Invoice Template

Quick Reference: Invoice Fields

Quick Reference: Payment Terms

DEFAULT: Net 30 -- most common standard for freelancers and small businesses.

Quick Reference: Tax Rates

TAX RATES ARE FOR REFERENCE ONLY. Always advise the user to confirm with a qualified accountant.

Quick Reference: Late Fee Policies

DEFAULT: 1.5% per month -- professional, enforceable, industry standard.

Core Workflow

EVERY INVOICE STARTS BY GATHERING THE USER'S BUSINESS DETAILS BEFORE ANY LINE ITEMS -- NEVER GENERATE AN INVOICE WITHOUT KNOWING WHO IT IS FROM.

Step 1: Gather Business Details

Collect once -- the reusable template stores these for future invoices.

1. Business name -- legal name or DBA
2. Business address -- street, city, state/province, postal code, country
3. Contact email -- for invoice correspondence
4. Contact phone -- optional
5. Payment methods -- bank transfer, PayPal, Venmo, Stripe, check, Zelle
6. Payment details -- bank name and last 4 digits, PayPal email, Venmo handle
7. Default payment terms -- default: Net 30
8. Default late fee policy -- default: 1.5% per month
9. Invoice numbering format -- default: INV-YYYY-NNN
10. Tax status -- rate or exempt; default: tax-exempt unless specified

If the user provides items 1-2 and 5-6, proceed with defaults for the rest.

Brief template for vague requests:

I'll create your invoice. Quick details needed:

1. Your business name?
2. Your business address?
3. Contact email for the invoice?
4. How can clients pay you? (bank transfer, PayPal, Venmo, check, etc.)
5. Account details for payment (PayPal email, bank name, Venmo handle)?
6. Preferred payment terms? (default: Net 30)
7. Do you charge tax? If so, what rate?

IF THE USER HAS AN EXISTING TEMPLATE: Read it with Read, extract business details, confirm they are current.

Step 2: Gather Invoice Details

1. Client name -- person or company being billed
2. Client company -- if different from contact name
3. Client address -- mailing address
4. Client email -- where to send the invoice
5. Line items -- description, quantity/hours, unit rate for each
6. Discount -- percentage or flat amount; default: none
7. Tax rate -- business default or override
8. Payment terms -- business default or override
9. Invoice number -- next in sequence or user-specified
10. Notes -- project reference, thank-you, scope notes

If the user provides items 1 and 5, proceed with defaults for the rest.

Step 3: Generate the Invoice

1. Calculate all amounts:

   • Line item total = quantity x rate
   • Subtotal = sum of all line item totals
   • Discount = percentage or flat amount off subtotal
   • Taxable amount = subtotal - discount
   • Tax = taxable amount x tax rate
   • Total = taxable amount + tax

2. VERIFY MATH BEFORE WRITING THE FILE:

   • Recalculate each value independently
   • ALL AMOUNTS MUST MATCH TO THE CENT -- FIX ANY DISCREPANCY BEFORE PROCEEDING

3. Generate the markdown invoice with this structure: header (invoice #, dates), From section (business details), Bill To section (client details), Services table (line items with #, description, qty, rate, amount), Summary table (subtotal, discount, tax, total), Payment Terms (due date, late fee policy), Payment Methods (each method with details), Notes

4. Save as {invoice-number}.md in the user's working directory or specified location

5. Present to the user for review before finalizing

Step 4: Create the Reusable Template

After the first invoice, create a template with {{PLACEHOLDER}} variables for invoice-specific values while keeping business details hardcoded.

Template variables: {{INVOICE_NUMBER}}, {{INVOICE_DATE}}, {{DUE_DATE}}, {{CLIENT_NAME}}, {{CLIENT_COMPANY}}, {{CLIENT_ADDRESS}}, {{CLIENT_EMAIL}}, {{LINE_ITEMS}}, {{SUBTOTAL}}, {{DISCOUNT_PERCENT}}, {{DISCOUNT_AMOUNT}}, {{TAXABLE_AMOUNT}}, {{TAX_RATE}}, {{TAX_AMOUNT}}, {{TOTAL_DUE}}, {{NOTES}}

Save as invoice-template.md in the same directory. Present usage instructions to the user.

Example 1: Freelance Web Design Invoice ($5,000 project, 3 line items)

User request: "Invoice for a web design project. Business: Pixel Forge Studio, 890 Elm Street, Austin TX 78701, [email protected]. Client: Marcus Rivera, Rivera Consulting, 220 Pine Road, Denver CO 80202. Three items: homepage redesign $2,500, blog template $1,500, SEO audit $1,000. 8.25% tax. PayPal ([email protected]) and bank transfer (Chase, ending 7832). Net 30. Invoice INV-2025-001."

Math verification:

• Line 1: 1 x $2,500.00 = $2,500.00
• Line 2: 1 x $1,500.00 = $1,500.00
• Line 3: 1 x $1,000.00 = $1,000.00
• Subtotal: $5,000.00
• Tax: $5,000.00 x 0.0825 = $412.50
• Total: $5,412.50

Generated invoice (INV-2025-001.md):

# INVOICE

---

**Invoice Number:** INV-2025-001
**Invoice Date:** January 20, 2025
**Due Date:** February 19, 2025

---

## From

**Pixel Forge Studio**
890 Elm Street
Austin, TX 78701
[email protected]

## Bill To

**Marcus Rivera**
Rivera Consulting
220 Pine Road
Denver, CO 80202
[email protected]

---

## Services

| # | Description | Qty | Rate | Amount |
|---|-------------|-----|------|--------|
| 1 | Homepage redesign | 1 | $2,500.00 | $2,500.00 |
| 2 | Blog template design and development | 1 | $1,500.00 | $1,500.00 |
| 3 | SEO audit and recommendations report | 1 | $1,000.00 | $1,000.00 |

---

## Summary

| | |
|---|---|
| **Subtotal** | $5,000.00 |
| **Tax (8.25%)** | $412.50 |
| **Total Due** | **$5,412.50** |

---

## Payment Terms

**Due Date:** February 19, 2025 (Net 30)

**Late Fee Policy:** A late fee of 1.5% per month will be applied to any unpaid balance after the due date.

## Payment Methods

- **Bank Transfer:** Chase Bank, Account ending in 7832
- **PayPal:** [email protected]

---

## Notes

Thank you for choosing Pixel Forge Studio! This invoice covers the complete website redesign project.

