Invoicing clause: Copy, customize, and use instantly
Introduction
An invoicing clause outlines the terms and conditions under which invoices are issued, including payment schedules, details to be included on the invoices, and any penalties for late payment. It ensures that both parties understand the procedures for billing and the responsibilities associated with payments.
Below are templates for invoicing clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard invoicing clause
This variation applies when general invoicing terms are specified.
[Party Name] agrees to issue invoices to [Other Party Name] for services rendered on a monthly basis. Each invoice will include a detailed breakdown of the services provided, the amount due, and the applicable payment terms. Payment is due within [X] days of the invoice date.
Payment terms and invoicing frequency clause
This variation applies when payment terms and invoicing frequency are specified.
[Party Name] agrees to issue invoices for services rendered at the end of each month, with payment due within [X] days of receipt of the invoice. Invoices will include a detailed description of the services provided and the total amount due, with a late payment penalty of [X]% per month for overdue balances.
Electronic invoicing clause
This variation applies when invoices will be issued electronically.
[Party Name] agrees to issue all invoices electronically to the email address provided by [Other Party Name]. Invoices will be sent in PDF format, and payment is due within [X] days from the date of the electronic invoice.
Late payment penalty clause
This variation applies when a penalty for late payment is included.
[Party Name] agrees that in the event of a late payment, [Other Party Name] will incur a late fee of [X]% of the total outstanding balance for each [X] days the payment is delayed. These fees will be included in the next invoice.
Invoicing dispute clause
This variation applies when a process for handling invoicing disputes is outlined.
[Party Name] agrees that if [Other Party Name] disputes any charges on an invoice, [Other Party Name] will notify [Party Name] in writing within [X] days of receipt of the invoice. Both parties will work in good faith to resolve any discrepancies promptly. Payment of undisputed amounts is still due on the original payment date.
Invoice adjustment clause
This variation applies when adjustments to invoices are allowed.
[Party Name] agrees that invoices may be adjusted in the event of billing errors, overcharges, or undercharges. Adjustments will be reflected in the next invoice issued to [Other Party Name]. Any adjustments must be agreed upon by both parties in writing.
Tax inclusion clause
This variation applies when taxes must be included on invoices.
[Party Name] agrees that all invoices will include applicable taxes, such as sales tax or VAT, in accordance with local laws and regulations. The tax amount will be itemized separately from the total amount due on each invoice.
Currency specification clause
This variation applies when invoices must specify the currency in which payment is due.
[Party Name] agrees that all invoices will be issued in [currency], and payments must be made in the specified currency. If payment is made in any other currency, [Other Party Name] will be responsible for any conversion fees or additional charges incurred.
Payment method clause
This variation applies when specific payment methods are required.
[Party Name] agrees that payments for invoices will be made by [specified payment method, e.g., wire transfer, credit card, ACH transfer]. The details for submitting payment will be included in each invoice.
Pro-forma invoice clause
This variation applies when pro-forma invoices are issued before the final invoice.
[Party Name] agrees to issue pro-forma invoices before final invoicing for services rendered. The pro-forma invoice will provide an estimate of the total charges, and the final invoice will reflect any adjustments based on actual services provided.
Invoice delivery method clause
This variation applies when the method of delivering invoices is specified.
[Party Name] agrees to deliver invoices to [Other Party Name] via [delivery method, e.g., email, physical mail, online portal]. Invoices will be considered received on the date of delivery, and payment will be due within [X] days from that date.
Invoice approval clause
This variation applies when invoice approval is required before payment.
[Party Name] agrees that [Other Party Name] will review and approve all invoices within [X] days of receipt. If [Other Party Name] fails to approve or dispute the invoice within the specified time frame, the invoice will be considered accepted and due for payment.
Multi-part invoice clause
This variation applies when invoices are split into multiple parts for large projects.
[Party Name] agrees to issue multiple invoices for services rendered under large projects. Each invoice will correspond to a specific milestone or deliverable, and payment will be due within [X] days of receiving each invoice. The final invoice will reflect any remaining balance after all previous payments have been made.
Advance payment clause
This variation applies when advance payments are required before work begins.
[Party Name] agrees to issue an invoice for an advance payment of [X]% of the total project cost before commencing work. The remaining balance will be invoiced upon completion of the project or according to the agreed-upon payment schedule.
