What Is an Open Invoice?

by William Adkins ; Updated September 26, 2017
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Extending credit to customers is a fact of life for many businesses. A vendor has to bill customers for goods and services they get on credit. The invoices a vendor sends out serve this purpose by providing the customer with a detailed statement of the transaction. An invoice is said to be open until payment is received and processed, at which time the invoice is closed.

Contents of an Open Invoice

Any invoice requesting payment is an open invoice because the amount due has not yet been paid. Invoices are usually sent on company letterhead and include both the business’s name and contact information and that of the customer. An invoice provides the customer an itemized list of charges, amounts carried over from previous invoices and any credits or payments already received. The total amount due, along with information about any early payment discounts and late payment fees, is also included. Finally, the invoice should clearly state where to send payments.

About the Author

Based in Atlanta, Georgia, William Adkins has been writing professionally since 2008. He writes about small business, finance and economics issues for publishers like Chron Small Business and Bizfluent.com. Adkins holds master's degrees in history of business and labor and in sociology from Georgia State University. He became a member of the Society of Professional Journalists in 2009.

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