The key difference between an invoice and a receipt is that an invoice is issued when the product is sold and it is a record of sales. On the other hand, a receipt is issued for payment made and it is a record of payment made.
Understanding the difference between the two is very important for any business so that both the documents can be used in a proper way when required. For a buyer of a product or service, both these documents are important and one must insist that the seller provides them.
The following information a is recorded in an invoice:
a. Name and address of the seller
b. Name and address of the buyer
c. Estimate number if any
d. Purchase order number if any
e. Bill date
f. Payment due if any
g. Invoice number
h. Particulars of the goods/services
i. Taxes and discounts
h. Terms and conditions of the sale
The following information is recorded in a receipt:
a. The amount paid against the sale
b. The invoice number and date
Invoices and receipts are complementary documents and should not be used as replacements of each other. They should always be used together for the purposes highlighted.