---

*Generated by Pixel Forge Studio*

Delivered: Invoice saved, template created with Pixel Forge details embedded, next invoice number INV-2025-002.

Example 2: Monthly Retainer Invoice ($2,500/month consulting)

User request: "Retainer invoice. Business: JP Consulting (Jade Park), 1400 Market St Suite 200, Philadelphia PA 19103, [email protected]. Client: Tanya Okafor, Okafor & Partners, 88 Broad St, New York NY 10004. Monthly retainer $2,500 for strategic consulting, January. No tax (under threshold). Zelle ([email protected]) and check. Net 15. Invoice RET-2025-01."

Math verification:

• Line 1: 1 month x $2,500.00 = $2,500.00
• Subtotal: $2,500.00
• Tax: Exempt
• Total: $2,500.00

Generated invoice (RET-2025-01.md):

# INVOICE

---

**Invoice Number:** RET-2025-01
**Invoice Date:** February 1, 2025
**Due Date:** February 16, 2025

---

## From

**JP Consulting**
Jade Park
1400 Market Street, Suite 200
Philadelphia, PA 19103
[email protected]

## Bill To

**Tanya Okafor**
Okafor & Partners
88 Broad Street
New York, NY 10004
[email protected]

---

## Services

| # | Description | Qty | Rate | Amount |
|---|-------------|-----|------|--------|
| 1 | Strategic consulting retainer -- January 2025 | 1 month | $2,500.00 | $2,500.00 |

---

## Summary

| | |
|---|---|
| **Subtotal** | $2,500.00 |
| **Tax** | Exempt |
| **Total Due** | **$2,500.00** |

---

## Payment Terms

**Due Date:** February 16, 2025 (Net 15)

**Late Fee Policy:** A late fee of 1.5% per month will be applied to any unpaid balance after the due date.

## Payment Methods

- **Zelle:** [email protected]
- **Check:** Make payable to "JP Consulting" and mail to the address above

---

## Notes

Monthly retainer invoice for January 2025 strategic consulting services. Thank you for the continued partnership, Tanya!

---

*Generated by JP Consulting*

Delivered: Invoice saved, template created with JP Consulting details embedded. For next month: "invoice Tanya for February" generates RET-2025-02 automatically.

Pre-Delivery Checklist

Run this before delivering any invoice. DO NOT SKIP ANY ITEM.

Pre-Delivery Checklist:
  [x] Math verified -- all calculations correct to the cent
  [x] All required fields filled
  [x] Invoice number unique
  [x] Due date matches payment terms
  [x] Payment instructions clear and complete
  [x] Late fee policy stated
  [x] Business and client details accurate
  [x] Line item descriptions clear
  [x] Currency formatting consistent
  [x] File saved successfully
  [x] Reusable template created

Recovery and Troubleshooting

User Does Not Know Their Tax Rate

1. Ask what state/province/country and whether they sell services or goods
2. Provide the reference range from the tax table as guidance
3. Default to 0% and add a note: "Tax not included. Consult your accountant for applicable tax obligations."
4. Offer to update and recalculate once they confirm the rate

Math Does Not Balance

1. Identify the incorrect calculation
2. Recalculate from raw inputs (qty x rate for each line)
3. Rebuild the summary with corrected values
4. Re-verify before saving
5. NEVER deliver an invoice with incorrect math

User Wants to Modify an Existing Invoice

1. Read the existing file with Read
2. Make changes and recalculate all affected amounts
3. Save (overwrite or new version)
4. Run the full pre-delivery checklist
5. If the invoice number changes, save as a new file -- never reuse an old number

Existing Template Found

1. Read the existing invoice-template.md with Read
2. Extract business details
3. Confirm with the user: "I found your template with [Business Name]. Use these details, or have they changed?"
4. Skip Step 1 if confirmed

User Provides Incomplete Line Items

1. List what is missing per item:

   "Website redesign" -- need quantity and rate
   "Logo design, $500" -- flat fee for 1 unit?
   "Consulting, 10 hours" -- need hourly rate
   

2. Ask the user to fill gaps before generating
3. NEVER assume a rate or quantity
4. If 3 clarification rounds fail, generate with known items and flag incomplete ones

User Wants a Different Format

1. Generate the markdown version first (canonical output)
2. Inform: "To convert to PDF, use a markdown-to-PDF tool or paste into a document editor."
3. Reformat to CSV or plain text if requested
4. Markdown is always the primary output

Anti-Patterns

• DO NOT generate an invoice without verifying math -- every amount must be independently confirmed
• DO NOT assume tax rates -- ask or default to 0% with a disclaimer
• DO NOT fabricate payment account details -- only include what the user provides
• DO NOT reuse invoice numbers -- every invoice needs a unique identifier
• DO NOT skip the late fee policy -- every invoice needs consequences for late payment
• DO NOT deliver without presenting the invoice to the user for review first
• DO NOT provide tax or legal advice -- this generates documents, not professional counsel
• DO NOT include full account numbers -- use last 4 digits for bank accounts