Key Differences

FeatureInvoiceReceipt
TimingUsually issued before paymentIssued after payment is received
PurposeRequests paymentConfirms payment received
Main focusAmount due, payment deadline and termsAmount paid, payment date and actual payment method
Document numberInvoice numberReceipt number
Common useB2B sales, freelance services and sales on creditRetail purchases, in-store checkout and payment confirmations after invoices are paid

Details

Invoice

  • Products or services, quantities and unit prices.
  • Payment due date and payment instructions.
  • It is used by companies to keep track of their accounts receivable (and to remind their customers to make payment).

Receipt

  • In the receipt you indicate the amount received, when it was received, and how the payment was made (cash, credit card, bank transfer, etc.).
  • Customers hold on to the receipt as proof of purchase/payment.
Invoice INV-1042 for $800 of logo design, issued October 12, due October 27, and unpaid Invoice · Payment request Number / due date Amount due
Receipt REC-1042 for an $800 bank transfer received October 16, referencing INV-1042 with no outstanding balance Receipt · Payment confirmation Number / issue date Payment date & method Amount received & balance

Transaction Timeline

October 11: design completed; October 12: $800 invoice sent; October 16: payment received; October 17: receipt issued
A florist handing a receipt to a customer after payment

How do I create invoices and receipts with Pocket Invoice?

Pocket Invoice provides online tools to make invoices & receipts.

  • Create an invoice: On the website for Pocket Invoice you just need to fill out information about your business and your customer as well as what you are invoicing for, quantities, unit price, tax and payment due date. You can also include your company logo and payment instructions.
  • Create a receipt: You can actually generate a receipt online after you've been paid. Just put in how much you were paid and add a note about when you were paid, how you were paid, and the invoice # (if any) that pertains to that payment.
  • Download and share: You can preview and download any invoice and receipt PDF at no charge. After you download a PDF, you can print it or send it to your customer via your email or message service.
  • Manage records in the app: Using the Pocket Invoice app, store information about customers, invoices and payments for your day to day business.
Create a free invoice Create a free receipt Manage in the app

Questions

Can I give a receipt before payment?

Don't confirm payment you haven't received. If the client needs approval before paying, provide a quote, estimate, pro forma invoice or other applicable payment request. A receipt documents money actually received.

Can I use a paid invoice as a receipt?

Providing the actual amount paid and date can confirm payment. But the client or local rules may require a separate receipt. Ask what is needed and for which purpose.

Do I need to keep track of all payments?

Keep track of the actual money received, dates and transactions. Keep the balance updated. Give confirmation when needed so both parties can reconcile the same transaction.

Can I use a receipt instead of a tax invoice for reimbursement?

It depends on local rules and the reimbursement policy. Payment confirmation, a commercial invoice and a tax invoice have different purposes. Ask what is needed.

Sources