Receipt vs. Invoice — What's the Difference?
Edited by Tayyaba Rehman — By Fiza Rafique — Updated on April 18, 2024
A receipt is a proof of payment provided after a transaction, detailing what was purchased and the amount paid, whereas an invoice is a request for payment, listing goods or services provided with their costs.
Difference Between Receipt and Invoice
Table of Contents
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Key Differences
A receipt is issued after a payment is made, confirming the transaction has been completed, while an invoice is sent prior to payment, serving as a bill that details the amount owed for goods or services delivered.
Receipts are typically concise, listing the date, total amount paid, and a brief description of the items, whereas invoices are more detailed, including descriptions, quantities, prices of goods or services, and terms of payment.
In terms of purpose, a receipt acts as proof of ownership or payment, useful for returns or warranty claims. On the other hand, an invoice is used by sellers to track sales and manage inventory, and by buyers to confirm order details and arrange payment.
From a legal standpoint, receipts are important for demonstrating that a transaction occurred and that the buyer has fulfilled their financial obligation, whereas invoices can be used as legal evidence of a demand for payment in disputes or audits.
In the handling of financial records, receipts are essential for personal or business expense tracking and tax purposes, whereas invoices are crucial for accounts receivable management and cash flow analysis.
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Comparison Chart
Definition
Document confirming payment has been made
Document requesting payment for goods or services
Issuance Timing
After payment
Before payment is received
Primary Purpose
Proof of transaction completion
Request for payment
Detail Level
Minimal details, usually just totals
Detailed, including item descriptions and costs
Legal Use
Proves payment and ownership
Supports billing and payment claims
Compare with Definitions
Receipt
Proof of a financial transaction.
She saved the receipt as proof of purchase.
Invoice
Sent before payment is collected.
They issued an invoice immediately after delivering the goods.
Receipt
Often used for returns or exchanges.
He needed the receipt to return the defective merchandise.
Invoice
Includes itemized charges and total due.
The invoice listed all the parts used in the repair.
Receipt
A document acknowledging that payment has been made.
I received a receipt after paying for my groceries.
Invoice
A bill for goods or services provided.
The contractor sent an invoice for the completed work.
Receipt
Can be electronic or printed.
She opted for an electronic receipt to save paper.
Invoice
Can specify payment terms.
The invoice stated a 30-day payment term.
Receipt
A record given to a customer post-purchase.
The cashier handed me a receipt along with my change.
Invoice
Used by businesses to manage accounts receivable.
They updated their accounting software to better track invoices.
Receipt
A receipt (also known as a packing list, packing slip, packaging slip, (delivery) docket, shipping list, delivery list, bill of parcel, manifest or customer receipt) is a document acknowledging that a person has received money or property in payment following a sale or other transfer of goods or provision of a service. All receipts must have the date of purchase on them.
Invoice
An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice.
Receipt
The action of receiving something or the fact of its being received
Families in receipt of supplementary benefit
I would be grateful if you would acknowledge receipt of this letter
Invoice
A detailed list of goods shipped or services rendered, with an account of all costs; an itemized bill.
Receipt
A recipe
She spent hours in the kitchen, trying all sorts of receipts
Invoice
The goods or services itemized in an invoice.
Receipt
Mark (a bill) as paid
The receipted hotel bill
Invoice
To make an invoice of (goods or services).
Receipt
The act of receiving
We are in receipt of your letter.
Invoice
To send an invoice to; bill.
Receipt
The fact of being or having been received
They denied receipt of the shipment.
Invoice
A bill; a commercial document issued by a seller to a buyer indicating the products, quantities and agreed prices for products or services that the seller has already provided the buyer with. An invoice indicates that, unless paid in advance, payment is due by the buyer to the seller, according to the agreed terms.
Receipt
Often receipts A quantity or amount received
Cash receipts.
Invoice
The lot or set of goods as shipped or received.
The merchant receives a large invoice of goods.
Receipt
A written acknowledgment that a specified article, sum of money, or shipment of merchandise has been received.
Invoice
The price which a seller or dealer pays the manufacturer for goods to be sold.
Receipt
A recipe.
Invoice
(transitive) To bill; to issue an invoice to.
I will invoice my supplier tomorrow.
Receipt
To mark (a bill) as having been paid.
