What does the term "invoice" refer to in accounts payable?

The term "invoice" in accounts payable specifically refers to a document issued by a supplier that requests payment for goods or services provided. This document serves as an essential part of the transaction process between a buyer and a seller. It contains critical information such as the description of the products or services rendered, quantities, prices, terms of payment, and the due date for payment.

In the accounts payable process, the invoice acts as both a record of what has been delivered and a formal request for payment, marking the point at which the buyer recognizes a liability to pay the seller. This creates an obligation on the part of the buyer to make the payment within the agreed-upon time frame, ensuring that suppliers are compensated for their offerings.

Other choices refer to different financial documents or tools that play roles in financial management but do not define what an invoice is. A receipt, for instance, confirms that payment has been made, but it is not an invoice. The financial report on overdue payments pertains to monitoring and managing outstanding debts, while a list of suppliers and their payment terms focuses on supplier management rather than the invoicing process itself. Hence, the definition of an invoice is precisely captured in the first option.