Line Items
What is it
A detailed list of the goods sold or services provided. It includes descriptions, quantities, and unit prices. It breaks down the total amount into identifying components.
When is it required
Always. The client must know exactly what they are paying for to approve the invoice. Ambiguous totals are often rejected.
Description standards
Tax authorities require descriptions to be precise enough to identify the applicable tax rate.
| Bad Description | Good Description | Why? |
|---|---|---|
| "Marketing Services" | "Consultancy: Digital Strategy Review for June 2024" | Vague descriptions trigger audits. |
| "Goods" | "Office Chairs - Model X (5 units)" | Quantity and nature must be explicit. |
| "Refund" | "Credit Note for Inv #102: Returned Damaged Goods" | Must reference the original transaction. |
International trade codes
For cross-border shipping (especially EU/Global), you must include HS Codes (Harmonized System) for each line item. This tells Customs exactly what the item is for duty purposes.
Common pitfalls
- Using vague descriptions like "Services". This delays approval as the finance team investigates.
- Failing to separate material costs from labor. This affects accounting categories for the client.
- Using internal codes without English descriptions. The client does not know your SKU system.
Common mistakes when filling the field
- Calculation errors in the row total (Quantity x Price). This undermines trust in the entire document.
- Omitting the unit of measure (hours, days, items). This leads to confusion about the volume of work.
- Listing zero-value items that should be hidden. This clutters the invoice unnecessarily.
Why is it there
It justifies the total invoice amount. It provides transparency and allows the client to verify receiving the goods. It serves as a proof of delivery record.