Invoice receipt and payments receipt are non-negotiable commercial tools that are used while making transactions, while invoice receipt is a document prepared by the seller and issued to the buyer, for an authorization to sell. This invoice ncludes the details of the goods and contains the name and address of the parties to the transaction, price and discount, the date and place of delivery, and payments receipt is a request for payment. In this article, we will learn about each of them in some detail, as well as the difference between payments receipt and invoice receipt.
The receipt is a legal, commercial instrument used to indicate a transaction of some goods or services of value that have already been paid for.
Once the items bought have been paid, the receipt is issued by the seller to the buyer as proof that the payment has been made.
It includes details about the buyer and the item such as quantity, price, taxes, discounts, method and date of payment, total amount paid, receipt number, and signature of the seller or authorized agent. and you can use it with Digital products.
As for the invoice receipt, it is an acknowledgment issued by the seller to the buyer of the goods or services requesting payment of the sold goods or services provided by him.
It is a legal, non-negotiable document, containing details regarding quantity, price, discount, taxes, total amount payable, invoice number, invoice issue date, and seller’s signature.
The invoice receipt is delivered before the goods are paid to indicate the amount owed for the goods, and is before the payments receipt is issued.
Importance of payments receipt and invoice receipt
Payments receipt and invoice receipt is a prominent part of the purchasing cycle, invoice receipt helps the seller to keep a record of the sale and determine the quantity of goods received or not.
The buyer can also track and match the details of goods or services included in the invoice receipt.
Payments receipt can help customers keep track of payments for things, and sellers can also determine how much invoices are received and which ones are still outstanding.
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The difference between payments receipt and invoice receipt
Despite the great similarity between payments receipt and invoice receipt, as both are commercial documents, and also part of the purchase cycle.
And both contain details about the buyer and seller and are not legally negotiable, there are some important differences between them:
- Invoice receipt is a request for payment, and payments receipt is a confirmation of payment.
- Invoice receipt is issued before payment while payments receipt is issued after payment.
- Invoice receipt is used to track the sale of goods or services, on the contrary, payments receipt acts as documentation for the buyer that the amount of the goods has been paid.
- Invoice receipt indicates the total amount due while payments receipt indicates the total amount paid with the payment method.
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In the context of talking about payments receipt and invoice receipt, there is an important term that we also need to know, which is billing receipt, where the billing receipt is used for purchases made on credit.