Partial payment clause
This variation applies when partial payments are accepted.
[Party Name] agrees to allow [Other Party Name] to make partial payments on the total invoice amount. Payments will be due in [X] installments, and each installment will be invoiced separately, with specific due dates for each payment.
Recurring invoicing clause
This variation applies when invoices are issued on a recurring basis.
[Party Name] agrees to issue recurring invoices on a [monthly/quarterly] basis for ongoing services. Each invoice will include a breakdown of services rendered, and payments will be due within [X] days of receipt of each recurring invoice.
Invoice tracking clause
This variation applies when invoicing will be tracked through a system.
[Party Name] agrees to utilize an invoicing system to track all invoices issued and payments received. [Other Party Name] may request a copy of the payment history or status of outstanding invoices at any time during the term of this agreement.
Invoice dispute resolution clause
This variation applies when disputes related to invoices are to be resolved through a specific process.
[Party Name] agrees that any disputes regarding invoices must be resolved through informal discussions between both parties. If the dispute cannot be resolved within [X] days, the issue will be escalated to a mediator or arbitrator for resolution.
Early payment discount clause
This variation applies when an early payment discount is offered.
[Party Name] agrees to offer a [X]% discount on invoices if payment is made within [X] days of receiving the invoice. The discount will be applied to the total invoice amount and will be reflected in the payment instructions.
Late payment interest clause
This variation applies when interest is charged on late payments.
[Party Name] agrees that in the event of late payment, interest will be charged on the outstanding balance at a rate of [X]% per month or the maximum rate allowed by law, whichever is lower. This interest will accrue from the due date until the payment is received in full.
Payment reconciliation clause
This variation applies when payments must be reconciled against invoices.
[Party Name] agrees to reconcile all payments against the invoices issued. If any discrepancies are found between the payment and the invoice, both parties will work together to resolve the issue promptly.
Special invoicing instructions clause
This variation applies when special instructions for invoicing are provided.
[Party Name] agrees to include any special invoicing instructions from [Other Party Name] in the invoices issued. These instructions will be communicated in writing prior to the first invoice being sent.
No offset clause
This variation applies when offsetting payments against future invoices is prohibited.
[Party Name] agrees that payments on invoices cannot be offset or deducted for any reason, including disputes or other balances owed by [Other Party Name]. Any unpaid amounts will be settled as per the agreed terms.
Non-refundable charges clause
This variation applies when certain charges are non-refundable.
[Party Name] agrees to include a non-refundable charge of [X]% on all invoices for services that are not eligible for a refund. This charge will be outlined clearly on the invoice and will be due along with the total payment.
Split invoice clause
This variation applies when invoices are split into multiple sections based on different services or products.
[Party Name] agrees to issue split invoices for services rendered, with separate sections for each service or product provided. Each section will include detailed descriptions of the service/product, the quantity, and the amount due.
Invoice payment dispute period clause
This variation applies when there is a designated period for disputing invoices.
[Party Name] agrees that [Other Party Name] has [X] days from the date of invoice receipt to dispute any charges. After this period, the invoice will be deemed accepted and payment will be due as stated.
Clear invoice breakdown clause
This variation applies when invoices must include a clear breakdown of charges.
[Party Name] agrees that all invoices issued will include a clear and detailed breakdown of charges, including the quantity, unit price, applicable taxes, and any discounts applied. The breakdown will ensure transparency in billing.
Escalation procedure for overdue invoices clause
This variation applies when an escalation procedure is in place for overdue invoices.
[Party Name] agrees to follow a formal escalation procedure if any invoice is overdue by more than [X] days. This procedure includes initial reminder notices, followed by a formal demand letter, and may include additional legal action if necessary.
Time-bound payment schedule clause
This variation applies when invoices must be paid according to a fixed schedule.
[Party Name] agrees to follow a time-bound payment schedule for invoices, with payments due on specific dates outlined in the payment terms. Delayed payments will be subject to penalties as outlined in this agreement.
Invoice retention clause
This variation applies when invoices must be retained for record-keeping.
[Party Name] agrees to retain all invoices issued under this agreement for a period of at least [X] years for record-keeping and audit purposes. These invoices will be made available to [Other Party Name] upon request.
Incremental invoicing clause
This variation applies when invoicing is done incrementally based on project milestones.
