Invoice vs Receipt: What's the Difference?

The core difference

• An invoice is issued before payment and states an amount due with a due date
• A receipt is issued after payment and states an amount paid with the payment date
• An invoice creates an obligation; a receipt closes it

What each document contains

Both list the parties, the items and the amounts. Only the invoice carries a due date and payment terms. Only the receipt carries the payment date, the method used and the remaining balance if the payment was partial.

Handling partial payments

1. 1Keep the original invoice as the source of the total owed.
2. 2Record each payment against it with its date and method.
3. 3Issue a receipt for each payment showing the amount paid and the remaining balance.
4. 4Mark the invoice fully paid only when the balance reaches zero.