How many basic types of invoices exist?

There are two basic types of invoices that are commonly recognized in accounts payable and accounting practices: standard invoices and debit memos.

Standard invoices are issued by sellers to request payment for goods or services provided. These invoices typically detail the items sold, their prices, and any applicable taxes, offering a complete breakdown of the transaction for the buyer to review.

Debit memos, on the other hand, are used to adjust a previous invoice or to provide credit to the buyer’s account. This type of invoice indicates that the buyer owes less than originally stated or is being refunded for a return or overpayment.

Other variations and specialized invoices can exist, but these two types form the foundational understanding of invoice categories in the context of accounts payable.