[Party Name] agrees to issue invoices incrementally based on the completion of project milestones. Each milestone will trigger an invoice, and the amount due will correspond to the percentage of completion. Payment will be due within [X] days of receiving the invoice for each milestone.
Pro-rata invoicing clause
This variation applies when invoicing is done on a pro-rata basis.
[Party Name] agrees to issue pro-rata invoices for services that are provided over a period of time. The amount due will be calculated based on the number of days the service was provided during the billing period.
Recurring invoice adjustment clause
This variation applies when recurring invoices may be adjusted.
[Party Name] agrees that recurring invoices for services rendered may be adjusted to reflect any changes in the scope of services or the applicable pricing. Any adjustments will be reflected in the next billing cycle and will be communicated to [Other Party Name] in advance.
Invoice dispute resolution procedure clause
This variation applies when a formal dispute resolution procedure for invoices is outlined.
[Party Name] agrees to follow a formal procedure for resolving any disputes regarding invoices. If [Other Party Name] disputes any charge, both parties will attempt to resolve the issue through discussion within [X] days. If the dispute remains unresolved, it will be escalated to a mediator for arbitration.
Payment upon receipt clause
This variation applies when payment is due upon receipt of the invoice.
[Party Name] agrees that payment is due upon receipt of the invoice. [Other Party Name] will make payment within [X] days of receiving the invoice unless otherwise agreed upon in writing.
Progressive invoicing clause
This variation applies when invoices are issued progressively based on project completion.
[Party Name] agrees to issue progressive invoices based on the completion of specific project milestones. Each invoice will reflect the percentage of work completed, and payment is due within [X] days of the invoice date.
Invoicing for non-refundable services clause
This variation applies when services provided are non-refundable.
[Party Name] agrees to issue invoices for non-refundable services rendered. Invoices will be issued upon completion of services, and payment is due immediately upon receipt of the invoice. No refunds will be issued for any payments made.
Invoice reissuance clause
This variation applies when an invoice can be reissued if necessary.
[Party Name] agrees that in the event of a billing error or omission, [Other Party Name] may request that the invoice be reissued. The corrected invoice will be provided to [Other Party Name] within [X] business days.
Payment terms clarification clause
This variation applies when payment terms need further clarification.
[Party Name] agrees to clearly specify all payment terms on each invoice, including the payment due date, accepted payment methods, and any applicable late fees. Any ambiguities in the invoice will be clarified by [Party Name] within [X] days upon notification.
Invoicing method change clause
This variation applies when the method of invoicing is subject to change.
[Party Name] agrees to notify [Other Party Name] at least [X] days in advance if there is a change to the invoicing method, such as a shift from paper invoices to electronic invoices, to allow [Other Party Name] to make necessary adjustments.
Multi-currency invoicing clause
This variation applies when invoices are issued in multiple currencies.
[Party Name] agrees to issue invoices in [specified currency], but [Other Party Name] may request that invoices be issued in a different currency. If a currency conversion is necessary, the exchange rate applicable on the invoice date will be used.
Invoice processing fee clause
This variation applies when an additional processing fee is added to invoices.
[Party Name] agrees to add a processing fee of [X]% to the total invoice amount for handling and administrative expenses. This fee will be itemized separately on the invoice.
Consolidated invoicing clause
This variation applies when multiple services are billed on a consolidated invoice.
[Party Name] agrees to issue consolidated invoices that include charges for all services rendered during the billing period. Each consolidated invoice will include a breakdown of individual services and the corresponding charges.
Invoice payment extension clause
This variation applies when payment extension is granted.
[Party Name] agrees to extend the payment deadline for [Other Party Name] by [X] days if requested. The extended payment deadline will be confirmed in writing, and no late fees will be assessed within the agreed extension period.
Late payment interest calculation clause
This variation applies when interest is charged on late payments, with specific calculation methods.
[Party Name] agrees to charge interest on late payments at a rate of [X]% per annum. The interest will be calculated daily on the outstanding balance and will be added to the next invoice for the overdue amount.
Direct deposit invoicing clause
This variation applies when payment for invoices is made via direct deposit.
[Party Name] agrees that all payments for invoices will be made through direct deposit to the designated bank account. The payment instructions will be included in the invoice, and payment is due within [X] days of receiving the invoice.
Electronic payment discount clause
This variation applies when an electronic payment discount is offered.
