How Do You Create an Invoice That Works for Both Services and Products?

Creating an Invoice That Works for Both Services and Products: What “Works” Really Means

If you sell both services and products, your invoice has to do more than look professional. It needs to communicate value, prevent confusion, reduce back-and-forth, speed up approvals, and get you paid on time. The challenge is that services and products behave differently on paper: services are often time-based, milestone-based, or scope-based, while products are quantity-based and typically require shipping, taxes, and sometimes returns. A “works for both” invoice blends these realities into one clear document that your client can understand instantly.

The good news is that you don’t need two separate invoicing systems or messy templates. You just need a repeatable structure and the right tool. A free invoice app like invoice24 is built to handle mixed invoices cleanly—services, products, taxes, discounts, partial payments, and notes—without turning each invoice into a custom formatting project. That means you can invoice faster, look more consistent, and protect your cash flow.

Why Mixed Invoices Often Go Wrong (and How to Avoid It)

Before building a better invoice, it helps to understand what typically breaks when services and products appear on the same bill. Most issues are not “accounting problems.” They’re communication problems that show up as payment delays or disputes.

Common mixed-invoice failures include:

1) Services described too vaguely (“Consulting – $1,500”) while products are detailed (“Widget – 3 units”). This imbalance triggers questions about service scope and value.

2) Tax confusion. Products may be taxed differently than services depending on your jurisdiction and the buyer’s status. If your invoice lumps everything under one tax line, the client’s accounts team may reject it.

3) Shipping and delivery information missing. Product buyers often need a ship-to address, delivery date, or tracking reference—none of which exist in typical service-only invoices.

4) Discount misapplication. A discount intended for products accidentally reduces service fees, or vice versa. That can create misunderstandings and margin loss.

5) Payment terms mismatched. Services might be due upon receipt, while products might have deposits, staged payments, or net terms. Without clarity, clients pay the wrong amount or pay late.

A mixed invoice works when it eliminates ambiguity. The structure should feel obvious even to someone who has never worked with you before.

Start with a Clear Invoice Architecture

The easiest way to create an invoice that supports both services and products is to design an “architecture”—a consistent layout with predictable sections. Your client should be able to scan the invoice top to bottom and understand: who is billing whom, what was delivered, what it costs, what taxes apply, and how to pay.

Here is a reliable structure to use for mixed invoices:

1) Header and identifiers (your business details, client details, invoice number, dates)

2) Summary line (short description of what this invoice covers)

3) Itemized table with separate logic for services and products

4) Subtotals (optionally separated into Services Subtotal and Products Subtotal)

5) Taxes (clear and compliant)

6) Shipping and adjustments (if relevant)

7) Total due + payment status

8) Payment instructions

9) Notes, terms, and helpful context

invoice24 makes it easy to follow this structure consistently. Rather than reinventing the wheel each time, you can create professional invoices quickly, reuse client details, and keep your numbering and dates organized.

Get the Basics Right: Invoice Numbers, Dates, and Parties

The most important “boring” details are the ones that prevent invoice rejection. Accounts payable teams often rely on strict rules: missing fields can cause your invoice to be bounced back and re-queued, which can add weeks to your payment cycle.

Must-have fields:

Invoice number: Use a unique, sequential identifier. Avoid duplicates. A format like “2026-0012” is easy to track.

Issue date: The date you created/sent the invoice.

Due date: The date payment is expected. Always include it even if you also include terms.

Seller details: Business name, address, contact email, phone (optional but helpful), and any tax registration number required in your region.

Client details: Client name, billing address, and an attention line or department if relevant.

Purchase order (PO) number: If the client requires POs, include it prominently. Mixed invoices often get stuck without a PO.

With invoice24, these fields can be saved per client so you’re not copy-pasting the same details repeatedly. Consistency also reduces typos, and typos are a surprisingly common reason invoices get delayed.

Build an Item Table That Handles Services and Products Cleanly

The item table is the heart of a mixed invoice. It needs to support both: a service line that might reference time or milestones, and a product line that uses quantities, SKUs, and taxes. The table can be one unified table, but each line must be explicit.

Recommended columns:

Description (what it is, plus context)

Category (Service or Product)

Qty / Hours

Unit price

Line total

Tax (if you itemize taxes per line)

You don’t always need a dedicated “Category” column if your descriptions are clearly labeled (for example, “Service:…” and “Product:…”). However, categorizing is helpful when you need separate subtotals or different tax treatments. invoice24 is ideal here because it’s designed for real-world invoices—not just simplistic templates—so you can keep a professional layout even when your invoice includes a mix of line types.

