Invoice vs. Claim — What's the Difference?
By Tayyaba Rehman — Updated on November 7, 2023
An invoice is a bill detailing services or products provided and payment owed, while a claim is a demand for payment due to a loss covered by insurance or other agreements.
Difference Between Invoice and Claim
Table of Contents
ADVERTISEMENT
Key Differences
An invoice is a formal document sent by a seller to a buyer, listing the goods or services provided and the amount due for payment. It serves as a request for payment and records a transaction. A claim, however, is a formal request or assertion made by a party for a payment, often from an insurance company, for coverage of a loss.
Invoices are integral to the accounting process, providing detailed information on sales transactions, including dates, amounts, and taxes. Claims are not sales documents but are requests for compensation due to policy agreements or other rights, often following an event that triggers the entitlement.
The issuance of an invoice typically follows the provision of a service or delivery of goods and indicates the completion of a business transaction. Claims, on the other hand, are raised when an individual or entity seeks to collect on an insurance policy or warranty due to an incurred loss or damage.
Invoices are often expected and scheduled, part of regular business dealings, and are recognized in financial accounting. Claims can be sporadic, based on unforeseen circumstances or incidents that prompt the policyholder to seek fulfillment of a policy's terms.
While an invoice is a straightforward document requesting payment, a claim may involve negotiation and verification before settlement. The invoice is a unilateral document sent to initiate payment, whereas a claim is part of a bilateral process that may require adjudication.
ADVERTISEMENT
Comparison Chart
Definition
Document detailing a transaction requiring payment
Request for compensation or payment due to a loss
Purpose
To request payment for goods or services provided
To seek reimbursement or coverage under a policy
Issued by
Seller or service provider
Individual or entity filing for compensation
Regularity
Regularly after provision of goods/services
As needed, often after an unexpected event
Process
Part of accounting and payment collection
Part of insurance or warranty fulfillment
Compare with Definitions
Invoice
Payment request
They received an invoice for the consultancy services.
Claim
Request for payment
He filed a claim with his insurance after the accident.
Invoice
Billing statement
The monthly invoice includes a breakdown of expenses.
Claim
Demand for something due
The workers put in a claim for unpaid wages.
Invoice
Charge sheet
Upon completion, the contractor submitted the invoice.
Claim
Statement of truth
The article made a bold claim about the discovery.
Invoice
A document for payment
Please send the invoice to our finance department.
Claim
Legal entitlement
They made a claim against the faulty product warranty.
Invoice
Record of sale
The invoice listed all the items purchased.
Claim
State or assert that something is the case, typically without providing evidence or proof
‘I'm entitled to be conceited,’ he claimed
Not every employee is eligible to claim unfair dismissal
The Prime Minister claimed that he was concerned about Third World debt
Invoice
An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice.
Claim
Formally request or demand; say that one owns or has earned (something)
If no one claims the items, they will become Crown property
Invoice
A detailed list of goods shipped or services rendered, with an account of all costs; an itemized bill.
Claim
Cause the loss of (someone's life)
The attacks claimed the lives of five people
Invoice
The goods or services itemized in an invoice.
Claim
An assertion that something is true
He was dogged by the claim that he had CIA links
Invoice
To make an invoice of (goods or services).
Claim
A demand or request for something considered one's due
The court had denied their claims to asylum
Invoice
To send an invoice to; bill.
Claim
To demand, ask for, or take as one's own or one's due
Claim a reward.
Claim one's luggage at the airport carousel.
Invoice
A bill; a commercial document issued by a seller to a buyer indicating the products, quantities and agreed prices for products or services that the seller has already provided the buyer with. An invoice indicates that, unless paid in advance, payment is due by the buyer to the seller, according to the agreed terms.
Claim
To take in a violent manner as if by right
A hurricane that claimed two lives.
Invoice
The lot or set of goods as shipped or received.
The merchant receives a large invoice of goods.
Claim
To state to be true, especially when open to question; assert or maintain
Claimed he had won the race.
A candidate claiming many supporters.
Invoice
The price which a seller or dealer pays the manufacturer for goods to be sold.
Claim
To deserve or call for; require
Problems that claim her attention.
Invoice
(transitive) To bill; to issue an invoice to.
I will invoice my supplier tomorrow.
Claim
A demand for something as rightful or due.
Invoice
(transitive) To make an invoice for (goods or services).
Claim
A basis for demanding something; a title or right.
Invoice
A written account of the particulars of merchandise shipped or sent to a purchaser, consignee, factor, etc., with the value or prices and charges annexed.
Claim
Something claimed in a formal or legal manner, especially a tract of public land staked out by a miner or homesteader.
Invoice
The lot or set of goods as shipped or received; as, the merchant receives a large invoice of goods.
Claim
A demand for payment in accordance with an insurance policy or other formal arrangement.
Invoice
To make a written list or account of, as goods to be sent to a consignee; to insert in a priced list; to write or enter in an invoice.