[Party Name] agrees to offer a [X]% discount on the total invoice amount if payment is made via electronic methods, such as wire transfer or online payment systems. The discount will be reflected in the invoice if payment is received by the due date.
Invoice adjustment for additional services clause
This variation applies when additional services must be invoiced separately.
[Party Name] agrees to issue separate invoices for any additional services provided outside the scope of the original agreement. Each additional invoice will include a clear breakdown of the services rendered, and payment is due within [X] days.
Late fee waiver clause
This variation applies when late fees can be waived under certain conditions.
[Party Name] agrees to waive the late fee for invoices paid up to [X] days after the due date, provided that the delay is due to reasonable circumstances, such as banking errors or natural disasters. Late fee waivers must be requested in writing.
Discount for early payment clause
This variation applies when a discount is offered for early payment.
[Party Name] agrees to offer a [X]% discount on the invoice total if payment is made within [X] days of the invoice date. The discount will be reflected on the invoice and deducted from the total amount due upon payment.
Project-based invoicing clause
This variation applies when invoicing is based on specific projects.
[Party Name] agrees to issue separate invoices for each project milestone completed. Each invoice will reflect the cost of the services provided up to that point and will be due within [X] days of the milestone completion.
Invoicing schedule clause
This variation applies when the invoicing schedule is defined.
[Party Name] agrees to issue invoices on the [specified day] of each month for services rendered during the previous month. Payment for each invoice is due by the [specified day] of the following month.
Invoice dispute resolution time frame clause
This variation applies when a time frame for resolving invoice disputes is set.
[Party Name] agrees that any disputes regarding invoices must be resolved within [X] days from the invoice receipt date. If the dispute is not resolved within this period, the invoice will be considered accepted, and payment will be due as originally stated.
Partial invoice payments clause
This variation applies when partial payments for invoices are allowed.
[Party Name] agrees to allow partial payments on invoices for ongoing services. Each partial payment will be due within [X] days of receiving the invoice, and the final balance is due upon completion of the services.
Invoice accuracy guarantee clause
This variation applies when the accuracy of the invoices is guaranteed.
[Party Name] agrees to ensure that all invoices are accurate and reflect the correct charges for services provided. If any discrepancies are found, [Party Name] will issue a corrected invoice within [X] business days.
Invoice payment reminder clause
This variation applies when reminders will be sent for overdue invoices.
[Party Name] agrees to send a payment reminder to [Other Party Name] if an invoice is not paid by the due date. Reminders will be sent [X] days after the invoice due date, and late fees may apply after an additional [X] days.
Payment confirmation clause
This variation applies when payment confirmation is required.
[Party Name] agrees to provide [Other Party Name] with a confirmation of payment upon receipt of each payment made against an invoice. The confirmation will include the invoice number, payment amount, and the payment date.
Payment term adjustment clause
This variation applies when payment terms can be adjusted.
[Party Name] agrees to adjust the payment terms for invoices in the event of a significant change in the financial situation of [Other Party Name]. Any adjustments will be negotiated and documented in writing.
Non-payment consequences clause
This variation applies when there are consequences for non-payment.
[Party Name] agrees that failure to make payment on any invoice within [X] days will result in [specified consequence, such as service suspension, legal action, etc.]. These terms will be enforced after the specified grace period.
Invoice for third-party services clause
This variation applies when invoices include charges for third-party services.
[Party Name] agrees to include charges for third-party services rendered as part of the overall invoice. These charges will be clearly itemized and are subject to the same payment terms as services provided by [Party Name].
Disputed charge resolution clause
This variation applies when the resolution process for disputed charges is outlined.
[Party Name] agrees to resolve any disputed charges related to invoices through direct communication within [X] days. If a dispute remains unresolved, it will be escalated to a third-party mediator for resolution.
Prepaid service invoicing clause
This variation applies when prepaid services are invoiced.
[Party Name] agrees to issue invoices for prepaid services before services are rendered. The invoice will cover the full amount due for the prepaid services, and payment will be due within [X] days of the invoice date.
Invoice credit clause
This variation applies when credit is issued on invoices.
[Party Name] agrees that any credits owed to [Other Party Name] will be applied to the next invoice or refunded as specified. Credits will be clearly itemized on the invoice and will reduce the total amount due.
Late payment penalty clause
This variation applies when a penalty is imposed for late payments.
