What is An Invoice In Accounting - Definition And Meaning

An invoice is an evidence document that expressed the agreement made between seller and buyer for the goods or services sold or purchased with specified quantity and price mentioned with the date, names of the parties. So, it shows an evidence of a Business Transaction. There are different types of invoice such as Purchase Invoice, Sales Invoice, etc. 

Most of the time, an invoice is made for Credit Purchases and Credit Sales.

Invoice is the first step of accounting cycle which is very important in the Books of Accounts of a business.

Now a days, due to the use of internet, the trends of online buying and selling are increasing and hence electronic invoice is used to keep records of Sales and Purchases made between sellers and buyers.