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No, an invoice is not a receipt. To make the concept easy and understandable I would like to first explain the meaning of Invoice and Receipt followed by an example of each and Key differences between them. I would like to conclude my answer with a snippet of the Invoice and Receipt.
Meaning of Invoice
Invoice refers to a legal document issued by the person who is selling the goods and services to the person who is purchasing/buying these goods and services. An Invoice is issued to make payment. The person who sells goods and services is called a seller (or) vendor and the person who buys goods and services is called a customer (or) buyer.
Example- When we purchase any product from the online store (or) perform online shopping, then the seller of the goods (or) service provides an invoice to the customer thereby allowing the customer to make payment after the delivery of the goods.
Meaning of Receipt
Receipt refers to the acknowledgement of payment which states that seller (or) vendor of goods and services has received payment from the customer (or) buyer of goods and services. It is conclusive proof that payment has been made by the customer. In the case of transmission of goods, it acts as proof of ownership. It is also a legal document similar to an invoice.
Example- When you go to a grocery store (or) supermarket for purchasing various products, after making the payment the staff member gives you an acknowledgement. Thus this acknowledgement is known as a receipt.
Key Differences between Invoice and Receipt
The following are the major key difference between receipt and invoice
|S.No.||Point of Difference||Invoice||Receipt|
|1.||Meaning||Invoice refers to the request for payment.||Receipt refers to acknowledgement (or) proof of payment.|
|2.||Issue||An Invoice is issued before the payment is made.||A receipt is issued after the payment is made.|
|3.||Amount||An invoice displays the total amount which is due (or) to be paid.||A receipt shows the detailed amount which is already paid by the buyer.|
|4.||Payment||At the time of making payment, the invoice is given to the customer.||A receipt may be given to the customer (or) the third party after making the payment as proof.|
|5.||Usage||An invoice is used to keep a record of goods and services sold to the customer.||A receipt is used as an acknowledgement that the payment of goods and services is made.|
|6.||Benefits||I) It helps in the delivery of goods by keeping a track of goods.
II) It helps in predicting future sales.
III) It helps in providing better customer service.
IV) It helps the customers to grab amazing offers and discounts for early payment.
|I) It helps at the time of exchange or return of faulty goods.
II) It is generated digitally which saves paper and time.
III) It reduces the stress at the time of making tax payments.
I would like to add a snippet of the invoice and receipt for a clear and better understanding
Cash receipt of ABC Ltd is shown below