In which scenario would you typically use an Invoice?

Using an invoice is typically appropriate when payment is due in the future. An invoice serves as a formal request for payment that outlines the products or services provided, their costs, and payment terms. This document allows businesses to track receivables and maintain clarity about upcoming cash flows.

When an invoice is issued, it communicates to the customer that payment is expected at a later date, which could range from a few days to several weeks depending on the agreed-upon terms. This is crucial for businesses that operate on credit or offer services with payment timelines, providing a clear structure for collecting payments without requiring immediate transaction completion upon service delivery.

The other scenarios provided imply situations that typically do not warrant the issuance of an invoice. For immediate cash sales, businesses would usually issue a receipt rather than an invoice. Accumulating payments over a month can involve payment plans or statements of account but does not necessitate a detailed invoice for each transaction. One-time fees may also be more appropriate for a receipt, especially if full payment is made at the point of sale without further obligations.