diff --git a/pages/api/invoices/index.ts b/pages/api/invoices/index.ts
new file mode 100644
index 000000000..64c2f9743
--- /dev/null
+++ b/pages/api/invoices/index.ts
@@ -0,0 +1,32 @@
+import { setSession } from 'utils/setSession'
+import { parseCreateInvoicePOSTRequest } from 'utils/validators'
+import { RESPONSE_MESSAGES } from 'constants/index'
+import { createInvoice } from 'services/invoiceService'
+
+export default async (
+  req: any,
+  res: any
+): Promise<void> => {
+  await setSession(req, res, true)
+  const session = req.session
+  if (req.method === 'POST') {
+    try {
+      const parsedValues = parseCreateInvoicePOSTRequest({
+        ...req.body,
+        userId: session.userId
+      })
+      const invoice = await createInvoice(parsedValues)
+      res.status(200).json({
+        invoice
+      })
+    } catch (err: any) {
+      switch (err.message) {
+        case RESPONSE_MESSAGES.USER_ID_NOT_PROVIDED_400.message:
+          res.status(400).json(RESPONSE_MESSAGES.USER_ID_NOT_PROVIDED_400)
+          break
+        default:
+          res.status(500).json({ statusCode: 500, message: err.message })
+      }
+    }
+  }
+}
diff --git a/prisma/migrations/20250512173910_add_invoice/migration.sql b/prisma/migrations/20250512173910_add_invoice/migration.sql
new file mode 100644
index 000000000..aa6afcb51
--- /dev/null
+++ b/prisma/migrations/20250512173910_add_invoice/migration.sql
@@ -0,0 +1,24 @@
+-- CreateTable
+CREATE TABLE `Invoice` (
+    `id` VARCHAR(191) NOT NULL,
+    `userId` VARCHAR(191) NOT NULL,
+    `invoiceNumber` VARCHAR(191) NOT NULL,
+    `transactionId` VARCHAR(191) NOT NULL,
+    `amount` DECIMAL(65, 30) NOT NULL,
+    `description` VARCHAR(191) NOT NULL,
+    `recipientName` VARCHAR(191) NOT NULL,
+    `recipientAddress` VARCHAR(191) NOT NULL,
+    `customerName` VARCHAR(191) NOT NULL,
+    `customerAddress` VARCHAR(191) NOT NULL,
+    `createdAt` DATETIME(3) NOT NULL DEFAULT CURRENT_TIMESTAMP(3),
+    `updatedAt` DATETIME(3) NOT NULL,
+
+    UNIQUE INDEX `Invoice_invoiceNumber_userId_unique_constraint`(`invoiceNumber`, `userId`),
+    PRIMARY KEY (`id`, `userId`)
+) DEFAULT CHARACTER SET utf8mb4 COLLATE utf8mb4_unicode_ci;
+
+-- AddForeignKey
+ALTER TABLE `Invoice` ADD CONSTRAINT `Invoice_transactionId_fkey` FOREIGN KEY (`transactionId`) REFERENCES `Transaction`(`id`) ON DELETE RESTRICT ON UPDATE CASCADE;
+
+-- AddForeignKey
+ALTER TABLE `Invoice` ADD CONSTRAINT `Invoice_userId_fkey` FOREIGN KEY (`userId`) REFERENCES `UserProfile`(`id`) ON DELETE RESTRICT ON UPDATE CASCADE;
diff --git a/prisma/schema.prisma b/prisma/schema.prisma
index d102eb0e1..a3e9fa868 100644
--- a/prisma/schema.prisma
+++ b/prisma/schema.prisma
@@ -64,6 +64,7 @@ model Network {
   prices    Price[]
 }
 
