What is Invoice Price?
Invoice Price is the price of a product or service as stated on the invoice sent by a seller to a buyer. It is also referred to as the net price, as it excludes any additional charges that the buyer may incur such as taxes, freight, or delivery charges. The Invoice Price is the price that the buyer agrees to pay for the goods or services, and is the starting point for any negotiations between the buyer and the seller. It is essentially a fixed price and is usually set by the manufacturer or supplier.
What is Included in Invoice Price?
The Invoice Price typically includes:
- The cost of the product or service
- Any applicable discounts
- Any applicable taxes
- Any applicable shipping charges
- Any applicable handling fees
How is Invoice Price Calculated?
The Invoice Price is calculated by taking the cost of the product or service and adding any applicable discounts, taxes, shipping charges, and handling fees. For example, if the cost of a product is $100, and there is a 10% discount, a 5% tax, a $5 shipping charge, and a $2 handling fee, the Invoice Price would be calculated as follows:
- Cost of product: $100
- Discount: $10
- Tax: $5
- Shipping charge: $5
- Handling fee: $2
Invoice Price = $100 – $10 + $5 + $5 + $2 = $112
Conclusion
Invoice Price is the price of a product or service as stated on the invoice sent by a seller to a buyer and is the starting point for any negotiations between the buyer and the seller. The Invoice Price typically includes the cost of the product or service, any applicable discounts, taxes, shipping charges, and handling fees. It is calculated by taking the cost of the product or service and adding any applicable discounts, taxes, shipping charges, and handling fees.Sources:
- https://www.investopedia.com/terms/i/invoice-price.asp
- https://www.businessdictionary.com/definition/invoice-price.html
- https://www.thebalancesmb.com/what-is-invoice-price-158948