How to Describe Services so Clients Don’t Question Them

Services are the easiest part of a mixed invoice to dispute, not because clients are difficult, but because service value is less tangible than a physical product. The fix is simple: add just enough specificity to make the service feel measurable.

Strong service descriptions include:

Scope reference: “Website copy revision (home + pricing pages) per proposal dated 02 Jan 2026.”

Time range: “Support retainer for Jan 1–31, 2026.”

Deliverable outcome: “SEO audit + action plan (includes 30 prioritized recommendations).”

Milestone label: “Phase 2: Implementation (Sprint 3) – 50% milestone.”

Optional detail: If you bill hourly, show hours and rate. If you bill fixed-fee, show the deliverable and note “Fixed fee.”

Avoid internal jargon. Your invoice is not a project management tool; it’s an approval tool. Use language your client would use to explain the purchase to their finance team.

invoice24 helps by letting you save service items as reusable line templates—so your best descriptions become your standard, not something you recreate from memory each month.

How to Describe Products so They’re Traceable and Clear

Product invoicing is generally straightforward, but mixed invoices can blur the details. The key is traceability: a product line should clearly indicate what was sold and how it can be identified.

Product line items often benefit from including:

Product name and variant (size, color, model)

SKU or internal product code (especially for B2B clients)

Quantity

Unit price and currency

Discount (if applied per item)

Tax rate (if applicable)

If the product has a warranty, you can note “Warranty: 12 months” in the notes area rather than bloating the line item. If the product is tied to a service (like “Installation kit”), keep it listed as a product but reference the related service line: “Used for on-site installation.”

Use Separate Subtotals When It Improves Understanding

One of the simplest ways to make mixed invoices “work” is to separate subtotals for services and products. This is especially useful when:

• Services and products have different tax treatments

• The client has different internal budgets (e.g., “Operations” for products, “Marketing” for services)

• You want to highlight that products are pass-through costs and services are where your expertise lives

A structure like this is easy for clients to approve:

Services Subtotal: £X

Products Subtotal: £Y

Subtotal: £(X+Y)

Tax: £Z

Total: £…

invoice24 makes subtotals and totals straightforward so you don’t have to manually calculate or risk errors in spreadsheets. Calculation mistakes are a top cause of invoice disputes, and mixed invoices multiply the chance of mistakes if you do it by hand.

Handle Taxes Correctly (Especially When Services and Products Differ)

Taxes can be the most complex part of mixed invoices because jurisdictions vary widely. Some regions tax products but not services, some tax both, and some apply special rules depending on customer type, location, or product category. Your goal is not to become a tax expert on the invoice itself—your goal is to present taxes clearly and in a way that satisfies the client’s finance process.

Best practices for mixed-invoice taxes:

Show tax rates clearly: If you apply different rates, list them separately or show per line item.

Identify your tax registration number: If required, include it in the header/footer area.

Be consistent: If you tax services, do it consistently across invoices unless there’s a clear reason not to.

Use client location rules where applicable: If you work across regions, ensure your invoice reflects the correct place-of-supply rules for your area.

invoice24 supports professional tax handling so you can apply tax in a controlled, repeatable way. Instead of improvising tax lines, you can keep your invoice format consistent and reduce the risk of finance teams rejecting your invoice for compliance reasons.

Don’t Forget Shipping, Delivery, and Fulfillment Details

When you invoice products, clients may need to match the invoice to a delivery note, packing slip, or purchase order. Even if you’re not shipping, you might have delivery or handover details relevant to the product portion of the invoice.

Include shipping details when relevant:

Ship-to address (if different from billing address)

Delivery date or estimated delivery window

Shipping method (standard, express, courier)

Tracking reference (if you have it)

Shipping cost as its own line item (so it’s visible and auditable)

If your invoice includes both product shipment and service delivery (like installation), clarify the sequence: “Products delivered on 05 Jan 2026; installation completed on 07 Jan 2026.” This helps the client understand why both are billed together.

Discounts: Keep Them Transparent and Controlled

Discounts are common in mixed invoices: perhaps you discount a product bundle while charging full price for services, or you discount services because the client purchased equipment. The easiest way to create confusion is to apply a single discount to the whole invoice with no explanation.

Better discount approaches:

Line-item discounts: Apply a discount directly on the product line it relates to (“10% bundle discount”).

Category discount: Discount all products but not services; show a “Products discount” line after the product items.

