Glossary of Terms
Interim Invoice
An interim invoice (also known as a progress billing) is a partial invoice issued for a portion of the work completed or goods delivered before the entire job is finished. See also Final Invoice.
AES256
AES256 is a strong and widely used method for securely encrypting digital information, using a highly complex key to nearly unbreakably protect data. See also End-to-End Encryption.
Estimate
An estimate (also known as a quote or quotation) is a non-binding or binding offer from a business to a potential client, outlining services, prices, and terms for a project or delivery.
Markup
A percentage or amount added to the cost price or manufacturing cost of a product to determine the selling price. A 100% markup means the product is sold at twice the cost price. See also Margin
Gross
Refers to the total amount of an invoice, goods, or salary including all taxes and fees. See also Net.
B2B
Business-to-Business: Business relationships between companies. Invoices are issued as net invoices. See also B2C and B2G.
B2C
Business-to-Consumer: Business relationships between companies and end consumers. Invoices are issued as gross invoices. See also B2B and B2G.
B2G
Business-to-Government: Business relationships between companies and public administrations or authorities. See also B2B and B2C.
DATANORM
DATANORM is a standardized data format for exchanging product and item data between manufacturers, wholesalers, and trade businesses.
Recurring Invoice
A recurring invoice for regularly provided services or deliveries, such as monthly rents, subscriptions, or service fees.
End-to-End Encryption
An encryption method where data is encrypted on the sender's device and only decrypted on the recipient's device. Not even the service provider can access the unencrypted data. See also AES256.
E-Invoice
An electronic invoice that is transmitted and processed in digital form. It is more efficient, faster, and environmentally friendly than traditional paper invoices.
IBAN
The IBAN (International Bank Account Number) is a standardized account number that enables bank accounts worldwide to be uniquely identified and facilitates cross-border transactions.
Direct Debit
A payment method in which the payee is authorized to withdraw an amount directly from the payer's bank account.
Leitweg-ID
The Leitweg-ID (routing identifier) is a unique identifier for public administrations and authorities in Germany, required for electronic invoicing (XRechnung). It enables invoices to be automatically routed to the correct department within the public administration.
Margin
The difference between the selling price and the costs for manufacturing or purchasing a product. A 50% margin means the product was purchased at half of the selling price. See also Markup
QR-Invoice
An invoice form that contains a scannable QR code encoding all relevant payment information. This facilitates the quick and error-free transfer of payment data.
Reverse-Charge
The reverse-charge mechanism (also called the shift of tax liability) is a VAT procedure where not the supplier, but the recipient of a service is liable to declare and pay the VAT to the tax authorities.
SEPA
SEPA stands for Single Euro Payments Area and enables cross-border Euro payments in Europe by creating a uniform set of rules for Euro transactions across different countries.
Final Invoice
A final invoice is a summarizing bill that presents the final costs or revenues of a project, service, or business transaction. See also Interim Invoice.
Early Payment Discount
An early payment discount (also known as cash discount or prompt payment discount) is a percentage reduction on the invoice amount granted when payment is made within a specified period. Typical payment terms are, for example, "2% discount if paid within 10 days, net 30 days".
VAT ID
The VAT identification number (VAT ID) is a unique identifier for businesses within the European Union required for cross-border transactions. It enables tax-free intra-community supplies between EU countries.