Invoice vs Receipt
An invoice requests payment; a receipt generally confirms that payment has been received.
When each document is issued
A seller usually sends an invoice when an amount becomes due. A receipt is issued after a payment transaction.
What each document should show
An invoice emphasizes charges, total due, and payment terms. A receipt emphasizes the amount and method paid and the payment date.
Do you need both?
For pay-later sales, businesses commonly issue an invoice and later record or provide proof of payment. Immediate retail transactions may only require a receipt.
Avoiding confusion
Label documents clearly and keep invoice status current so customers and bookkeeping records agree.
Put it into practice
Use a suitable small business invoice template, or follow the complete invoice creation guide.