What is an invoice?

For: business owners who want to understand the document they are sending.

An invoice is a formal request for payment. You send it to a customer after delivering goods or services. It states what you delivered, how much the customer owes and when you expect payment.

What makes an invoice valid

Most tax authorities require a few core elements:

• A unique, sequential invoice number
• Your business name and address
• Your customer's name and address
• The date you issued the invoice
• A description of what you delivered
• The amount owed, including tax breakdown
• Payment terms (when payment is due)

Made with Pepper uses your saved details when you issue an invoice. Check the required information for your country and transaction before issue. The invoice number comes from your configured numbering sequence. Made with Pepper calculates the tax breakdown from per-line tax rates and uses the customer and company details from your records.

Invoice vs. other documents

Invoice vs. receipt. An invoice requests payment. A receipt confirms you received payment. Made with Pepper creates invoices. A payment below the balance due makes the invoice partially paid. When the current balance due reaches zero after payments, credit notes and refunds, the status changes to paid. Made with Pepper does not generate a separate receipt document.

Invoice vs. quote. A quote proposes a price before work begins. Its legal effect depends on its terms and acceptance. An invoice records a payment request under your agreement. Made with Pepper supports both, each with its own numbering sequence.

Invoice vs. pro-forma. A pro-forma invoice is a preliminary document; Made with Pepper does not treat it as a tax invoice or a receivable. It is a prepayment request or a preview of what the final invoice will look like. Made with Pepper supports pro-formas as a separate document type.

Invoice vs. credit note. A credit note reverses or reduces an invoice. If you overcharged a customer or need to correct a mistake after finalization, you issue a credit note against the original invoice. See Quotes, invoices, and credit notes.

Worked example

Mira Holst runs Northwind Studio, a small design studio. She finishes a website design project for Acme Hardware and creates an invoice:

• Invoice number: NW-2026-0003
• Issue date: 15 May 2026
• Due date: 14 June 2026 (30-day payment terms)
• Line items: 16 hours of website design at €125/hour, 4 hours of frontend development at €135/hour
• Subtotal: €2,540.00
• VAT (21%): €533.40
• Total: €3,073.40

She finalizes the invoice, which locks the number and stores the issued original PDF. Then she emails it. The PDF includes an EPC QR code because the invoice is in EUR and she selected a bank account with an IBAN. Acme Hardware's bookkeeper scans the QR code with their banking app, checks the transfer and confirms it.

What Made with Pepper does not do

Made with Pepper creates invoices and tracks payments. It does not file tax returns, calculate your tax obligations across jurisdictions, or replace your accountant. It gives you a structured invoice you can hand to your accountant at the end of the quarter.

Related pages

• Quotes, invoices, and credit notes
• Why invoice numbers must be sequential
• How payments work