the payer.
[7] In Canada, the registration number for GST purposes must be furnished for all supplies over $30 made by a registered supplier in order to claim input tax credits.
After implantation of the Goods and Services Tax (GST) in India, concept of e-invoicing has been introduced for businesses with a turnover of more than Rs 5 crore from 1 August 2023.
To mitigate this, the European Commission has introduced the Late Payment Directive that sets a limit on businesses to settle their invoices within 60 days.