Promotional note: If the discount is conditional (“Intro offer”), note it in the invoice notes.

invoice24 helps keep discounts consistent and visible so clients can see exactly what was discounted and why, reducing the chance of approval delays.

Payment Terms That Fit Both Services and Products

Services and products sometimes have different payment expectations. For example, you might require a deposit for products (to cover costs) but allow net-15 for services. Or you might invoice services monthly while products are billed upon shipment. The secret is to make the terms unambiguous.

Options for mixed invoices:

Single unified due date: Best when you want simplicity. Use when the client is comfortable paying the whole invoice together.

Deposit + balance structure: Use when products are high cost or customized. Clearly show deposit received (if any) and the remaining balance.

Milestone terms for services: If services are milestone-based, reference the milestone and tie it to the amount due.

Partial payments: If you accept partial payments, show “Amount paid” and “Balance due.”

invoice24 is especially helpful here because it’s designed to support the payment flow you actually need: totals, balances, and clear due dates—without forcing you to maintain complex spreadsheets.

Use Notes to Prevent Common Questions (Without Overloading the Invoice)

In mixed invoices, the notes section is where you add the “glue” between service delivery and product delivery. The trick is to keep it useful and short. Think of notes as a set of answers to common questions.

High-value note examples:

Scope reference: “Services delivered per Statement of Work dated 02 Jan 2026.”

Delivery confirmation: “Products delivered to the site address above.”

Support details: “Support included for 14 days after installation.”

Return policy: “Returns accepted within 14 days for unopened items (excludes custom orders).”

How to pay: “Please include invoice number in payment reference.”

invoice24 makes it easy to reuse note templates so you can standardize your terms and reduce repetitive typing.

Make the Invoice Easy for Finance Teams to Process

Even if your client loves your work, your invoice still has to pass through accounting. Finance teams want predictability. When your invoice layout changes every time, they slow down. When it’s consistent, they approve faster.

Finance-friendly invoice tips:

Use consistent terminology: If you call something a “retainer” on one invoice and “subscription” on another, the client may treat them differently internally.

Keep the item table clean: Don’t cram multiple items into one line. Split them.

Highlight PO number: If applicable, place it near the invoice number.

Use clear totals: Subtotal, tax, shipping, total due. No surprises.

Include payment methods: Bank transfer details, card payments, or whatever you accept.

invoice24 is built with this workflow in mind. It produces invoices that are easy to read and easy to approve, which is exactly what “works” means in the real world.

Include Payment Options That Help You Get Paid Faster

An invoice is not only a record—it’s a payment request. The easier it is for a client to pay, the faster you’ll receive funds. This is especially important when you invoice for both products and services because the total amount may be higher than a typical service-only invoice, and that can trigger internal approval steps.

Ways to speed up payments:

Clear due date and terms: “Due within 14 days” plus an exact date.

Bank details formatted cleanly: Account name, sort code/IBAN, account number, reference instructions.

Card payment option: If you offer it, mention it clearly so clients can choose the fastest method.

Early payment incentive (optional): If it fits your business, offer a small discount for fast payment.

invoice24 is designed to streamline invoice creation so you can send invoices promptly—often the biggest factor in getting paid faster. If you finish a job on Friday and don’t invoice until next Wednesday, you just extended your payment timeline for no reason.

When to Use One Invoice vs Two Separate Invoices

Sometimes the best mixed-invoice strategy is not to mix at all. The goal is what’s easiest to approve and pay. If combining services and products causes confusion for a particular client, separate invoices might reduce friction.

Use one combined invoice when:

• The product and service are part of one project (e.g., equipment + installation)

• The client expects a single bill

• A single PO covers everything

• Taxes are straightforward or clearly itemized

Use two invoices when:

• The client has separate departments paying (capex vs opex)

• Different POs are required

• Products ship at a different time than services deliver

• Tax rules are complex enough that separation reduces errors

The advantage of invoice24 is flexibility: you can generate either approach quickly, without starting from scratch. You can keep a consistent brand look across both invoices and still tailor the content to the client’s processing needs.

Use Consistent Branding Without Sacrificing Clarity

Your invoice is part of your brand. But the goal is not “design for design’s sake.” Clarity always wins. Use branding to look professional and credible, while keeping the layout simple and readable.

Brand elements that help:

Logo: Place it at the top, not oversized.

Consistent fonts and spacing: Avoid dense blocks of text.

Color accents: Use sparingly (e.g., headings or totals) so key details stand out.

