An invoice is generated before the payment has been made, while a receipt is made after the payment has been done. In addition, an invoice contains more legal details than a receipt does. A nice thank you note or message for the customer.Īn invoice is generated to request payment for several things, whereas a receipt is created to act as proof of a payment that has been made for goods or services.Billing/Payment details: Bank name, mode of payment.The date when the invoice was issued as well as the date when payment is due.List of the items/goods: Quantity, Price, total amount, etc.A unique serial number for each invoice.Customer’s details: shipping address, customer’s name, contact number, email, etc.Company details: Company name, logo, address, zip code, email, contact number, etc.Invoices make the process of filing taxes convenient. Moreover, invoices are issued to manage cash flow and list out the terms and conditions for the customers. These help track and predict the cash entry and flow in the business and help assume when the sale is due.

In accounting, invoices are used to measure and keep a record of payments that are due, outstanding sales, or payments meant to be received.

Once the payment has been made by the customer the transaction is completed.

The customer receives the invoice and has to pay for the goods or services within a specified time.

The invoice is issued to the client electronically or by-hand.The details of goods or services, shipment address, shippers’ details, and customer’s details are all documented by a company manually or making use of software.A customer chooses a specific company or business and decides to shop goods or services from them.This has led to the process becoming easier and becoming more functional owing to its vitality for businesses. Fast-forward to modern times, invoices have been modernized into electronic, online, or mobile-based ones. Evidence of the usage of carved stone and clay invoices has been found as early as 500BC in the region of Mesopotamia followed by invoices made on paper or animal skin.

Microsoft office word invoice template