What Are the Parts of an Invoice?

You encounter invoices every day, both in business and in your personal life. In your personal life, invoices are more commonly called bills. It is important to know the typical parts of an invoice so you know what you are looking at when you receive one.

  1. Definition

    • An invoice is a bill for goods or services that provides a detailed account of what was purchased and the price of each item.

    Header

    • The date, invoice number and vendor letterhead are usually at the top of each invoice. The header can contain your name and billing address as well.

    Body

    • The body of the invoice contains the itemized record of products or services purchased. It lists the following: a product number, if there is one; a product description; the quantity and price of each item; and the extended price (the quantity multiplied by the price).

    Footer

    • The subtotal, tax and other surcharges, and the grand total of the invoice are at the bottom of the invoice. Many times the footer also will include a phone number, email address or website of the company in case you have questions about your invoice.

    Examples

    • Although invoice templates vary, the basic information is the same. See Resources section to view or download templates.

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