Definition: An invoice is a commercial document issued by a seller to a buyer relating to a sale transaction and indicating the products, quantities, and agreed-upon prices for products or services the seller had provided the buyer. Source: WikiPedia Source reference: https://en.wikipedia.org/wiki/Invoice Additional information: An invoice, within the European IT context, is a crucial document that serves as a formal request for payment from a seller to a buyer. It is a comprehensive record of a commercial transaction, providing detailed information about the goods or services provided, their quantities, prices, and any applicable taxes or discounts. The invoice acts as a legally binding agreement between the seller and the buyer, outlining the terms and conditions of the sale. In the European IT context, an invoice typically includes specific information required by local regulations and tax laws. This information may vary across different European countries, but generally includes: 1. Invoice Number: A unique identifier assigned to each invoice, enabling easy tracking and reference. 2. Invoice Date: The date when the invoice is issued, indicating the start of the payment period. 3. Seller's Information: The name, address, and contact details of the seller, including their VAT (Value Added Tax) identification number. 4. Buyer's Information: The name, address, and contact details of the buyer, including their VAT identification number if applicable. 5. Description of Goods/Services: A detailed description of the goods or services provided, including quantities, unit prices, and any applicable discounts. 6. Total Amount: The total amount payable by the buyer, including any taxes, shipping costs, or additional charges. 7. Payment Terms: The agreed-upon terms for payment, such as the due date, accepted payment methods, and any penalties for late payment. 8. VAT Information: If applicable, the invoice should clearly state the VAT rate applied to the transaction and provide a breakdown of the taxable amount and the corresponding VAT amount. 9. Currency: The currency in which the payment should be made, especially relevant for cross-border transactions within the European Union. 10. Bank Details: The seller's bank account details, enabling the buyer to make the payment conveniently. In addition to serving as a payment request, invoices also play a vital role in accounting and financial reporting. They provide evidence of revenue for the seller and serve as a basis for calculating taxes, tracking sales, and managing inventory. Furthermore, invoices facilitate the reconciliation of accounts between buyers and sellers, ensuring transparency and accuracy in financial transactions. In the European IT context, electronic invoicing (e-invoicing) has gained significant popularity due to its efficiency and cost-effectiveness. E-invoices are digitally generated, transmitted, and stored, eliminating the need for paper-based invoices. They often adhere to specific standards, such as the European standard EN 16931, to ensure interoperability and seamless exchange of invoice data between different systems and organizations. Overall, invoices are a fundamental component of information within the European IT context, enabling smooth and transparent financial transactions while complying with local regulations and tax requirements. Example: The invoice is a crucial element or component of information in various applications within the European IT context. Here are a few examples: 1. Accounting Software: In accounting software applications, invoices are used to record and track financial transactions. They serve as a formal request for payment from a seller to a buyer, providing details such as the products or services provided, quantities, prices, and payment terms. Invoices generated by the software are essential for maintaining accurate financial records, calculating taxes, and generating financial reports. 2. E-commerce Platforms: In e-commerce platforms, invoices play a vital role in facilitating online transactions. When customers make purchases, invoices are automatically generated and sent to them as proof of purchase. These invoices contain information about the purchased items, prices, shipping details, and any applicable taxes. They help ensure transparency, enable returns or exchanges, and serve as a legal document for both the buyer and the seller. 3. Supply Chain Management Systems: In supply chain management systems, invoices are used to document the movement of goods and services between different entities within the supply chain. They provide information about the sender, receiver, quantity, description, and value of the goods or services exchanged. Invoices help track inventory, monitor payments, and streamline the overall supply chain process. 4. Enterprise Resource Planning (ERP) Systems: ERP systems integrate various business processes, including finance, sales, and procurement. Invoices are a critical component within ERP systems as they enable seamless communication and coordination between different departments. For example, when a sales order is fulfilled, an invoice is automatically generated, triggering the accounting department to record the transaction and update financial statements. 5. Tax Compliance: Invoices are essential for tax compliance purposes within the European IT context. They serve as evidence of taxable transactions and are required by tax authorities for auditing and verification. Invoices must adhere to specific legal requirements, such as including the seller's and buyer's tax identification numbers, VAT rates, and other relevant tax information. Compliance with invoicing regulations ensures accurate tax reporting and prevents potential penalties. Overall, the application of invoices as an element or component of information is widespread in various European IT contexts, supporting financial management, e-commerce, supply chain operations, ERP systems, and tax compliance. LOST view: OV-Functional Architecture Principles Identifier: http://data.europa.eu/dr8/egovera/InvoiceBusinessObject EIRA traceability: eira:InformationBusinessObject ABB name: egovera:InvoiceBusinessObject EIRA concept: eira:ArchitectureBuildingBlock Last modification: 2023-07-04 dct:identifier: http://data.europa.eu/dr8/egovera/InvoiceBusinessObject dct:title: Invoice Information