Don’t be confused between receipt vs invoice. Here is a blog to help businesses and professionals understand the minor difference that makes them majorly different from one another in the books of account. 

Many business owners are confused between various business documents, and one of them is the invoice and a receipt. 

Technically, invoice and receipt are the documents that the seller raises to the buyer. But yes, the importance of both of them is different, including their use. 

What is an invoice?

An invoice is a legal business document that the seller issues to the buyer. It is issued for raising the payment from the customer or the client. There are different types of business invoices created and sent by the seller. The most common business invoice is the commercial invoice or the final invoice. 

An invoice is called a demand for payment. Basically, when a transaction occurs between a buyer and a seller, the seller sends an invoice to the buyer with all the sale information, including the product or service details, quantity, tax, total amount, payment details, date, invoice number, and invoice number business signature. 

FAQs related to ‘Invoice or Invoicing’

In this blog post, we explain receipt vs invoice difference; it is important to have a clear concept of invoicing. Here are a few FAQs to help understand invoicing. 

What are the different types of invoices?

Invoices are legal business documents. Below are the different types of invoices.

  1. Commercial invoice
  2. Proforma invoice
  3. Credit note
  4. Debit note
  5. Interim invoice
  6. Recurring invoice 
  7. Past due invoice 
  8. Expense report 
  9. Timesheet invoice 

Frequently asked questions related to ‘Invoice or Invoicing-Receipt vs invoice

When does the seller send an invoice?

The seller issues an invoice to the buyer as soon the sale is completed. The sale here refers to the buying and selling of goods or services. 

For example, you are running a digital marketing company. You issue an invoice mentioning the details of your last month’s work, including the number of hours, total amount due, and tax rates to the client. Therefore, you are sending an invoice to your client once your work is completed from your end or in standard terms when the service is delivered. The same applies to the product category. 

Is the invoice sent after the payment is received?

No, the invoice is sent once the products or services are delivered to the client. The invoice is issued to demand payment from the customer or the client. 

Invoices are classified into due, paid, and canceled invoices. The invoice that is paid is called a paid invoice. Invoices that are due for payment are known as due invoices. Invoices that are canceled declined, or discarded are known as canceled invoices. 

Today, we have different online invoicing software that helps you create your invoices and track payments online on mobile. Moon Invoice, an online invoicing app, helps you create multiple invoices online to get paid faster. Therefore, you can manage to send invoices via both desktop and mobile without worrying about the payments. Moreover, the app helps you track payments online and automates the recurring invoices on behalf of your business.

What is a receipt?

So, here comes the major description for receipt vs invoice clarification. A receipt is an important business document. The seller generates it for the buyer once the payment is received. Like an invoice, a receipt also contains all the information about the sale, including the product or service, quantity, price, tax details, payment mode, and date. 

Example of Payment Receipt

Payment Receipt- Receipt vs invoice

There are different types of receipts, including sales receipts, payment receipts, travel invoice receipts, expense receipts, salary slips, tax return receipts, purchase receipts, etc. All these receipts are proof that the payment has been received against the invoice issued by the seller. 

Receipt vs invoice: What’s the difference?

As we learned above, both invoices and receipts are two different business documents. A receipt is issued against a paid invoice, whereas an invoice is issued as proof of sale. There is nothing in common between an invoice and receipt except that it carries the same product or service deal information. So, this makes a receipt vs invoice definition. 

Are paid invoices called receipts?

No, Paid invoices are known as ‘settled invoices.’ Just as the bills are called settled bills after the payment, likewise invoices are known as settled invoices once the payment is received. And, when the customer asks for the proof of document from the seller for the payment, the seller issues a receipt. It marks one of the differences between receipt vs invoice. 

How to generate an invoice using online invoicing software?

Hope there is no confusion falling between receipt vs invoice. For generating an invoice online, you need to have an online invoicing maker. Moon Invoice is a complete pack of invoicing software that helps generate commercial invoices, recurring invoices, proforma invoices, and credit notes. You can download it on your Mac, Windows, Android, and iOS devices. Also, you can have quick access to Moon Invoice using the web version. 

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Moon Invoice also has a feature called due and paid invoice. Small business owners can use Moon Invoice to generate quick, professional invoices and mark them as due, paid, or canceled with a single click. Learn more about how you can generate multiple invoices and get paid faster with Moon Invoice. 

How to send quick payment receipts?

For generating quick payment receipts via receipt maker, you need to mark your invoices as paid. Later for the paid invoices, you can generate or issue a receipt known as a payment receipt. With Moon Invoice, online invoicing software, you can generate quick payment receipts using the invoice tab. You can either download any software or access the web version for issuing, emailing or printing the payment receipts. 

Receipt vs invoice: How does Moon Invoice help?

Moon Invoice is one of the most talked-about online invoicing software today. You must have learned about invoices and receipts earlier, but when you access the Moon Invoice app, you have more fun creating invoices as the app offers 66+ readymade invoicing templates. 

With Moon Invoice, you can generate, share, download and print both invoices and receipts on the go. You can mark it as due, paid, or canceled to keep your books of accounts updated. For more details on how invoicing can be easy and fun with Moon Invoice, get our app on your smartphone, Windows, or Mac. Write your queries at for more details.