[Party Name] agrees that a penalty of [X]% per month will be applied to any unpaid invoices after [X] days past the due date. The penalty will be added to the total balance of the overdue invoice and is due along with the original amount.
Pro-rata billing clause
This variation applies when billing is done on a pro-rata basis for part-period services.
[Party Name] agrees to bill [Other Party Name] on a pro-rata basis for services provided for any partial periods during the billing cycle. The amount due will be calculated based on the number of days the services were rendered during the period.
Invoice verification clause
This variation applies when invoices must be verified by both parties before payment.
[Party Name] agrees to submit invoices for verification by [Other Party Name] before payment. [Other Party Name] must verify and approve the invoice within [X] days, after which the invoice will be considered accepted.
Invoice payment method clause
This variation applies when a specific payment method is required for invoice payments.
[Party Name] agrees that payments for invoices will be made using [specified payment method, e.g., wire transfer, check, credit card]. Payments made using alternative methods will not be accepted unless agreed upon in writing.
Early settlement discount clause
This variation applies when a discount is given for early settlement of invoices.
[Party Name] agrees to offer [Other Party Name] a [X]% discount on invoices if paid within [X] days of receipt. The discount will be applied to the total amount due and reflected on the next invoice.
Invoice discrepancy clause
This variation applies when discrepancies in invoices are to be resolved.
[Party Name] agrees that if there is any discrepancy in an invoice, [Other Party Name] must notify [Party Name] in writing within [X] days of receipt. If no notice is given within this period, the invoice will be considered accepted and payment will be due as stated.
Payment installment plan clause
This variation applies when invoices can be paid in installments.
[Party Name] agrees that [Other Party Name] may pay invoices in [X] equal installments over a period of [X] months. Each installment will be due on the [specified day] of the month following the invoice date.
Payment receipt clause
This variation applies when payment receipts must be provided.
[Party Name] agrees to provide [Other Party Name] with a payment receipt for every payment made against an invoice. The receipt will include the invoice number, amount paid, and the date of payment.
Invoice rejection clause
This variation applies when an invoice can be rejected due to errors.
[Party Name] agrees that if an invoice contains any errors, such as incorrect billing information or charges, [Other Party Name] reserves the right to reject the invoice and request a corrected version within [X] days of receipt.
Invoice dispute response time clause
This variation applies when there is a specified time for responding to invoice disputes.
[Party Name] agrees that if [Other Party Name] disputes an invoice, both parties will attempt to resolve the dispute within [X] days. If the dispute is not resolved within this period, the invoice will be escalated for resolution as per the dispute resolution terms.
Tax adjustment clause
This variation applies when tax adjustments are made to invoices.
[Party Name] agrees to adjust invoices for any changes in applicable taxes, such as sales tax, VAT, or other local taxes. The adjusted tax amount will be reflected in the next invoice issued to [Other Party Name].
Multiple currency invoice clause
This variation applies when invoices are issued in different currencies.
[Party Name] agrees that invoices may be issued in multiple currencies depending on the location of the services provided. The exchange rate used to convert the amounts will be the rate applicable on the date the invoice is issued.
Service-specific invoice clause
This variation applies when different services have separate invoices.
[Party Name] agrees to issue separate invoices for each service provided under this agreement. Each invoice will reflect only the services related to the specific scope of work completed during the billing period.
Invoice delivery notification clause
This variation applies when a notification must be sent upon invoice delivery.
[Party Name] agrees to notify [Other Party Name] immediately upon the delivery of an invoice. The notification will include a summary of the invoice details and the due date.
Invoice overpayment refund clause
This variation applies when overpayments are refunded.
[Party Name] agrees to refund any overpayments made by [Other Party Name] within [X] days of identifying the overpayment. The refund will be made through the same payment method used for the original payment.
Invoice deadline extension clause
This variation applies when the invoice payment deadline can be extended.
[Party Name] agrees that the payment deadline for any invoice may be extended by mutual agreement between the parties. Any extension will be documented in writing, and the extended payment date will be binding.
Invoice partial approval clause
This variation applies when an invoice can be partially approved for payment.
[Party Name] agrees that if only part of an invoice is disputed, [Other Party Name] will pay the undisputed portion of the invoice by the due date. The disputed portion will be resolved separately, and any remaining balance will be paid once the dispute is resolved.
Non-payment collection clause
This variation applies when non-payment will result in collection actions.
