What is an invoice and when to use it

An invoice is a formal record of a sale that gives the customer a period of time—typically 14 to 90 days—to pay you. Unlike a cash sale, which is paid immediately (often via a sales receipt or POS), an invoice records the transaction as a credit sale, meaning the customer owes you money.

Use an invoice when:

• A customer buys goods or services and will pay later (not on the spot).
• You need a formal, dated record for accounting and legal purposes.
• The customer's credit is good and you trust them to pay within agreed terms.
• You need to track outstanding amounts owed to you (accounts receivable).

In Usystems, an invoice is linked to a specific customer and lists the items or services sold, quantities, prices, any discounts, taxes, and the total due. Each invoice is assigned a unique number (either auto-generated or manual), and you can mark it as Draft, Confirmed, or Paid as it moves through its lifecycle.

How invoices differ from other documents:

• Sales receipt: immediate cash payment; typically used for walk-in or one-time buyers.
• Sales order: a quote or standing order; a customer's intent to buy, not yet invoiced.
• Bill (from vendors): you are the buyer, not the seller.

In Usystems, you'll find invoices under Invoices in the main navigation, where you can create, edit, view, and manage all customer invoices. As you work with invoices—confirming them, adding payments, issuing refunds—the system tracks their status, helping you stay on top of who owes you what.