Invoice Vs Receipt
Receipt vs Invoice, although most people have heard of these terms, sometimes they may use them incorrectly. Both of these documents are provided when a sale occurs, whether that is the sale of a product or the sale of a service. However, they both have different purposes.
Is an Invoice a Receipt?
In a nutshell, the answer is no. An invoice is issued to a client that needs to pay for products or a particular service. It is an official document that requests payment after a job or delivery has been completed. In comparison, a receipt is issued after a company has received payment. This document will act as confirmation of payment. The structure of these documents also differs as there are a number of mandatory things that need to be present on each document. Take a look at our Receipt Templates to get a better understanding of what they look like.
What Is an Invoice Number on a Receipt?
An Invoice Number can usually be found on an invoice or receipt, but this does not mean that the receipt is also an invoice. An invoice number is created instantly after an order has commenced. It usually reflects the date and time that the invoice was formed. This differs from a receipt number which can also be found on a receipt, but this number reflects the date and time that the purchase was paid.
What's the Difference Between a Receipt and an Invoice?
Apart from having different functions, these documents are formed and distributed at two different stages during the sale process. At the very start, an invoice Template will be generated which should include a comprehensive list of all the goods or services requested, along with their quantity and subtotal. This is the document that requires payment.
On the other hand, a receipt is presented upon the closure of a sale. It should include the total amount paid and any relevant outstanding balances left to pay. A receipt can also be used to get a refund if that applies to the product or service that was purchased. It is the official confirmation that you have paid and therefore it is a good idea to keep hold of any receipts and not disregard them after a purchase.
During a purchase, an invoice may not always be issued. This depends on the type of business you are approaching. Most of the time, however, businesses will issue an invoice as this helps them to keep records for tax purposes. On the contrary, a receipt should always be issued after a company has received a payment from a client.
Related Topics:
