Invoice or receipt: which do you send?
An invoice records a request for payment for goods or services. A receipt records that payment was received. If payment is still due, send an invoice; after it arrives, a receipt can confirm the transaction. Your accounting treatment depends on your business and the rules that apply to it.
The Receipt Generator makes the second one, with the method and the date it cleared. Receipt Generator
Why the distinction matters to your books
An invoice shows what was supplied, the amount requested and when it is due. A receipt shows what was paid and when. Keep the two dates distinct so an unpaid invoice is not mistaken for a settled one.
The dates can fall in different accounting periods. Whether income belongs in the period of the invoice, the payment, or another point depends on the accounting method and local tax rules; the date gap alone does not decide it.
When you need both
For a sale on payment terms, an invoice requests the amount due and a receipt can confirm it was paid. For an immediate retail sale, a point-of-sale receipt may be the main document. Invoicing requirements vary by jurisdiction and customer type.
Questions people ask next
Is a receipt proof of purchase?
It can help prove payment and identify the purchase, especially when it includes the seller, items, date and amount. A warranty provider or expense process may ask for additional information.
Can one document be both?
A paid invoice can record the amount billed and the payment date and method. Whether it satisfies a formal receipt or tax-invoice requirement depends on the applicable rules.
Do I have to issue a receipt?
Receipt requirements vary by location and type of transaction. Providing one when payment is received gives both parties a clear record.