What an invoice has to do
It states an amount that is owed, who owes it, when it is due and how to settle it. Until it is paid it is an open item in two sets of records: yours as money expected, theirs as money committed.
What a receipt has to do
It records that a specific amount was received, when, and against what. Its job is proof, which is why a receipt names the payment method and the invoice it settles rather than repeating the terms.
The differences that matter in practice
- Timing: an invoice comes before payment, a receipt after
- Purpose: one requests, the other confirms
- Due date: an invoice has one, a receipt cannot
- Payment details: an invoice says how to pay, a receipt says how it was paid
- Numbering: they are separate sequences, and a receipt references the invoice it settles
Which is being asked for
A client asking for "an invoice for my records" after paying usually wants a receipt. A consumer asking for a receipt before paying usually wants an invoice, or a quote. Ask which side of the payment they are on and the answer is immediate.
Common questions
- Can one document be both?
- For an immediate cash sale, effectively yes — the document records what was sold and that it was paid at the same moment. For anything with terms, no: the two events are days or weeks apart and each needs its own record.
- Do I have to issue a receipt?
- Business to business, usually not, because the bank record and the paid invoice serve the purpose. For consumer sales, and any cash payment, issue one — cash leaves no other trace.
- What about a bill?
- "Bill" is the same document as an invoice, seen from the payer's side. Your invoice is their bill.