Goods, wares, and merchandise imported from Norway, and invoiced in the current dollar of Norway.
Claim
The sum of money demanded.
Invoice
An itemized statement of money owed for goods shipped or services rendered;
He paid his bill and left
Send me an account of what I owe
Claim
A statement of something as a fact; an assertion of truth
Makes no claim to be a cure.
Invoice
Send an bill to;
She invoiced the company for her expenses
Claim
A demand of ownership made for something.
A claim of ownership
A claim of victory
Claim
The thing claimed.
Claim
The right or ground of demanding.
You don't have any claim on my time, since I'm no longer your employee.
Claim
A new statement of something one believes to be the truth, usually when the statement has yet to be verified or without valid evidence provided.
The company's share price dropped amid claims of accounting fraud.
Claim
A demand of ownership for previously unowned land.
Miners had to stake their claims during the gold rush.
Claim
(legal) A legal demand for compensation or damages.
Claim
To demand ownership of.
Claim
To state a new fact, typically without providing evidence to prove it is true.
Claim
To demand ownership or right to use for land.
Claim
(legal) To demand compensation or damages through the courts.
Claim
(intransitive) To be entitled to anything; to deduce a right or title; to have a claim.
Claim
To cause the loss of, usually by violent means.
The attacks claimed the lives of five people.
A fire claimed two homes.
Claim
(obsolete) To proclaim.
Claim
(archaic) To call or name.
Claim
To ask for, or seek to obtain, by virtue of authority, right, or supposed right; to challenge as a right; to demand as due.
Claim
To proclaim.
Claim
To call or name.
Claim
To assert; to maintain.
Claim
To be entitled to anything; to deduce a right or title; to have a claim.
We must know how the first ruler, from whom any one claims, came by his authority.
Claim
A demand of a right or supposed right; a calling on another for something due or supposed to be due; an assertion of a right or fact.
Claim
A right to claim or demand something; a title to any debt, privilege, or other thing in possession of another; also, a title to anything which another should give or concede to, or confer on, the claimant.
Claim
The thing claimed or demanded; that (as land) to which any one intends to establish a right; ; as, a settler's claim; a miner's claim.
Claim
A loud call.
Claim
An assertion of a right (as to money or property);
His claim asked for damages
Claim
An assertion that something is true or factual;
His claim that he was innocent
Evidence contradicted the government's claims
Claim
Demand for something as rightful or due;
They struck in support of their claim for a shorter work day
Claim
An informal right to something;
His claim on her attentions
His title to fame
Claim
An established or recognized right;
A strong legal claim to the property
He had no documents confirming his title to his father's estate
He staked his claim
Claim
A demand especially in the phrase
The call of duty
Claim
Assert or affirm strongly; state to be true or existing;
He claimed that he killed the burglar
Claim
Demand as being one's due or property; assert one's right or title to;
He claimed his suitcases at the airline counter
Mr. Smith claims special tax exemptions because he is a foreign resident
Claim
Ask for legally or make a legal claim to, as of debts, for example;
They claimed on the maximum allowable amount
Claim
Lay claim to; as of an idea;
She took credit for the whole idea
Claim
Take as an undesirable consequence of some event or state of affairs;
The accident claimed three lives
The hard work took its toll on her
Claim
Assert ownership
She laid claim to the estate as the closest relative.
Common Curiosities
Are invoices legally binding?
Yes, invoices are legally binding documents that outline the obligation to pay for services or products.
What does it mean to file a claim?
To file a claim means to formally request payment or compensation under an insurance policy or agreement.
Can an invoice be amended?
Yes, invoices can be amended if there are errors or changes needed.
Who typically issues a claim?
Claims are typically issued by individuals or entities seeking compensation from insurance companies or warranties.
Is a claim the same as a lawsuit?
No, a claim is a request for payment under a policy; a lawsuit is a legal action in court.
Do invoices need to be signed?
Invoices do not typically need to be signed, but they must include the seller's information.
What is the main purpose of an invoice?
The main purpose of an invoice is to request payment for goods or services provided.
What is a proof of claim?
A proof of claim is documentation that verifies the validity of a claim for payment.
How long should you keep invoices?
Businesses should keep invoices for a minimum of seven years for tax and accounting purposes.
Can anyone make a claim?
Anyone with a legitimate loss or entitlement under a policy or warranty can make a claim.
What's required to support a claim?
Documentation and proof of loss or damage are typically required to support a claim.
What is an invoice number?
An invoice number is a unique identifier for tracking and reference purposes.
Can invoices be electronic?
Yes, invoices can be electronic and are commonly sent via email.
How do you contest a claim?
To contest a claim, you must provide evidence that disputes the claim to the issuing entity.
What happens if an invoice is unpaid?
If an invoice is unpaid, it may result in late fees, collection efforts, or legal action.
Share Your Discovery
Previous Comparison
Signage vs. Signboard
Next Comparison
Sour vs. SweetAuthor Spotlight
Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