[Party Name] agrees that any unpaid invoices will be referred to a collection agency after [X] days of non-payment. All associated collection costs and legal fees will be borne by [Other Party Name].
Payment upon invoice receipt clause
This variation applies when payment is due immediately upon receipt of the invoice.
[Party Name] agrees that payment for each invoice is due immediately upon receipt. Invoices not paid within [X] days of receipt will be subject to late fees as specified in this agreement.
Invoice amendment clause
This variation applies when invoices may be amended after issuance.
[Party Name] agrees that invoices may be amended or corrected after issuance if any errors are identified. Any amendments will be documented, and [Other Party Name] will receive a revised invoice within [X] business days.
Invoice confidentiality clause
This variation applies when invoices are subject to confidentiality.
[Party Name] agrees to maintain the confidentiality of all invoices issued under this agreement. Invoices will not be disclosed to any third parties without the prior written consent of [Other Party Name], except as required by law.
Invoice reconciliation clause
This variation applies when invoices need to be reconciled before payment.
[Party Name] agrees that any invoices sent to [Other Party Name] will be subject to reconciliation before payment. If any discrepancies are found, both parties will work together to resolve the issue before payment is made.
Invoice payment tracking clause
This variation applies when payments against invoices must be tracked.
[Party Name] agrees to maintain a detailed log of payments made against each invoice. This log will be made available to [Other Party Name] upon request to ensure transparency and proper tracking of all payments.
Monthly billing cycle clause
This variation applies when invoicing follows a monthly cycle.
[Party Name] agrees to issue invoices on a monthly basis for services rendered during the preceding month. Payment for each invoice is due within [X] days of receipt, and a late fee will be applied to overdue balances.
Electronic funds transfer clause
This variation applies when payments are made via electronic funds transfer.
[Party Name] agrees to accept payments by electronic funds transfer (EFT) for invoices. Payment details, including the bank account information, will be provided on each invoice to facilitate EFT transactions.
Invoice clarification request clause
This variation applies when clarification of an invoice can be requested.
[Party Name] agrees to provide clarification for any invoices upon request by [Other Party Name]. Clarifications must be requested within [X] days of receiving the invoice, and [Party Name] will respond with the requested details within [X] business days.
Invoice submission deadline clause
This variation applies when invoices must be submitted by a specific deadline.
[Party Name] agrees to submit invoices to [Other Party Name] by the [X]th day of each month for services rendered during the previous month. Late submissions may result in delayed payments.
Invoice approval process clause
This variation applies when an approval process is required for invoices.
[Party Name] agrees that all invoices issued to [Other Party Name] will be subject to an internal approval process before payment is made. The approval process will be completed within [X] days, after which payment will be due.
Project milestone invoicing clause
This variation applies when invoices are tied to project milestones.
[Party Name] agrees to issue invoices upon completion of each project milestone. Each invoice will reflect the value of the milestone completed, and payment is due within [X] days of receipt of the invoice.
Final payment invoice clause
This variation applies when a final invoice is issued for project completion.
[Party Name] agrees to issue a final invoice upon the completion of the project. The final invoice will reflect any remaining balance due after the completion of all previous milestones and will be due within [X] days.
Volume discount invoicing clause
This variation applies when volume discounts are given on invoices.
[Party Name] agrees to provide a volume discount on invoices if [Other Party Name] purchases services or products in larger quantities. The discount will be reflected in the total invoice amount and will be applied based on the volume purchased during the billing period.
Invoice dispute notification period clause
This variation applies when a specific period is allocated to notify disputes regarding invoices.
[Party Name] agrees that any disputes related to an invoice must be reported to [Other Party Name] within [X] days of receipt. If no disputes are raised within this period, the invoice will be considered accepted and payable.
Invoice itemization clause
This variation applies when invoices must be fully itemized.
[Party Name] agrees to ensure that all invoices are itemized with a detailed breakdown of the services provided, including the quantity, unit price, and applicable taxes. This ensures transparency and clarity for both parties.
Payment due date clause
This variation applies when a specific due date is set for invoices.
[Party Name] agrees that payment for each invoice will be due [X] days after the invoice date. Late payments will incur interest at a rate of [X]% per month until the balance is settled.
Invoice correction clause
This variation applies when invoices may be corrected after issuance.
