Invoices vs. receipts: Understanding the difference - QuickBooks Global (2024)

FAQs

Invoices vs. receipts: Understanding the difference - QuickBooks Global? ›

Invoices outline which goods and services a customer needs to pay for, as well as the terms of payment, including when the payment is due. A receipt is issued as a proof of payment; as such, you should only issue a receipt to a customer if they have provided payment for a transaction.

Receipts contain information about a completed payment, including the date and amount paid. How they're used in accounting: Receipts record a completed sale, so you'll record them as income. Invoices mean the customer still has to pay you, so you'll record them as accounts receivable.

Invoices are issued prior to the customer sending the payment, whereas a receipt is issued after the payment has been received. The invoice acts as a request for payment, and the receipt acts as a proof of payment. This also means that each document requires different information.

The main difference between an invoice and a receipt is that an invoice is issued prior to a payment being made, and a receipt is issued after a payment is processed. An invoice is a request to collect payment issued by the seller, whereas a receipt is proof of payment given to the buyer.

An invoice is for sales that will be paid in the future; a sales receipt is for sales that are paid at the time of sale. An invoice records the sale; a sales receipt records the payment.

No. Even if an invoice indicates “payment due on receipt,” it is not a proof of purchase in and of itself, since it is only the request for payment. Only a receipt or a “paid invoice” can serve as proof of purchase, as this records when the payment was actually submitted by the client.

While an invoice relates to a specific transaction, a statement can cover multiple transactions. It's a document used when buyers owe the business money on account. The statement is a current report showing the customer's account status, reflecting payments already made and outstanding invoices.

Since an invoice is a request for payment, not proof of payment, you shouldn't use an invoice in place of a receipt. Once a customer or client pays your invoice, make sure to provide a separate receipt.

There's a difference between receipts and tax invoices. A receipt is a document that shows proof of purchase, and allows you to return damaged or faulty goods to the business selling it. A tax invoice is a document shows the price of a purchase, as well as whether GST was collected.

An e-invoice is an electronic document that shows a sale has occurred through EFRIS and is ONLY issued by a taxpayer who is registered for VAT. An e-receipt is an electronic document that shows a sale has occurred through EFRIS and is issued by a taxpayer who is not registered for VAT.

Do I need invoice or receipt? ›

Receipts, however, should be issued any time a payment is received from the customer. If you're accepting a payment that is made immediately upon providing the goods or services, you don't need to issue an invoice, but can offer a receipt as proof of payment.

If your customer immediately pays for products or services, create a sales receipt. You can also add multiple sales receipts all at once with QuickBooks Online Advanced. To create single and multiple sales receipts, follow the recommended steps outlined in this article.

Each document differs based on the type of sale they cover. Sales invoices are for the sale of goods or property, while official receipts are for the sale of services or leases of property. Both are considered principal evidence for these transactions. In other words, they're definitive proof that they happened.

The main difference is that invoices are issued before a business has received payment from a customer, and a receipt is issued after payment has been collected.

The purchase invoice tracks a company's expenses and cash outflow. On the other hand, a sales invoice is issued by the seller, and it shows when they expect the payment. It is usually sent by the vendor as they dispatch the goods and mentions the number of items as well as the total cost they are owed.

The difference lies in when they are issued and how they are used for accounting purposes. While an invoice is raised to get payment from the customer, a receipt is issued after receiving the payment from the customer. Typically, a receipt is issued only after the customer pays in full.

In QuickBooks, a sales receipt is a type of transaction that you can use to record sales and payments all in one step. When you create a sales receipt in QuickBooks, you're essentially telling the software that you received payment from a customer in exchange for goods or services.

Use this option if you received the items but the supplier did not provide the bill yet. This will create an Item Receipt which increases your inventory asset account and accounts payable.

The invoice lists the relevant services or products and advises the customer of the total payment due. Therefore, it precedes the receipt. After a customer receives their invoice and makes the appropriate payment, they receive their receipt as proof of payment.