Invoice
(transitive) To make an invoice for (goods or services).
Receipt
To give or write a receipt for (money paid or goods or services delivered).
Invoice
A written account of the particulars of merchandise shipped or sent to a purchaser, consignee, factor, etc., with the value or prices and charges annexed.
Receipt
To give a receipt.
Invoice
The lot or set of goods as shipped or received; as, the merchant receives a large invoice of goods.
Receipt
The act of receiving, or the fact of having been received.
A balance payable on receipt of the goods.
Invoice
To make a written list or account of, as goods to be sent to a consignee; to insert in a priced list; to write or enter in an invoice.
Goods, wares, and merchandise imported from Norway, and invoiced in the current dollar of Norway.
Receipt
(obsolete) The fact of having received a blow, injury etc.
Invoice
An itemized statement of money owed for goods shipped or services rendered;
He paid his bill and left
Send me an account of what I owe
Receipt
(in the plural) A quantity or amount received; takings.
This weekend's receipts alone cover our costs to mount the production!
Invoice
Send an bill to;
She invoiced the company for her expenses
Receipt
A written acknowledgment that a specified article or sum of money has been received.
Receipt
(A piece of) evidence, documentation, etc. to prove one's past actions, accomplishments, etc.
Receipt
(A piece of) evidence (e.g. documentation or screen captures) of past wrongdoing.
Receipt
(archaic in New England and rural US since end of 20th century, elsewhere since middle of 20th century) A recipe, instructions, prescription.
Receipt
(obsolete) A receptacle.
Receipt
(obsolete) A revenue office.
Receipt
(obsolete) Reception, as an act of hospitality.
Receipt
(obsolete) Capability of receiving; capacity.
Receipt
(obsolete) A recess; a retired place.
Receipt
To give or write a receipt (for something).
To receipt delivered goods
Receipt
To put a receipt on, as by writing or stamping; to mark a bill as having been paid.
To receipt a bill
Receipt
The act of receiving; reception.
Receipt
Reception, as an act of hospitality.
Thy kind receipt of me.
Receipt
Capability of receiving; capacity.
It has become a place of great receipt.
Receipt
Place of receiving.
He saw a man, named Matthew, sitting at the receipt of custom.
Receipt
Hence, a recess; a retired place.
Receipt
A formulary according to the directions of which things are to be taken or combined; a recipe; as, a receipt for making sponge cake.
She had a receipt to make white hair black.
Receipt
A writing acknowledging the taking or receiving of goods delivered; an acknowledgment of money paid.
Receipt
That which is received; that which comes in, in distinction from what is expended, paid out, sent away, and the like; - usually in the plural; as, the receipts amounted to a thousand dollars.
Receipt
To give a receipt for; as, to receipt goods delivered by a sheriff.
Receipt
To put a receipt on, as by writing or stamping; as, to receipt a bill.
Receipt
To give a receipt, as for money paid.
Receipt
The act of receiving
Receipt
An acknowledgment (usually tangible) that payment has been made
Receipt
Report the receipt of;
The program committee acknowledged the submission of the authors of the paper
Receipt
Mark or stamp as paid
Common Curiosities
What is an invoice?
A detailed bill issued before payment, listing goods or services provided.
What information is included on an invoice?
Descriptions, quantities, unit prices, and total amount due.
Why keep receipts?
For proof of purchase, warranty claims, or tax documentation.
What if I lose a receipt?
It might complicate returns or warranty claims.
When do I receive a receipt?
After a transaction is completed and payment is made.
How are invoices used by companies?
For tracking sales, managing inventory, and accounting.
Can an invoice be canceled?
Yes, if the goods or services are not delivered, or if both parties agree.
What role do receipts play in returns?
They are typically required to return or exchange items.
What is a receipt?
A document proving that payment has been made.
What happens if I don’t pay an invoice?
It may result in legal action or service interruption.
How long should I keep invoices and receipts?
Generally, for at least three years for tax and auditing purposes.
Can I receive a receipt electronically?
Yes, electronic receipts are common and valid as proof of purchase.
Is a receipt the same as a proof of purchase?
Yes, it serves as proof that a product or service was paid for.
Do both receipts and invoices need to be stored?
Yes, for accounting, legal, and record-keeping purposes.
Are invoices legally binding?
Yes, they are considered a formal request for payment.
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Written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
