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Invoice Meaning

A commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller has provided. In business-to-business (B2B) commerce, the invoice is the "trigger" for the payment process.

Traditional invoicing is slow and prone to errors. Paper or PDF invoices must be manually entered into accounting systems, and payments are often "reconciled" days or weeks later.

This creates "accounts receivable" friction that slows down a company's cash flow. Modern "smart invoices" are being built on ledgers.

These invoices are machine-readable and can even contain "embedded" payment links or smart contracts. When the buyer pays the invoice, the ledger is updated automatically, the merchant's inventory is adjusted, and the tax is calculated in real-time, eliminating the need for manual bookkeeping.

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