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An invoice is a document that maintains a record of a transaction between a buyer and seller, such as a paper receipt from a store or an online record from an e-tailer. Invoices are a critical element of accounting internal controls and audits.

Initial Invoice means the first invoice relating to the applicable goods shipped or services rendered, and not any subsequent invoice relating thereto.

Invoice number examples Some examples of common invoice number formats include: 2021-027: This refers to the 27th invoice issued in the year 2021. 2021/INV/017: This refers to the 17th invoice issued in the year 2021. “INV” stands for invoice to differentiate it from other sales documents such as quotes.

They should be assigned sequentially, meaning that the number of each new invoice increases. Legally, an invoice number sequence should never contain repeats or gaps. It's not recommended to simply number invoices '1', '2', '3', etc. as this can be confusing when invoice numbers reach double or triple figures.

Start with whatever number you like, and then make them sequential. Example: 00001, 00002, etc. Assign numbers chronologically, by date. Example: 010118, 010218, etc.

Regardless of the system you use, beginning with one and following a sequential order of numbers is the easiest way to keep track of invoices. For example, consider the invoice prefixes used earlier. Maintaining a sequential order helps companies avoid the confusion of duplicate invoice numbers.

What should my first invoice number be? While it's up to you, most people would agree that the most convenient first invoice number should be '01'. Though, others prefer to add another zero, making the first number in the sequence '001'.