Business document guide

Invoice vs receipt: when to use each document

An invoice and a receipt can describe the same sale at different stages. The invoice asks the customer to pay; the receipt records that payment was received.

At a glance

Clear practical differences

DifferenceInvoiceReceipt
Main purposeRequests payment for goods or services.Provides a record that payment was received.
Typical timingIssued before payment is due or collected.Issued after payment is received.
Key detailsDue date, line items, amount due, tax, terms and payment instructions.Payment date, method, reference, paid items and amount received.
What it provesWhat the seller is charging and when payment is expected.What was paid and how the payment was recorded.

Choose the document

When to use each document

Use an invoice to request payment

Prepare the invoice when you need to itemize a sale or service and communicate the amount and due date.

Open Invoice Generator

Use a receipt after payment

Prepare the receipt after money has been received and you need to acknowledge the payment method, reference and amount.

Open Receipt Generator