Receipt vs Invoice
It looks like such a simple question, isn’t it? You get a receipt for the payment you make for the purchases at a mall or supermarket whereas you raise an invoice for the good or services that you supply to a retailer or a manufacturer. There are many who think that differences between receipt and invoice are much deeper and remain confused. This article will find out if there is anything hidden that has a different meaning.
What do you do if you are the supplier of raw materials to a factory to receive payments for the last consignment? You obviously send a missive through your employee to the factory owner to kindly make payment for the invoice you have sent earlier and which has fallen due. So the invoice is a reminder for payment and it contains the details of the items supplied by you along with their rates, grand total and the terms of payment. An invoice is a bill that includes taxes that you need to pay to the government on the payment that you are going to receive. It is a document that is a proof that you supplied materials in the mentioned quantity and the mentioned rates to the party and it entitles you a payment from the party within the mentioned period or on the specified date.
What then is a receipt? A receipt is a document that you get from vendor that mentions the items you have purchased and their rates. It is a proof that you have just made a payment for the merchandise you have purchased or are going to pay in a minute upon getting a receipt.
Difference Between Receipt and Invoice
• An invoice is a document that tells you what you need to pay upon presentation while a receipt is a document that is a proof of the payment you just made for the items you purchased.
• When you buy medicines from a chemist, he issues you a receipt describing all the items, their rates and a proof (paid) of payment at the end.
• When you supply raw materials to a factory, you raise an invoice that gets you payment from the factory owner upon completion of the date mentioned on the invoice.