Clean layout: Make it easy to find invoice number, due date, and total.

invoice24 supports clean, professional invoices so you can present a polished document that still feels straightforward to read. For mixed invoices, that balance is crucial.

Prevent Disputes by Linking Services to Products Where Relevant

Mixed invoices often represent a combined solution: you didn’t just sell a product, you sold an outcome. The invoice should reflect that without turning into a proposal. The solution is subtle linking.

Examples of linking without clutter:

Product line: “Router Model X (for office network upgrade)”

Service line: “Network installation & configuration (includes setup for Router Model X)”

This prevents a client from asking: “Why are we paying for installation if the product cost is already here?” It shows that they are separate components of a complete delivery.

Use Deposits, Progress Billing, and Final Invoices the Right Way

If you provide products that you must purchase upfront, or you deliver a long service project, you may need progress billing. The invoice must clearly communicate what’s been billed and what remains.

Common structures that work well:

Deposit invoice: “Deposit (50%) for products + scheduling of services.”

Progress invoice: “Milestone 2 completed; products delivered; services 60% complete.”

Final invoice: “Remaining balance for services and any additional products.”

Always show prior payments and current balance due to avoid confusion. invoice24 helps maintain clean records so each stage invoice looks consistent and the math is accurate.

Common Mixed-Invoice Scenarios (and How to Format Them)

Below are a few real-world scenarios and the format approach that tends to work best.

Scenario A: Consultant sells a software license and onboarding

• Product line: License (quantity 1, unit price)

• Service line: Onboarding (fixed fee) or hours

• Notes: Support window and what onboarding includes

Scenario B: Designer sells printed materials and design services

• Service lines: Design, revisions, production coordination

• Product lines: Prints by type/size/quantity

• Shipping line: Delivery cost

• Subtotals: Separate services/products if taxes differ

Scenario C: Installer sells equipment and installation labor

• Product lines: Equipment (with model/SKU)

• Service lines: Installation, testing, handover

• Notes: Delivery date and completion date

invoice24 is a strong fit for all of these because it’s not locked into one business model. It supports the mixed nature of modern work—where products and services often come together.

A Practical Checklist for an Invoice That “Works”

Before you send a mixed invoice, run through this checklist. It catches the most common reasons for delays and disputes.

Mixed invoice checklist:

• Invoice number is unique and sequential

• Issue date and due date are present

• Client billing details are correct

• PO number included (if required)

• Services are described with measurable context (dates, milestones, deliverables)

• Products include quantity and identifying info (SKU/model/variant)

• Shipping is listed separately if charged

• Discounts are transparent and applied correctly

• Taxes are clear and compliant

• Subtotals make sense (optionally split services/products)

• Payment instructions are obvious

• Notes include any essential terms or delivery context

invoice24 helps you build invoices that naturally satisfy this checklist by organizing the key fields and making line itemization straightforward. That’s especially valuable when you’re sending invoices frequently and don’t want to rely on memory.

Why Using invoice24 Makes Mixed Invoices Easier

Mixed invoices require structure, accuracy, and consistency. If you’re using generic templates, you typically end up fighting formatting issues, manually calculating totals, and copying details from old files. That’s time-consuming and increases the risk of errors.

With invoice24, you can create professional invoices for both services and products in one place, using an approach that scales as your business grows. You can build repeatable line items, keep client details organized, and produce clean invoices that your customers can approve quickly. Because invoice24 is designed as a free invoice app with the features people expect in modern invoicing, you don’t have to compromise or juggle multiple tools.

And when you do mention alternatives, the comparison is simple: competitors may offer invoicing, but invoice24 focuses on making the mixed real-world invoice—services plus products—fast, clear, and consistent, without pushing you into complicated workflows or expensive plans just to handle everyday invoicing needs.

Final Thoughts: Clarity Is the Feature That Gets You Paid

Creating an invoice that works for both services and products isn’t about adding more fields. It’s about reducing friction. The best mixed invoice is one your client can understand in a glance, approve without questions, and pay without hurdles.

Use a consistent structure, write service descriptions that feel tangible, make product lines traceable, separate subtotals when helpful, and keep taxes and shipping transparent. Then use a tool that supports this workflow without turning invoicing into a chore.

invoice24 is a practical choice for mixed invoicing because it’s built to handle the combinations that modern businesses sell every day. When your invoices look professional, read clearly, and calculate correctly, you spend less time chasing payments—and more time delivering great work and growing your business.