# Invoices vs. Reimbursements When submitting an expense to Open Source Collective (OSC), it’s important to understand the key differences between an **invoice** and a **reimbursement**. These terms may be used differently depending on where you’re located, but they serve different purposes and must be submitted correctly. We know this page includes a lot of information, and we’ve found it helpful to keep both expense types in one place for easy comparison. To make it easier to find what you need: * **Purple headings = Invoices** * **Orange headings = Reimbursements** ## **TL;DR: What's the Difference?**

Expense Type	Use When	Key Requirements
Invoice	You're requesting payment for work/services you did	Detailed description of the work provided Timeframe that you completed the work BONUS: links that support the work completed
Reimbursement	You've already paid out-of-pocket for a project expense	Receipt from vendor Amount equal to or lower what was spent

{% hint style="warning" %} **Note**: In addition to the key requirements listed above, OSC has broader expense policies that apply to all expense submissions. [**Before submitting an expense, please review our Expense Policy and Limitations page as well.** ](https://docs.oscollective.org/for-hosted-member-projects/spending-money-and-getting-paid/expense-policies-and-limitations) {% endhint %} *** ## **Invoices** ### **When to Use** Submit an [invoice](https://docs.opencollective.com/help/expenses-and-getting-paid/submitting-expenses#invoices) when you're requesting payment for **work or services provided** to the hosted member project. ### What to Include 1. Clear description of what you did 2. When you did it 3. How it supported the project Explain what you did in clear, specific terms, and when you did it. Write it as if you're describing the work to someone who doesn't know the project. Tell us when you performed the work or service. ### **Why this Matters:** Our accountants and potential auditors may use this information to verify that funds are being used appropriately. Your description should clearly explain how and when you supported open source. *** ### **Examples of**** *****Acceptable***** ****Descriptions:** 1. "Fixed critical security bugs in February 2024" 2. "Maintenance on project infrastructure, March 1-7, 2025" ### **Don't:** * Use vague or generic terms without specificity (e.g.: "work", "services", "payment") * Use terms like "grant", "donation", "reward" — those words imply that work wasn't necessary done. ### **Examples of**** *****Unacceptable***** ****Descriptions:** * "Work done on the project" * "Payment for involvement" * "Donation for service" {% hint style="warning" %} :sparkles:**TIP: Include Links** To speed up payment processing and improve transparency, consider including relevant links that support the expense (especially important when you're a sole maintainer/admin): * Changelogs * Repositories * Blog posts * GitHub commits {% endhint %} *** ### Invoice Attachments * A PDF invoice is **not** required by OSC, but may be required by some hosted member projects * If including, it needs to be addressed to: > Open Source Collective > > 440 N. Barranca Ave. #3939 > > Covina, CA 91723 ### For Invoices Over $5,000 USD: * The payee shouldn't approve their own expense (unless they are the sole admin) * Payments must be made via electronic bank transfer, not PayPal. *** ## Reimbursements ### When to Use Submit a [reimbursement](https://docs.opencollective.com/help/expenses-and-getting-paid/submitting-expenses#reimbursements) when you've already paid for something that directly supports the project (such as, but not limited to: web hosting, swag, domain renewals, etc) using your own money. ### What to Include 1. **Receipt or approved proof of payment showing:** 1. **Vendor** (who or what company you paid) 2. **Purchase description** (what you bought) 3. **Transaction date** (when the purchase was made) 4. **Amount paid** 5. **Project name or payee's name** (who made the purchase) ### Why OSC is responsible for ensuring all funds are used to support open source. Reimbursements must show how it directly benefits the project. *** ### Reimbursement Guidelines * The amount and currency must match the receipt. We can't reimburse you for money you didn't spend. * The required information listed above must be clear and legible in the updated receipt. * If it's not obvious, the expense should include a short explanation of how the purchase supported the project. * Reimbursements for personal expenses (such as personal subscriptions, travel unrelated to the project, or groceries) are not allowed. ### Paying For Large Expenses That Can't Be Covered Out-of-Pocket and Reimbursed Later For large expenses that you cannot pay out-of-pocket, you can have your vendors and service providers submit invoices directly via your collective's page, or you can use the "[invite expense](https://docs.opencollective.com/help/expenses-and-getting-paid/submitting-expenses#inviting-a-third-party-to-submit-an-expense)" option, where you fill in the details and they receive an email and then just need to confirm. Vendors can invoice OSC through your page to get paid, and then we pay them directly. *** ## **Example Scenarios** ### *Scenario 1: Submitting an Invoice* A developer contributes a security patch for a project that OSC hosts. The developer got approval from a project admin to submit an expense for her contribution. 1. **Completing the work** 1. The developer fixes security bugs in the project and tracks her time. In total, it took around 2 hours in December 2024. 2. **Submitting the expense** 1. She submits an invoice on the project's Open Collective page with 1. **Expense type:** Invoice 2. **Description:** Fixed critical security bugs, 4 hours in December 2024" 3. **Total amount requested:** Pre-agreed amount with project maintainer 4. **Payment method:** She chooses bank transfer ### *An invoice for this scenario could look something like this:*

Good: descriptive title, described what work was done, timeframe, filed as 'invoice'

*** ### *Scenario 2: Submitting a Reimbursement* A project maintainer is attending a conference on behalf of the project and books a flight and hotel with pre-approved expenses. 1. **Getting approval** 1. Confirms with the project admins his expenses can be reimbursed 2. **Book travel** 1. Saves all receipts after booking 3. **Submitting the expense** 1. **Expense type:** Reimbursement 2. **Description:** "Travel expenses to attend \[conference name]" 3. **Attachment:** Receipt from hotel and airline showing that purchase was already paid 4. **Total amount requested:** Preapproved amount 5. **Payment method:** PayPal ### *A reimbursement for this scenario could look something like this*

Good: Descriptive title, receipts attached on separate lines, filed as 'reimbursement'

*** ## More Examples of Real Expenses ### *Invoices* You can include the details of the work done in the description field of each line item.

Bug bounties can include a link to the fix. Links are very helpful.

Including versions and project names is very helpful.

You can create one invoice for the total and attach your own invoice or time tracker to detail the work done. You do not need to attach your own invoice or time tracker for OSC, unless your project requires it. Another thing you could do is note something like: "Maintenance on core for the month of April, 2023." ### *Reimbursements*

If your expense has multiple receipts, use separate line items for each receipt

*** ## Reminder In addition to the key requirements listed above, OSC has broader expense policies that apply to all expense submissions. :point\_right: [**Before submitting an expense, please review our Expense Policy and Limitations page as well.** ](https://docs.oscollective.org/for-hosted-member-projects/spending-money-and-getting-paid/expense-policies-and-limitations)