Glossary

Browse invoicing terms and jump to definitions. If you want a practical workflow, start with the Invoicing Guide.

Terms

• Invoice

  A bill that requests payment for goods or services provided.

• Quote

  A price estimate sent before work begins.

• Purchase order (PO)

  A buyer’s document confirming what they intend to purchase.

• Credit note

  A document that reduces or corrects a previous invoice.

• Line item

  A single row describing one product or service being billed.

• Subtotal

  The sum of line item amounts before tax, shipping, and discounts.

• Discount

  A reduction applied to the invoice total.

• Tax

  A percentage or fixed amount added based on local tax rules.

• VAT

  Value Added Tax — a consumption tax used in many countries.

• Sales tax

  A tax typically collected at the point of sale in some regions.

• Net amount

  The price before tax is added.

• Gross amount

  The total price including tax.

• Payment terms

  When and how the invoice should be paid (e.g., Net 30).

• Due date

  The date by which payment is expected.