What’s the difference between an invoice, a receipt and an invoice-receipt?

An invoice is a financial document issued by a seller to a buyer before payment is made. Its main purpose is to formally request payment for goods or services delivered and to establish a legal obligation for the buyer to pay the specified amount by a certain due date.

The invoice typically outlines key details such as the goods or services provided, payment terms, due dates, and any taxes or fees applied. Issuing an invoice is a crucial step in the sales process, as it serves as the official record of the transaction and is often required for accounting and tax compliance.

After the customer completes the payment, a receipt must be issued to officially record that the invoice has been paid in full. This receipt is essential for both the seller's records and the customer's proof of payment. Check the following article to learn how to issue a receipt.

An invoice-receipt, on the other hand, is generated after the payment has been successfully collected from the buyer. This document serves a dual function: it confirms that payment has been received and simultaneously provides formal acknowledgment that the transaction is now complete.

The invoice-receipt not only documents the details of the original sale, but also offers the buyer proof of payment and closure of the financial obligation. This is particularly important for both record-keeping and legal compliance, ensuring transparency for both parties and simplifying the reconciliation of accounts.