What is the Difference Between Receipt and Invoice?

The main difference between a receipt and an invoice is the purpose and timing of their issuance. Here are the key differences between the two:

1. Purpose: An invoice is a request for payment issued by the seller, while a receipt is proof of payment given to the buyer. Invoices are used by businesses to track the sale of their goods and services, whereas receipts serve as documentation for the buyer to demonstrate the amount they've paid.
2. Timing: Invoices are issued prior to the customer sending the payment, whereas a receipt is issued after the payment has been received.
3. Information: Invoices should include a detailed breakdown of the products and services, the total amount owed, including any taxes and fees, and the date the payment is due. Receipts, on the other hand, only need to show the amount paid and any balance due.

In summary, invoices are issued to request payment for goods or services, while receipts are issued to confirm that payment has been received. Both documents play crucial roles in the sales process and help businesses keep thorough records of their transactions.

Comparative Table: Receipt vs Invoice

Here is a table comparing the differences between a receipt and an invoice:

Both invoices and receipts are commercial documents issued by the seller, but they serve different purposes. An invoice is issued to request payment for goods or services, while a receipt is issued to prove that payment has been made.