An invoice is a request for payment, sent before the customer pays. A receipt is proof of payment, given after the customer has paid. The invoice says “this is what you owe and when”; the receipt says “this is what you paid, when and how”.
Both describe the same sale, so they look alike. The difference is the moment they are issued and what they prove, which matters for your records, your customer’s records and their taxes.
The difference at a glance
| Aspect | Invoice | Receipt |
|---|---|---|
| Purpose | Requests payment | Confirms payment |
| When it is issued | Before payment, usually after the work or delivery | After payment |
| Main figure | Amount due | Amount paid |
| Has a due date | Yes | No |
| Shows how payment was made | Shows how to pay | Shows how it was paid: card, cash, transfer |
| Typical use | Business-to-business sales, services, credit terms | Shops, on-the-spot payments, confirming an invoice was paid |
| In your records | An amount owed to you | Money received |
What an invoice contains
An invoice identifies you and your customer, gives a unique invoice number, lists the goods or services with prices, adds tax, states the total due, and sets out when and how to pay. The full list is in what to put on an invoice.
Delgado Auto Repair
2215 East Apache Boulevard Tempe, AZ 85281
service@delgadoauto.com
(480) 555-0158
delgadoauto.com
Invoice
- Invoice no.
- RO-10583
- Issue date
- Oct 1, 2026
- Due date
- Oct 1, 2026
- Terms
- Due on receipt
Billed to
Kevin Marsh
918 West 5th Street Tempe, AZ 85281
kmarsh@example.com
Vehicle
2019 Honda CR-V EX · VIN 5J6RW2H5XKL004417 · 68,412 miles
Amount due
$608.45
Due on receipt
| Description | Qty / hrs | Unit price | Amount |
|---|---|---|---|
| Parts | |||
| Front brake pads, ceramic | 1 | $89.95 | $89.95 |
| Front brake rotors | 2 | $74.50 | $149.00 |
| Parts subtotal | $238.95 | ||
| Labor | |||
| Front brake service, pads and rotors | 1.8 | $135.00 | $243.00 |
| Brake fluid flush | 0.8 | $135.00 | $108.00 |
| Labor subtotal | $351.00 | ||
| Shop fees | |||
| Shop supplies and disposal | 1 | $18.50 | $18.50 |
- Subtotal
- $608.45
- Total USD
- $608.45
Payment
Card, cash or check at collection.
Notes
Parts carry a 12-month / 12,000-mile warranty. Old parts available on request.
A repair invoice: it lists what was done and what is owed. Once paid, a receipt or a paid invoice confirms it. Mechanic template
What a receipt contains
A receipt identifies the seller, the date of payment, what was bought, the amount paid, how it was paid and, often, a receipt number. A till receipt is the simplest form. For a sale on credit, the receipt usually refers back to the invoice: “Received with thanks: $1,250.00 for invoice INV-0042, by bank transfer, on November 28.”
When you need each
- You did the work and the customer pays later: send an invoice. Send a receipt when they pay, if they ask for one.
- The customer pays on the spot: a receipt is enough. A café doesn’t invoice you for coffee.
- The customer pays a deposit: a receipt for the deposit, then an invoice showing the deposit deducted from the total.
- The customer pays in advance: some businesses issue an invoice first and a receipt on payment; others issue a single paid invoice.
Can an invoice be a receipt?
An invoice marked as paid, showing the date and method of payment, works as a receipt for most purposes. Many small businesses send exactly that: the same invoice, with “Paid” and the payment date added, instead of a separate document.
In Folio, enter the amount received in Deposit or amount paid. The invoice then shows the total, the amount paid and a balance due of zero, and you can add the payment date and method in the notes: “Paid in full by card on November 28. Thank you.”
Why the difference matters
- For your records: an invoice is income you are owed; a receipt is money you have received. Your accounts treat them differently, especially if you account on a cash basis.
- For your customer: businesses often need the invoice to approve the payment and the receipt (or a paid invoice) to claim the expense.
- For tax: in many countries, a buyer needs a valid invoice to reclaim VAT or GST; a till receipt may not be enough above a certain amount. Check the rules where you and your customers are.