What is Invoice?
Invoice is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
An invoice is a document a seller sends a customer requesting payment for goods or services, listing line items, amounts, taxes, terms, and due date. Invoices formalize what is owed and start the collections clock for accounts receivable.
Key takeaways
- A formal request for payment with itemized amounts.
- States terms, taxes, and a due date.
- Starts the receivables and collections process.
Why it matters
Accurate, timely invoicing is the bridge from a signed deal to collected cash. Errors and delays here directly slow revenue and inflate DSO.
How Ardovo handles it
Ardovo generates invoices from accepted quotes so line items and pricing carry through without re-keying, keeping billing tied to the deal that created it.
Frequently asked questions
What is the difference between an invoice and a quote?
A quote proposes pricing before a deal; an invoice requests payment after the customer has agreed and the obligation exists.
What are common invoice payment terms?
Net 30 is common, meaning payment is due 30 days after the invoice date. Terms range from due-on-receipt to net 60 or more.