Definition
A consolidated invoice combines several orders, deliveries, or service periods for one client into a single invoice with one total and one due date. Instead of paying many small invoices, the client approves and pays one document that lists every underlying charge, usually grouped by order, location, or date.
Also called: Summary invoice, Combined invoice
Consolidated invoice in practice
Consolidated invoicing suits clients who order frequently, such as a restaurant receiving several supplier deliveries a week or a company with many small service calls. It cuts the number of documents both sides have to process and makes payment runs simpler.
Each underlying order or delivery should still be traceable. List the original order numbers, delivery dates, or PO numbers on the lines so the client can match the consolidated invoice against their own records during approval.
Agree on the consolidation period in advance, for example weekly or monthly, and make sure the payment terms start from the consolidated invoice date rather than the date of each delivery.
Example
A janitorial supplier delivers to a client's four offices 12 times in May. Instead of 12 invoices, it sends one consolidated invoice on May 31 for $3,480, with each delivery listed by date and office.
Frequently Asked Questions
Is a consolidated invoice the same as a statement of account?
No. A consolidated invoice is a new request for payment that bills several charges at once. A statement of account summarizes invoices that have already been issued and shows the open balance.
Can a consolidated invoice cover different tax rates?
Yes. Show the tax rate on each line or group lines by rate, then total the tax separately. Tax rules still apply to each underlying supply, not just the combined total.
Related terms
- Statement of account A statement of account is a summary document that lists all invoices, payments, and credits between a seller and one client over a period, ending with the current balance owed.
- Recurring invoice A recurring invoice is an invoice that is generated automatically on a fixed schedule, such as monthly or annually, with the same client, line items, and terms each time.
- Billing cycle A billing cycle is the regular interval at which a business issues invoices for ongoing services, such as weekly, monthly, or quarterly.
- PO number A PO number is the unique identifier on a purchase order that a buyer issues before a sale.
- Batch invoicing Batch invoicing is the practice of creating and sending many invoices at once, usually on a set schedule, rather than one at a time.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.