What is Invoicing? Definition and meaning
Invoicing comes from the Latin (“factura”) and literally means “the processing”. It is often used as a synonym for invoice. However, the term invoicing is more of an umbrella term for documents that, on the basis of a concluded contract, inform about the amount due. In addition to the classic invoice, receipts or self-created vouchers that document an order can also be recorded under the term invoicing.
Tasks of Invoicing
An invoicing document lists delivered items and amounts to be paid. There are also various mandatory details that an invoice must contain, e.g. the company name, the VAT ID, payment terms, etc. Further information can be found in §§ 31 to 34 of the German VAT Implementation Ordinance.
What is Billing?
The issuing of invoices is accordingly referred to as “billing”. This also encompasses related areas of invoicing, such as creating a credit note, issuing payment reminders, or posting individual items. It defines the entire invoicing process. Integrated software solutions now offer partially automated invoicing for companies.