There are a lot of complications in understanding the difference between invoice and receipt. The persons who engage in trading activities knows them, undoubtedly, but the person related to non-trading activities may have to go with severe perplexity to interpret the two terms. Here with the help of this article, the major difference between invoice and voucher has been discussed for the full apprehension of the two entities.
Content:
Invoice Vs Receipt
2.
Definition
4.
Similarities
5.
Conclusion
|
Basis for
Comparison
|
Invoice
|
Receipt
|
|
Meaning
|
An invoice is a commercial document issued
by the vendor to the purchaser to request payment
|
A receipt is a document issued by the
vendor to the purchaser after the final payment is done.
|
|
Time of Issue
|
Before the payment.
|
After the payment.
|
|
Importance
|
To record the details of the merchandise
sold, but the payment is yet due against it.
|
To act as an evidence that the payment for
merchandise bought has been done.
|
|
Details
|
Quantity, unit price, invoice number,
discount, taxes and total due.
|
Quantity, unit price, receipt number,
discount, taxes, the total amount paid and mode of payment.
|
Definition
of Invoice
An
invoice is an acknowledgement 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 which 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.
Definition of Receipt
A
receipt is a commercial legal instrument used for stating that some goods or
services of value have been received. It is issued by the vendor to the
purchaser to act as proof that payment has been made. The receipt is issued
after the payment of the stuff. The document contains details of buyer and
commodity like quantity, price, taxes, discounts, mode and date of payment, the
total amount paid, receipt number and signature of the seller or his authorized
agent.
Key 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.
Similarities
·
Both are commercial
documents.
·
Both are a part of the
purchase cycle.
·
Both contain details
about buyer and seller.
·
Both are legally
non-negotiable instrument.
Conclusion
Invoice
and Receipt both are a prominent part of the purchase cycle. The invoice helps
the seller to keep the record of sale and to determine that amount of
merchandise has been received or not. The buyer can also track and match the
details of goods or services listed on the invoice are received. The receipt
can help the customers to track payments for the stuff and sellers can also
identify that amount on which invoices is received and which ones are still
outstanding.
Source:
http://keydifferences.com/By Surbhi
S (January 17, 2015)
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