A document in which one party makes a demand for the payment of money to another party to whom the invoice is addressed or issued. An invoice typically sets forth in detail the basis of the charges contained therein and when payment is expected. For example, a commercial invoice covering the sale of goods sets forth the description and quantity of goods, the unit price and price extensions, sales tax (if any), delivery terms, payment terms, the reference numbers of each party, and various other information needed by the parties. This term is also commonly used as a verb, meaning to issue an invoice.
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