Invoice vs receipt: what’s the difference?

An invoice says “please pay this”. A receipt says “thanks, you’ve paid”. One comes before the money moves, the other after.

Invoice

Purpose
Request payment
Sent
After delivery, before payment
Key fields
Invoice number, due date, payment terms, how to pay
In the books
Creates a receivable (money owed to you)
Shows
Amount due
Make an invoice

Receipt

Purpose
Confirm payment
Sent
When payment arrives
Key fields
Receipt number, payment date, payment method, invoice reference
In the books
Clears the receivable; records cash
Shows
Amount paid (and any balance)
Make a receipt

Which one do you need?

  • You did the work and haven’t been paid: send an invoice.
  • The customer paid on the spot: give a receipt.
  • The customer paid an invoice: send a receipt that references the invoice number (in the generator, open the invoice and press “Receipt (paid)”).
  • You need to reduce an invoice already sent: issue a credit note.

Both are records you should keep. The IRS lists invoices and receipts among the supporting documents for business income and expenses (IRS recordkeeping).

Questions people ask

Is an invoice proof of payment?

No. An invoice shows what is owed. Proof of payment is a receipt, a bank statement or a payment confirmation.

Do I need to send both an invoice and a receipt?

For credit sales, you send an invoice first and, if the customer wants one, a receipt when they pay. For immediate sales (a shop, a market stall) a receipt alone is usual.

Can one document be both?

An invoice marked “Paid” with the payment date and method often serves as a receipt. Many businesses still issue a separate receipt to keep numbering clean.

What is a sales receipt vs a payment receipt?

A sales receipt is given at the point of sale when goods and payment change hands together. A payment receipt acknowledges money received against an earlier invoice.