What is Invoice?
Definition
A detailed billing document generated each billing cycle that itemizes the charges for a subscription service.
Understanding Invoice
Invoices are the official record of subscription payments. They typically include service details, billing period, charges breakdown, taxes, payment method used, and invoice number. For business subscriptions, invoices are essential for accounting, tax deductions, and expense reporting.
Most subscription services provide invoice history in account settings. For personal finance, downloading invoices helps track expenses and dispute incorrect charges. When managing multiple subscriptions, collecting invoices in one place provides a clear picture of total recurring costs and payment history.
Related Terms
Recurring Billing
An automatic payment system that charges a customer at predetermined intervals for ongoing access to a product or service.
Payment Date
The specific day within each billing cycle when a subscription payment is processed and charged to the subscriber's payment method.
Budgeting
The process of creating a plan for how to allocate income, including accounting for recurring subscription expenses.