Invoice glossary

Understand the terms behind a clear, professional invoice.

Find plain-language definitions, worked examples and the practical InvoiceCraftly tool that helps with the next step. We publish terms when they genuinely help someone create, check, send or understand an invoice.

Documents

Choose the document that matches the stage of the work: propose, estimate, request payment, confirm payment or correct an earlier invoice.

InvoiceRequest payment for supplied work, goods or a milestone QuoteOffer a defined scope and price for approval EstimateShare an expected cost range or provisional total ReceiptConfirm that a payment was received Credit noteCorrect or reduce an earlier invoice Proforma invoicePresent expected invoice details without issuing the final invoice

Invoice fields and payment terms

Understand the dates and terms a customer uses to read and pay an invoice.

Payment termsSet clear expectations for getting paid Invoice due dateTurn an agreed term into a clear calendar deadline Net 30Offer a customer a 30-day payment window Invoice numberIdentify and trace one specific invoice Invoice dateRecord when the invoice was issued PO numberConnect an invoice to the buyer's approved order Line itemDescribe and price each billed item clearly DepositSplit a project total into upfront and remaining amounts DiscountShow an agreed reduction transparently

Later reviewed releases: unit price, invoice subtotal, total amount due and milestone payment. Planned terms remain unlinked until complete.

Getting paid

Explain the account identifiers, transfer route, payment reference and optional QR that help a customer pay an invoice accurately.

Payment QRMake bank-transfer details easier to enter Bank transferTell the customer where and how to transfer payment IBANIdentify the beneficiary account in a standardized format BIC / SWIFT codeIdentify a financial or other business party for routing SEPA Credit TransferReceive a standardized euro credit transfer Payment referenceHelp the seller match an incoming payment.

VAT and cross-border

Understand VAT amounts, invoice presentation, identifiers and cross-border treatment, then check recorded intra-EU VAT status without confusing it with company identity or tax advice.

VATUnderstand the tax shown in invoice totals VAT rateApply a rate already confirmed for the transaction VAT invoicePresent VAT information clearly on an invoice VAT numberKeep VAT registration distinct from the company number VIESUnderstand what an official intra-EU VAT status check can show Reverse charge VATUnderstand when the customer, rather than the supplier, accounts for VAT Intra-EU invoiceCheck the transaction facts before choosing its VAT presentation

Calculate VAT with your rate Check a VAT number in VIES

Electronic invoicing

Distinguish a readable digital invoice from structured data that a receiving system can process automatically.

E-invoiceUnderstand what makes invoice data structured and machine-processable PDF invoiceUse a stable visual invoice without confusing it with structured e-invoicing EN 16931Understand the shared meaning and rules behind European e-invoices UBL invoice formatSee how structured invoice data is represented in UBL XML

View supported e-invoice XML Create a PDF invoice

Later reviewed releases: Peppol and Peppol BIS Billing. Planned terms remain unlinked until complete.

A growing map of invoicing

Future reviewed groups extend the knowledge map with Nordic invoicing terms.

Calculate a due date Browse invoicing guides