What is an Open Invoice?

An open invoice, sometimes called an outstanding invoice, is a billing document that a seller issues to a buyer for delivered goods or services that have not yet been paid for. It indicates that payment is still pending. While understanding what an open invoice is forms the basis, managing open invoices effectively comprehensive cash flow management and awareness of legal considerations. The practices for handling open invoices can vary significantly depending on a company’s policies and the specific terms of business transactions.