[Party Name] agrees that if an error is found on an issued invoice, it will be corrected promptly and reissued. The corrected invoice will include any necessary adjustments to the amounts previously stated.
Invoice cancellation clause
This variation applies when an invoice can be canceled.
[Party Name] agrees that invoices may be canceled or revised if mutually agreed upon by both parties due to discrepancies or a change in the scope of work. Any such cancellation will be confirmed in writing.
Payment confirmation clause
This variation applies when a payment confirmation is required.
[Party Name] agrees to provide a payment confirmation upon receiving payment for an invoice. This confirmation will include details of the invoice number, the payment amount, and the payment method used.
Disputed invoice suspension clause
This variation applies when payment is suspended for disputed invoices.
[Party Name] agrees that any invoice under dispute will be suspended from payment until the dispute is resolved. Both parties will work to resolve the issue within [X] days from notification of the dispute.
Recurring charge adjustment clause
This variation applies when recurring charges are adjusted periodically.
[Party Name] agrees that recurring charges may be adjusted annually or based on changes in market conditions. [Other Party Name] will be notified of any price changes at least [X] days before the new charges take effect.
Invoice refund clause
This variation applies when a refund is due on an invoice.
[Party Name] agrees to issue a refund for any overpayment made on an invoice within [X] days of discovering the overpayment. The refund will be issued via the same payment method used for the original payment.
Multi-item service clause
This variation applies when invoices include multiple services or products.
[Party Name] agrees to itemize invoices that include multiple services or products, with each item’s cost listed separately. This breakdown will help [Other Party Name] understand the charges and make it easier to process payments.
Invoice dispute resolution timeline clause
This variation applies when there is a specified timeline for resolving invoice disputes.
[Party Name] agrees that any disputes regarding invoices will be resolved within [X] business days. If the dispute remains unresolved after this period, the invoice will be considered final and payable.
Payment installment agreement clause
This variation applies when payment can be made in installments.
[Party Name] agrees to allow [Other Party Name] to pay invoices in installments. The terms of the installment plan, including the payment amounts and due dates, will be outlined in the invoice and mutually agreed upon.
Final invoice clarification clause
This variation applies when a final invoice requires clarification.
[Party Name] agrees that the final invoice issued for the project will include a detailed clarification of the final costs, reflecting any adjustments from previous invoices, and will be due within [X] days.
Tax-exempt status clause
This variation applies when [Other Party Name] is tax-exempt.
[Party Name] agrees to recognize [Other Party Name]'s tax-exempt status and exclude applicable sales tax or VAT from invoices, provided that [Other Party Name] submits proof of tax-exempt status prior to the issuance of the first invoice.
Prepayment requirement clause
This variation applies when prepayment is required before services are rendered.
[Party Name] agrees that services will not be provided until [Other Party Name] has made a prepayment of [X]% of the total invoice amount. The prepayment will be credited toward the total invoice balance upon completion of the services.
Final payment settlement clause
This variation applies when final payment is required to settle all invoices.
[Party Name] agrees that the final payment must be made within [X] days of the completion of services, covering all outstanding invoices, and ensuring that no further amounts are owed under this agreement.
Invoice payment by third party clause
This variation applies when a third party is responsible for invoice payments.
[Party Name] agrees that if a third party is responsible for paying the invoice, [Other Party Name] will ensure that the third party submits payment within the agreed terms. Failure by the third party to pay will not relieve [Other Party Name] from the obligation to pay the invoice.
Invoicing for lump sum payments clause
This variation applies when lump sum payments are invoiced.
[Party Name] agrees to issue a single lump sum invoice upon completion of the agreed services. This invoice will include the total amount for the project, and payment is due within [X] days from the invoice date.
Dispute resolution for late payment clause
This variation applies when disputes regarding late payment must be resolved.
[Party Name] agrees that any disputes related to late payment penalties will be resolved through negotiation within [X] days. If unresolved, the dispute will be escalated to arbitration.
Interest on overdue invoices clause
This variation applies when interest is charged on overdue invoices.
[Party Name] agrees to charge interest on overdue invoices at a rate of [X]% per month. The interest will be applied to the total outstanding balance, starting from the first day after the due date.
Invoice summary clause
This variation applies when a summary of the invoice is provided.
[Party Name] agrees to include a summary of the total invoice amount, including a breakdown of the services or products provided, applicable taxes, and any discounts, for clarity and ease of payment processing.
