A supplier ships a carton of goods to a store and later sends a document listing the items, quantities, prices, and payment terms. That document is an invoice. It is the formal request for payment.

Invoices support accounting, tax compliance, and dispute resolution. Retailers match them against purchase orders and receiving records before authorizing payment. Digital invoicing has largely replaced paper in larger operations, speeding the process and reducing errors. Payment terms such as net-30 define when the money is due.

Accurate and timely invoices keep the supply relationship healthy. Delayed or incorrect invoices create friction and can interrupt the flow of goods. For the retailer the invoice is both a liability to be managed and a record of the cost of merchandise.

• Document requesting payment for supplied goods
• Details items, prices, and payment terms
• Matched against orders and receipts
• Essential for accounting and supplier relations