--- id: CON-ACC-TRX-001 name: Invoice feature: FEAT-ACC-TRX-01 product_area: accounting module: transactions revision: 1 status: draft product_intent: proposed implementation_evidence: observed source_sha: services-accounting: f47cb263875bbc0c5640fba7dae6785ec32695f8 react-console: baf6dae382d6f41dce976c7f848667ccc37e076f definition: >- An invoice retains billed charges for one customer in a business unit and currency, with quotation, recognition and later settlement explained by its lifecycle and related records. owned_by: MOD-ACC-TRX synonyms: - bill - receivable not_to_be_confused_with: - An order (Commerce's record of what was bought; an order may produce one or more invoices) - A credit memo or debit memo (a separate document that changes what an invoice owes) - A statement (a summary of several invoices; not built) facets: - name: Draft meaning: An unnumbered working bill that can be replaced or removed. used_for: Preparing charges before recognition. - name: Pro forma meaning: A numbered quotation whose debt begins on conversion. used_for: Presenting proposed charges before billing. - name: Line meaning: 'Product charge detail retains quantities, prices, discounts, service dates and settled amounts.' used_for: Explaining billed value and its remaining debt. - name: Tax lines meaning: Per-rate tax detail is captured with the billed charge. used_for: Reviewing tax and matching later reductions. - name: Status meaning: 'Monetary position determines draft, outstanding, settled, cancelled, abandoned or void standing.' used_for: Explaining the bill’s current position. - name: Terms and due date meaning: Selected terms derive the due date unless an explicit date overrides them. used_for: Determining collections timing. - name: Revision meaning: An amendment counter distinguishes later versions of the same bill. used_for: Identifying changed customer documents. - name: Card-fee policy meaning: 'A frozen selection specifies whether processor fees are absent, compulsory or optional.' used_for: Determining fee treatment during tender. - name: Template and document meaning: 'Invoice, unit and built-in template choices supply readable document content.' used_for: Preparing customer viewing and delivery. - name: Source and order meaning: Billing origin and order references retain purchase context. used_for: Following the bill back to the source work. - name: Credit memo meaning: A separate reduction document changes selected billed value and its proportional tax. used_for: Correcting charges after issue. - name: Freed money meaning: Allocation release places unnecessary paid value back on its contributing receipt. used_for: Making returned value available for another financial action. - name: Debit memo meaning: A separate added-charge document increases the invoice’s debt with applicable tax. used_for: Recording later charges. - name: Write-off meaning: An adjustment records debt that finance no longer expects to collect. used_for: Preserving abandonment and its posting treatment. - name: Negating document meaning: Opposite lines or documents retain the explanation for undoing an adjustment. used_for: Restoring the earlier position without deleting history. - name: Billing reversal meaning: 'A coordinated cancellation records reduction, fee and return treatment together.' used_for: Unwinding a purchase through Accounting. relationships: - to: CON-ACC-TRX-002 statement: Adjustment documents change invoice debt while retaining separate correction records. provenance: observed source: 'services-accounting:modules/transactions/db/credit-memo-lines.table.ts' - to: CON-ACC-TRX-003 statement: Receipts settle lines through retained payment allocations. provenance: observed source: 'services-accounting:modules/transactions/db/payment-allocations.table.ts' - to: CON-ACC-TRX-004 statement: Credit settles billed lines through separate applications. provenance: observed source: 'services-accounting:modules/transactions/db/credit-application-lines.table.ts' - to: CON-ACC-TRX-006 statement: 'The invoice participates in shared document identity, posting context and history.' provenance: observed source: 'services-accounting:modules/transactions/db/invoices.table.ts' lifecycle: - state: draft meaning: Preparation with no document number or recognized debt. how_it_changes: 'Issue, removal or void ends preparation.' - state: open meaning: Recognized billing retains outstanding value. how_it_changes: Settlement and adjustments determine later standing. - state: 'paid, cancelled or written off' meaning: 'Settlement, cancellation or abandonment leaves no outstanding amount.' how_it_changes: Opposing financial actions can restore debt. - state: void meaning: Cancelled billing remains as a retained reference. how_it_changes: No ordinary reversal of void is available. acted_on_by: - CAP-ACC-TRX-001 - CAP-ACC-TRX-002 - CAP-ACC-TRX-003 - CAP-ACC-TRX-004 - CAP-ACC-TRX-005 - CAP-ACC-TRX-008 - CAP-ACC-TRX-009 visible_to: - ACT-ACC-012 - ACT-ACC-002 - ACT-ACC-021 evidence: - >- services-accounting