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Bookkeeping › Books of Prime Entry

What is an invoice and what key details does it contain?

Beginner

Answer

An invoice is a source document issued by a seller requesting payment for goods/services supplied on credit. Key details: unique invoice number, date, seller and buyer names/addresses, tax registration numbers, description and quantity of goods, unit price, net amount, VAT rate and amount, total payable, and payment terms.
Real-world example The seller's invoice number and VAT breakdown let the bookkeeper record the sale accurately in the day book.

Common follow-ups: Why must invoices be uniquely numbered? | What determines which day book it enters?