Which component is NOT necessary for the remittance details on an invoice?

The choice indicating that past contracts are not necessary for the remittance details on an invoice is accurate because an invoice's primary purpose is to document the sale of goods or services rendered, as well as the corresponding payment requirements. Remittance details typically include essential components that clarify the transaction and are relevant to the current invoice.

A complete description of goods or services is necessary for both clarity and accounting purposes, ensuring that the buyer understands what they are being billed for. Including sales/use tax is also important when applicable, as it reflects the full amount due and complies with tax regulations. The contract price is crucial as it establishes the agreed-upon cost that the client is responsible for paying.

In contrast, past contracts do not pertain to the specifics of the current invoice. They may provide historical context or background for ongoing work or a relationship but do not serve as a requisite component for the invoice's remittance details. Thus, it is clear why past contracts are excluded from the essential elements needed for remittance details.