at f47cb263875bbc0c5640fba7dae6785ec32695f8: docs/accounting/invoices.md, tax.md, document-templates.md; docs/architecture/accounting-2.0/02-decisions.md (M1-1, A-1, A-14, A-17, R-1, C-10); modules/transactions/db/invoices.table.ts, invoice-lines.table.ts, invoice-tax-lines.table.ts; services/invoices/*. - >- react-console at baf6dae382d6f41dce976c7f848667ccc37e076f: components/accounting/invoices/invoice-editor-screen.tsx, invoice-detail-screen.tsx; acceptance journeys ACT-ACC-0180 to 0226. supersedes: - CON-ACC-TRX-002 --- # Invoice ## What It Is An invoice gives staff and the customer a durable reference for a billed purchase. It identifies the customer, the business unit receiving the income, the currency and the individual charges. Staff prepare bills directly, while connected applications prepare them for orders and other billing work. The customer remains a contact or organization in CRM; the invoice retains the identifying information needed for that particular bill. A draft is working information. Issue establishes a numbered document, and a real invoice recognizes the debt. A pro forma supplies a numbered quotation without recognizing that debt until conversion. Those stages matter when staff explain whether a customer has merely received a quote or has actually been billed. Payment, credit and adjustment activity then explain what remains outstanding without replacing the identity of the original document. ## What It Is Not The invoice does not describe the complete order or its fulfillment. Commerce retains those responsibilities. Nor does a receipt establish what was sold: it explains collected money. Customer credit represents value available for later spending, whereas a credit memo changes a specific billed charge. An amendment changes eligible invoice content before posting; an adjustment retains a separate document explaining its financial effect. ## How It Is Used Staff prepare the customer and charges, review the draft and issue when the bill is ready. They use amendments for eligible corrections before posting and memos when a separate adjustment is needed. Later they inspect the remaining lines to explain payments or outstanding debt. Another person’s save can invalidate an editor’s version, and applied money can protect a line from amendment. Good handling begins by choosing the correction that matches the financial situation rather than trying to rewrite the earlier bill. ## Its Facets **Draft and pro forma.** These distinguish preparation from quotation and recognized billing. A quotation retains its reference through conversion, while a draft has not yet consumed a document number. **Lines and tax lines.** A charge retains product, quantity, price, discount and optional service dates. Separate tax detail preserves the calculation associated with that charge for later adjustment and reporting. **Standing and terms.** Amounts explain whether debt remains, has been paid, has been cancelled by credit or has been abandoned. Payment terms and due date provide the separate calendar context for collections. **Revision and presentation.** Amendments advance the revision so recipients can distinguish changed bills. Template selection prepares the readable document; delivery is a separate action rather than an automatic consequence of saving. **Card-fee policy and origin.** The invoice retains its selected fee treatment and where billing originated. Order references connect a bill back to the purchase without transferring order ownership to Accounting. **Credit memo and freed money.** A reduction can release paid value that the line no longer needs. That released value remains attached to the contributing receipt until another financial action uses it. **Debit memo and write-off.** Added charges and abandoned debt have different meanings for the customer and the books. Each therefore retains its own explanation and posting treatment. **Negating documents and billing reversal.** Opposing entries preserve a correction’s history. A coordinated billing reversal brings together reduction, cancellation fee and return treatment while keeping those component records distinguishable. ## How It Relates Payments and credit applications settle invoice lines. Customer-account views summarize the remaining debt alongside held money. Shared transaction safeguards preserve references, financial history and posting context. Books and Products supply configuration; batch management resolves ledger treatment at posting. Connected billing applications use the same financial records while retaining their own order or schedule responsibilities. ## What It Could Become The product should settle how staff-created taxable bills obtain Commerce’s tax determination. It should also expose the decided payment-plan standing and collection hold when Billing implements that contract. Staff document delivery and inspection of retained activity remain useful next steps. Those improvements should preserve the distinction between the bill, the money collected and a later correction.