Accounts receivable invoices are invoices that are prepared and distributed by the accounting department of a business operation. Invoices of this type are made payable to the company that issues them, and are usually issued as documentation of a specific amount of money that is owed by a client in exchange for the receipt of specific goods or services. Accounts receivable invoices vary in format and detail, but usually contain a core group of features that are designed to make it easier for the recipient to relate the documents to specific purchases and to prepare payments.
With most accounts receivable invoices, there are several types of information that are always included. One vital piece of information found on the invoice is the billing address of the client who will receive the document. Typically, that address will include a contact name, either of an individual or a department. Each invoice will also provide the name of the issuer along with an address that can be used to remit the payment. All accounts receivable invoices include the date that the invoice is issued, along with the terms of payment that apply to the balance due.
Other details are also included in the bodies of most accounts receivable invoices. Typically, a brief description of each item or service received by the customer, along with the total number of units received, will be part of the additional detail. It is not unusual for a unit price for each item to be included, along with that is known as the extended price, or the cumulative total due for all the units of a particular item ordered. From there, the invoices will likely include details regarding any discounts that are applied to the order, as well as any taxes that are assessed and payable on the items ordered.
There are other forms of information that may be included on accounts receivable invoices, often as a means of expediting the ability of the recipient to relate the charges to a specific account within their own accounting system. For example, attorney firms routinely request that what is known as a client and matter number be included in the invoice detail, making it easy to relate the charges to work done for a specific client. In like manner, a company may require the vendor to include a cost center number as part of the invoice detail, making it easier to relate the costs to a specific department. Many vendors will comply, since doing so helps clients to quickly qualify and approve the invoice, and make arrangements to remit payments sooner rather than later.
