Notable Differences Between Invoice And Receipt

An invoice is a document, made by the seller and issued to the buyer, so as to authorize the sale. It contains the details of the goods and contains the name and address of the parties to the transaction, etc

Notable Differences Between Invoice And Receipt
Notable Differences Between Invoice And Receipt

A receipt is a document issued by the vendor to the purchaser after the final payment is done. The receipt can help the customers to track payments for the stuff and sellers can also identify that amount on which invoices are received.

Definition Of Invoice

An invoice is an acknowledgment issued by the vendor to the purchaser of goods or services to request for the payment of goods sold or services rendered by him. It is a non-negotiable legal document that identifies the buyer and seller of the stuff.

It contains details regarding quantity, price, discount, taxes, the total amount due for the payment, invoice number, date of issue of invoice, and the seller’s signature. The instrument is delivered prior to the payment of the goods for indicating the amount due against the merchandise.

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 proof that you supplied materials in the mentioned quantity and the mentioned rates to the party and it entitles you payment from the party within the mentioned period or on the specified date.

Definition Of Receipt

The receipt is a document, which gives a confirmation that payment has been made by the buyer to conclude the sale. In most cases, a receipt is considered as a proof of ownership of products for the buyer of a product.

The details of goods and services, such as its price, tax charge, discount allowed, credits, and method of payment, are mentioned in the receipt. For example, when you purchase petrol for your vehicle at a petrol station, you get a receipt from a seller in which detailed contact information of a seller is provided, but the information related to the buyer is either limited or not included in that document.

A receipt is a document that you get from the vendor that mentions the items you have purchased and their rates. It is 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.

Differences Between Invoice and Receipt

1. An Invoice is a request for payment and receipt is a confirmation of payment.

2. The significant difference between the two is that the invoice is issued prior to the payment while the receipt is issued after the payment.

3. The invoice is used to track the sale of goods or services. On the contrary, receipt acts as documentation for the buyer that the amount of the merchandise has been paid.

4. The invoice indicates the total amount due whereas the receipt indicates the total sum paid along with the mode of payment.

5. 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.

6. 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.

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afriedu Team

 

AfriEdu Team 

 

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