Invoice adjustment for service changes clause
This variation applies when invoices are adjusted for service changes.
[Party Name] agrees that invoices will be adjusted if there are any changes in the scope of services provided. The adjustment will reflect the additional or reduced charges and will be issued in the next billing cycle.
Invoice acknowledgment clause
This variation applies when the recipient must acknowledge receipt of the invoice.
[Party Name] agrees that [Other Party Name] will acknowledge receipt of each invoice within [X] business days. If no acknowledgment is received within this period, the invoice will be considered accepted.
Invoice rejection due to incorrect information clause
This variation applies when an invoice is rejected for incorrect information.
[Party Name] agrees that [Other Party Name] may reject any invoice containing incorrect billing information, including errors in service descriptions or amounts. The rejected invoice will be returned for correction and reissuance.
Early settlement with discount clause
This variation applies when an early settlement discount is offered.
[Party Name] agrees to offer a [X]% discount for invoices paid within [X] days of receipt. This discount will be deducted from the total amount due and reflected on the invoice.
No partial payment clause
This variation applies when partial payments are not accepted.
[Party Name] agrees that no partial payments will be accepted for invoices. Full payment must be made by the due date, and failure to do so will result in penalties as outlined in this agreement.
Refundable deposit clause
This variation applies when a refundable deposit is required.
[Party Name] agrees to collect a refundable deposit of [X] dollars prior to the commencement of services. The deposit will be refunded after the final invoice is paid, provided there are no outstanding balances or damages.
Invoicing for milestone payments clause
This variation applies when invoicing is based on project milestones.
[Party Name] agrees to issue invoices upon the completion of each project milestone. Payment for each invoice will be due within [X] days of receipt, based on the completion of the corresponding milestone.
Detailed invoice format clause
This variation applies when a detailed format for invoices is required.
[Party Name] agrees to issue invoices in a detailed format, including the invoice number, date, description of services, amounts due, applicable taxes, and payment instructions. The format will be agreed upon by both parties before the first invoice is issued.
Late payment dispute clause
This variation applies when disputes regarding late payment are handled.
[Party Name] agrees to resolve any disputes regarding late payments within [X] days of notification. Both parties will negotiate in good faith to reach a resolution, and payment will be due if no resolution is reached.
Final settlement clause
This variation applies when all invoices must be settled before project completion.
[Party Name] agrees that all outstanding invoices must be settled in full prior to the final completion of the project. Any remaining balance will be invoiced as a final settlement upon project completion.
Invoice delivery to multiple addresses clause
This variation applies when invoices need to be delivered to multiple addresses.
[Party Name] agrees to send invoices to multiple designated addresses, as provided by [Other Party Name]. Each invoice will be delivered in the agreed-upon method to ensure all relevant parties receive it on time.
Invoice payment extension request clause
This variation applies when a payment extension request is allowed.
[Party Name] agrees that [Other Party Name] may request an extension of [X] days for invoice payment in the event of financial difficulties. Such requests must be submitted in writing and will be considered on a case-by-case basis.
Recurring billing agreement clause
This variation applies when recurring billing is set up for ongoing services.
[Party Name] agrees to initiate recurring billing for ongoing services. Each invoice will be issued automatically at the start of each billing cycle, and payment is due within [X] days of receipt of each invoice.
Disputed charges resolution clause
This variation applies when disputed charges must be resolved promptly.
[Party Name] agrees that any disputed charges on an invoice will be addressed within [X] days. Both parties will cooperate to resolve any discrepancies, and the invoice will be adjusted if necessary.
No interest charges for early payment clause
This variation applies when no interest is charged for early payment.
[Party Name] agrees that if payment is made before the invoice due date, no interest will be charged. The early payment will be accepted without penalty, and the total invoice amount will remain unchanged.
Credit adjustment clause
This variation applies when a credit adjustment is applied to an invoice.
[Party Name] agrees to apply a credit adjustment for any overpayments or billing errors on invoices. The credit will be reflected on the next invoice issued, or refunded to [Other Party Name] as per their preference.
Invoice error notification clause
This variation applies when invoice errors must be reported promptly.
[Party Name] agrees that any errors in the invoice, such as incorrect amounts or service descriptions, must be reported within [X] days of receipt. The error will be corrected, and a new invoice will be issued.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.