+
 model Transaction {
   id        String                 @id @default(dbgenerated("(uuid())"))
   hash      String                 @db.VarChar(255)
@@ -74,6 +75,8 @@ model Transaction {
   opReturn String                @db.LongText @default("")
   address   Address                @relation(fields: [addressId], references: [id], onDelete: Cascade, onUpdate: Cascade)
   prices    PricesOnTransactions[]
+  invoices    Invoice[]
+
   createdAt DateTime                  @default(now())
   updatedAt DateTime                  @updatedAt
 
@@ -166,6 +169,7 @@ model UserProfile {
   lastSentVerificationEmailAt DateTime?
   wallets   WalletsOnUserProfile[]
   addresses AddressesOnUserProfiles[]
+  invoices Invoice[]
   preferredCurrencyId Int @default(1)
   preferredTimezone String    @db.VarChar(255)@default("")
 
@@ -241,3 +245,25 @@ model OrganizationInvite {
   organizationId String
   organization Organization     @relation(fields: [organizationId], references: [id], onDelete: Cascade)
 }
+
+model Invoice {
+  id            String      @default(uuid())
+  userId        String
+  invoiceNumber String
+  transactionId String
+  transaction   Transaction @relation(fields: [transactionId], references: [id], onUpdate: Cascade, onDelete: Restrict)
+  userProfile   UserProfile @relation(fields: [userId], references: [id], onUpdate: Cascade, onDelete: Restrict)
+
+  amount           Decimal
+  description      String
+  recipientName    String
+  recipientAddress String
+  customerName     String
+  customerAddress  String
+
+  createdAt DateTime @default(now())
+  updatedAt DateTime @updatedAt
+
+  @@id([id, userId])
+  @@unique([invoiceNumber, userId], map: "Invoice_invoiceNumber_userId_unique_constraint")
+}
\ No newline at end of file
diff --git a/services/invoiceService.ts b/services/invoiceService.ts
new file mode 100644
index 000000000..157e3450d
--- /dev/null
+++ b/services/invoiceService.ts
@@ -0,0 +1,37 @@
+import prisma from 'prisma/clientInstance'
+import { Invoice } from '@prisma/client'
+interface CreateInvoiceParams {
+  userId: string
+  transactionId: string
+  amount: number
+  description: string
+  recipientName: string
+  recipientAddress: string
+  customerName: string
+  customerAddress: string
+}
+
+export async function createInvoice (params: CreateInvoiceParams): Promise<Invoice> {
+  const year = new Date().getFullYear()
+
+  const latestInvoiceNumber = await prisma.invoice.findFirst({
+    where: {
+      invoiceNumber: {
+        startsWith: `${year}-`
+      }
+    },
+    orderBy: {
+      invoiceNumber: 'desc'
+    }
+  })
+  const nextNumber = (latestInvoiceNumber != null) ? parseInt(latestInvoiceNumber.invoiceNumber.split('-')[1]) + 1 : 1
+
+  const invoiceNumber = `${year}-${String(nextNumber).padStart(3, '0')}`
+
+  return await prisma.invoice.create({
+    data: {
+      invoiceNumber,
+      ...params
+    }
+  })
+}
diff --git a/utils/validators.ts b/utils/validators.ts
index 27f20eb0e..8f29ca6c6 100644
--- a/utils/validators.ts
+++ b/utils/validators.ts
@@ -550,3 +550,24 @@ export const parseUpdateUserTimezonePUTRequest = function (params: UpdateUserTim
 
   return { timezone: params.timezone }
 }
+
+export interface CreateinvoicePOSTParameters {
+  userId: string
+  transactionId: string
+  amount: number
+  description: string
+  recipientName: string
+  recipientAddress: string
+  customerName: string
+  customerAddress: string
+}
+
+export const parseCreateInvoicePOSTRequest = function (params: CreateinvoicePOSTParameters): CreateinvoicePOSTParameters {
+  let description = params.description
+  if (params.userId === '' || params.userId === undefined) throw new Error(RESPONSE_MESSAGES.USER_ID_NOT_PROVIDED_400.message)
+  if (description === undefined) description = ''
+  return {
+    ...params,
+    description
+  }
+}