Difference Between Sales Receipt Vs Invoice

Invoice and Receipt are source of document for accounting. An invoice is issued by a seller to the buyer. It helps us to identify both the side trading parties where as a sales receipt is issued after selling the product to the customer. It helps us to return or exchange goods.Invoice and Sales receipt are used for financial transaction.

Sales Receipt

It is a document which shows the date and time of purchase and a detailed information of shop name with address and phone number to contact. Sales related information such as purchase price, taxes and total amount. A sales receipt always have details of sellers information.

Invoice or Bill

Invoice or bill almost has the same meaning. The word invoice is chosen for the business  moreover not all the invoice can be bills. Once the purchase order is given by the customer, invoice is prepared based on the purchase order. It contains the detailed information about both the seller and the buyer.

Format of a Sales Receipt

It is a receipt received by the customer for the purchased goods one’s the money is paid. It act as an acknowledgement for the payment received. Each shop has their own format on sales receipt, information such as:

1. Receipt contains the shops title, phone number, address and date of purchase.
2. Name of the items purchased, quantity, total value with added tax.

If a customer wants to know how much need to be paid they should see the sales receipt. It also helps in exchange of goods.

Format of Invoice

A commercial should provide enough information for a customs and Border protection. There is no specific format for an invoice each companies has different formats but should contain minimum valid  information such as:

1. Clear description of the item.
2. Providing the quantity of item to be purchased
3. Value needs to be mentioned (Values  on both foreign currency and US dollars)
4. Detailed information of seller and the buyer with the contact number, address and tax details.
5. Invoice should include payment terms and delivery time.
6. The U.S. address of the person or business the goods are being shipped.

Invoice should follow the billing standard, always take time to ensure all the information mentioned are perfect.Sales receipt and invoices are important for taxable sales to income tax department.