What is a receipt

A receipt is documentation of a transaction. For those who run a business, it becomes documentation of the purchase when you keep accounts.

A receipt that is included in an account must have correct and sufficient information to be valid documentation.

For example, you will receive a receipt after you buy an item in a store or after you have paid for your meal in a restaurant. If you shop online, you will also receive a receipt or an invoice for the purchase.

What makes a receipt valid documentation?

Any receipt or proof of purchase provided to customers must include the business name and an business identification number, the date of supply, details on the product or service, and the price.

Is receipt same as invoice?

An invoice and a receipt serve distinct purposes in the financial transaction process. An invoice is generated before the customer makes a payment, and is as a formal request for payment. In contrast, a receipt is issued after the payment has been received, serving as documentation of the completed transaction.

In other words, an invoice is requesting a payment from the costumer and while a receipt is the documentation of a payment already completed.