Invoice is a bill that you send to your customer for the services or the products that you have sold. All businesses have to generate invoices. It is part of running a business.
Every invoice has payment terms attached to it. Payment terms tell how and when the payment will be made. For example, a payment term “Immediate” means that the payment will be made right when the service is purchased whereas “Net 15” means that payment will be made after 15 days. This is an important piece of information. It tells you when you can expect a receipt.