What does 'invoicing' in contract management involve?

Invoicing in contract management primarily involves the billing process for goods or services that have been delivered. This includes creating and sending invoices to clients or customers, detailing the products or services rendered, the amounts owed, and terms for payment. It serves as a formal request for payment and often includes information such as quantities, unit prices, and the total amount due.

This function is critical in contract management because it ensures that transactions are documented and payments are tracked, ultimately supporting the financial aspects of a contract. Proper invoicing helps maintain cash flow and establish clear records for both parties involved in the contract, which is vital for financial accountability and legal compliance.

Understanding invoicing is essential because it plays a key role in maintaining the relationship between the contracting parties, ensuring expectations are met, and managing financial operations effectively.