The short answer
An invoice is a request for payment. A receipt is proof that payment has already been made. Businesses commonly send an invoice before payment and provide a receipt after payment.
The two documents can contain similar information, but they serve different purposes in a billing workflow.
Quick comparison
| Document | Main purpose | Typical timing | Common status |
|---|---|---|---|
| Invoice | Requests payment | Before payment | Unpaid, partially paid, or paid |
| Receipt | Confirms payment | After payment | Paid |
| Paid invoice | Shows a request that has been settled | After payment | Paid |
When to use an invoice
Use an invoice when a client owes money for work, products, or services. The invoice should show what was provided, the amount due, the due date, and how the client can pay.
Invoices are common for freelancers, agencies, consultants, contractors, wholesalers, and any business that gets paid after delivering work or fulfilling an order.
When to use a receipt
Use a receipt after you receive payment. The receipt records that the buyer paid a specific amount on a specific date, usually for a specific invoice, product, or service.
Receipts are useful for customer records, expense claims, tax documentation, and internal bookkeeping.