Therefore, the document that you will use to seek payment from your customer is the invoice. Suppose you are an event manager, and you have organized a function for your client in a five-star hotel. Both are legally non-negotiable instruments.They contain details about the buyer and seller.While the receipt is given to confirm the completion of the sale. The purpose of an invoice is to seek payment.The invoice indicates the total amount due, whereas the receipt indicates the total sum paid along with the date on which payment is made.On the other hand, a receipt acts as legal evidence that the customer is discharged from all the liabilities, i.e. The objective of issuing an invoice is to give the customer an overview of their order, the amount they owe and by which date they should make the payment.As against, the receipt highlights the actual amount paid by the customer, along with the date on which the amount is paid. The invoice intimates to the client the total amount due for payment and the due date for payment.Conversely, a receipt is proof of the transaction. But, a receipt is a confirmation document which states that the seller has received the amount due on account of the goods sold or services rendered to the customer. Generally, a seller issues an invoice to the customer when he delivers the goods, but payment is due.Key Differences Between Invoice and Receipt The receipt can help the customers to track payments for the stuff. However, in the case of credit sales, receipts are issued on the payment of invoices generated in this regard.Ī receipt is a commercial legal instrument used to state that some goods or services of value have been received. In the case of cash sales, receipts are issued instantly. In short, it is proof that payment is made by the customer to the seller for the goods and services listed on it. Total amount due for payment, including taxes and fees.Īlso Read: Difference Between Proforma Invoice and InvoiceĪ receipt is another document that a seller issues to its customer, either electronically or physically, when the customer has cleared all the bills due to him.Details of goods and services provided, like quantity, price and so on.Payment Method (How the customer can pay?).Seller’s name, logo and contact details.Mentioning the terms and conditions of payment. Account for the goods delivered or services rendered.Determine expectations about the forthcoming sale in a transparent manner.Statement of the amount owed by the buyer to the seller.Įvidence of purchase and amount received. Content: Invoice Vs ReceiptĪn invoice is a commercial document that the seller issues to the customer to request payment.Ī receipt is a document that the seller issues to the purchaser when he makes the final payment. This is because they are needed at the time of filing a return and also at the time of tax audit. The difference between an invoice and a receipt lies in the purpose for which the document is issued.Īs a businessman, you should always keep these documents for tax purposes. Both invoice and receipt are non-negotiable commercial instruments which firms use during the course of a transaction. On the other hand, a seller issues a receipt when the customer pays off the amount due to him.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |