Invoicing terms used in Global

Billable hours are the hours a professional (consultant, lawyer, designer, contractor) worked that can be charged to a specific client at an agreed hourly rate, distinct from non-b...

A credit note (also called a credit memo) is a document issued by a seller to reduce the amount owed on a previously issued invoice, used to correct overcharges, process returns, o...

A debit note is a document that increases the amount owed on a previously issued invoice, used by sellers to correct under-billing or apply price adjustments, and by buyers to form...

A discount on an invoice is a reduction applied to a specific line item or to the subtotal, expressed as a percentage or a fixed amount, that reduces the buyer's total and (because...

Due on Receipt means payment is expected immediately when the buyer receives the invoice, with no formal grace period, used most often for deposits, small recurring fees, and short...

E-invoicing is the structured, machine-readable exchange of invoice data directly between supplier and buyer systems, typically through formats like PEPPOL, ZUGFeRD, FatturaPA, or ...

An early-payment discount is a small percentage reduction offered to a buyer who pays an invoice before the standard due date, commonly expressed as terms like 2/10 Net 30, which m...

Gross is the total amount including tax; net is the amount before tax. On an invoice, the gross is what the buyer pays in total, while the net is the supplier's earned revenue (wit...

An invoice is a commercial document a seller issues to a buyer to request payment for goods or services delivered, listing the line items, total amount due, a unique sequential inv...

IVA is the local name for value-added tax used across Spanish-speaking countries (Impuesto sobre el Valor Anadido in Spain, Impuesto al Valor Agregado in Mexico and Latin America) ...

A line item is a single row on an invoice representing one good or service, with a description, a quantity, a unit price, and the resulting line total; the sum of every line-item t...

Milestone billing is a billing approach where invoices are issued upon completion of defined project milestones (e.g. design sign-off, beta launch, final delivery), rather than on ...

Net 15 means the buyer must pay the full invoice amount within 15 days of the invoice date, half the runway of the standard Net 30 default and common in freelance and small-busines...

Net 30 means the buyer must pay the full invoice amount within 30 days of the invoice date, with no early-payment discount built into the terms.

Net 60 means the buyer must pay the full invoice amount within 60 days of the invoice date, double the Net 30 default and common in large-corporate procurement, retail supply chain...

Payment terms are the agreed conditions for when and how a buyer will pay an invoice, including the due date (typically expressed as Net X), accepted payment methods, late-payment ...

PEPPOL (Pan-European Public Procurement On-Line) is a network and a set of standards for exchanging structured e-invoices and other business documents between buyers and suppliers ...

A proforma invoice is a non-binding quote presented in invoice format, sent before goods or services are delivered, that previews the price and terms but does not create a tax reco...

A purchase order (PO) is a buyer-issued document that authorises a supplier to provide specific goods or services at agreed prices and terms, and serves as the buyer's internal ref...

A quote (or quotation) is a formal price offer a seller sends to a buyer before any work is agreed, stating the proposed price, scope, and terms; once the buyer accepts, the quote ...

A receipt is a document the seller issues to the buyer after payment has been received, confirming the transaction settled and serving as the buyer's proof of payment for accountin...

A retainer is a recurring fee a client pays a service provider for ongoing access, reserved capacity, or a defined scope of work delivered on a regular cadence, typically billed mo...

In the Philippines, a Sales Invoice is the Bureau of Internal Revenue (BIR) authorised document for sales of goods (or properties), distinct from the Service Invoice used for sales...

A statement of account is a periodic summary the seller sends the buyer that lists every transaction between them during the period (invoices issued, payments received, credit note...

The subtotal on an invoice is the sum of all line items before tax, discounts, fees, or rounding are applied, sitting between the line-item table and the total as the basis for the...

SWIFT/BIC (Business Identifier Code) is an 8 or 11-character code that uniquely identifies a specific bank (and optionally a branch) on the SWIFT network, used alongside an IBAN to...

Time and materials (T&M) is a billing model where the client pays for hours worked at an agreed hourly rate plus the pass-through cost of any materials used, contrasted with fixed-...

Withholding tax is income tax that the buyer deducts from a supplier's invoice before paying and remits directly to the tax authority on the supplier's behalf, used most often for ...