invoice-template

name	invoice-template
description	Generates professional invoice documents with line items, tax calculations, payment terms, and late payment policies, plus a reusable template for future invoices. Use when a user needs to create an invoice, set up a billing system, or standardize their invoicing process as a freelancer or small business owner.
allowed-tools	Read Write Glob
metadata	{"author":"matthewhitcham","version":"1.0"}

Invoice Template

When to Use This Skill

Use this skill when you need to:

• Generate a professional invoice for a completed project, milestone, or retainer period
• Set up a reusable invoice template with your business details baked in
• Calculate line items, taxes, discounts, and totals for a client billing document
• Standardize your invoicing process so every invoice looks consistent
• Create a billing system from scratch as a freelancer, consultant, or small business owner

DO NOT use this skill for:

• Accounting or bookkeeping (this generates documents, not payment tracking)
• Recurring subscription billing automation (static documents, not payment processing)
• Expense reports or purchase orders (different document format)
• Tax filing or tax advisory (consult an accountant for tax compliance)

---

Quick Reference: Invoice Capabilities

Feature	Details
Invoice fields	13 standard fields per invoice
Payment terms	4 presets (Net 15, Net 30, Due on Receipt, 50/50 Split)
Tax handling	Percentage-based, multi-rate, or tax-exempt
Line item types	Hourly, fixed, quantity-based, and milestone
Output format	Markdown document saved as .md file
Reusable template	Variable-based template with {{PLACEHOLDER}} syntax
Late fee policies	3 presets (percentage, flat, tiered)

Quick Reference: Invoice Fields

Field	Required	Example
Invoice Number	Yes	INV-2025-001
Invoice Date	Yes	January 15, 2025
Due Date	Yes	February 14, 2025
From (Your Business)	Yes	Acme Design LLC, 123 Main St, Chicago IL 60601
Bill To (Client)	Yes	Sarah Chen, Bright Solutions Inc.
Line Items	Yes	Web design - Homepage, 1, $2,500.00
Subtotal	Auto	$5,000.00
Discount	No	10% ($500.00)
Tax Rate	No	8.25%
Tax Amount	Auto	$371.25
Total	Auto	$4,871.25 (subtotal - discount + tax)
Payment Terms	Yes	Net 30
Late Fee Policy	Yes	1.5% per month on unpaid balance
Payment Methods	Yes	Bank transfer, PayPal, check
Notes	No	Thank you for your business!

Quick Reference: Payment Terms

Term	Meaning	Best For
Due on Receipt	Payment due immediately	Small jobs under $500, one-time services
Net 15	Due 15 days from invoice date	Ongoing freelance work, trusted clients
Net 30	Due 30 days from invoice date	Standard B2B, retainers
50/50 Split	50% upfront, 50% on completion	Large projects over $2,500, new clients

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

Quick Reference: Tax Rates

Scenario	Rate	Notes
Tax-exempt	0%	Below revenue threshold, exempt services, or digital B2B
US state sales tax	4% - 10.25%	Physical goods, some services depending on state
US general estimate	7.5%	Placeholder when user is unsure; advise accountant confirmation
Canadian GST	5%	Goods and services in Canada
Canadian HST (Ontario)	13%	Goods and services in Ontario
UK VAT	20%	Goods and services in the UK
EU VAT	19% - 27%	Goods and services in the EU
Australian GST	10%	Goods and services in Australia

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

Quick Reference: Late Fee Policies

Policy	Structure	Example Language
Percentage	Fixed % monthly on unpaid balance	"1.5% per month on any unpaid balance after the due date."
Flat fee	Fixed amount after grace period	"$25.00 late fee if not received within 7 days of due date."
Tiered	Escalating penalties	"1-15 days late: $25. 16-30 days: $50. Over 30 days: 1.5% monthly."

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, [e-mail]. 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 ([e-mail]) 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
[e-mail]

## Bill To

**Marcus Rivera**
Rivera Consulting
220 Pine Road
Denver, CO 80202
[e-mail]

---

## 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:** [e-mail]

---

## 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, [e-mail]. 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 ([e-mail]) 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
[e-mail]

## Bill To

**Tanya Okafor**
Okafor & Partners
88 Broad Street
New York, NY 10004
[e-mail]

---

## 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:** [e-mail]
- **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.

Check	What to Verify
Math correct	Every line item = qty x rate; subtotal = sum of lines; tax on post-discount amount; total = subtotal - discount + tax
All required fields filled	Invoice #, dates, from, bill to, line items, subtotal, total, terms, late fee, payment methods
Invoice number unique	No duplicate in the directory (check with Glob)
Due date matches terms	Net 15 = +15 days, Net 30 = +30 days from invoice date
Payment instructions clear	Client knows exactly how to pay with account details
Late fee policy stated	Explicit percentage/amount and when it applies
Business details accurate	Name, address, email match user input
Client details accurate	Name, company, address, email match user input
Line items descriptive	Each item clearly describes the work being billed
Currency consistent	All amounts use same format ($X,XXX.XX)
File saved	Write tool confirmed successful
Template created	Reusable template saved with variables

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