Business

Invoice vs. Receipt: Understanding the Crucial Differences

Any company’s record-keeping system would be incomplete without invoices and receipts. Businesses use invoices to record consumer money and receipts to prove that the customer paid for the goods or services.

Whether you’re a beginner or an experienced bookkeeper, knowing the difference between Receipts and Tax Invoices (ใบเสร็จรับเงินใบกำกับภาษี, which is the term in Thai) will help you choose the correct document format for your needs.

What Is Recept?

A receipt is an official document that a company issues to customers as proof that they have paid. Once the seller has received payment for the products or services, they will issue it. Also, having a receipt makes it much easier to return or exchange an item.

Next, let’s know what is a Tax Invoice (ใบกํากับภาษีคือ, which is the term in Thai) to see the difference between them.

What Is Invoice?

A tax invoice is a legal document that specifies the terms and conditions of a purchase or sale. Typical details include the parties’ names and addresses, a rundown of the services or goods bought, the amount paid, the price per unit, and any relevant taxes.

Invoices for taxes are necessary for some accounting and tax reporting tasks, and even the law can mandate it. It is critical for companies to keep precise financial records and to follow all tax regulations. Usually, an invoice will include

Other Differences Between Receipt And Tax Invoice

1. Purpose

Customers must pay for the services provided or goods delivered in full when an invoice is prepared and sent out. A customer’s receipt, meanwhile, is evidence of payment. It’s a helpful way to inform customers that their payment was successful.

2. Timing

In transactions between companies and their clients, invoices take precedence over receipts. The company informs the customer of the total amount due on the invoice, which details the applicable services or products. Recipients of receipts get this status once customers have paid their invoices in full.

3. Fundamentals

Despite their differences, invoices and receipts share many features. Because they are all issued by the same company, these documents share common elements such as the name, logo, and contact details. The invoice contains several specific characteristics, such as the customer’s name, invoice number, date, payment, quantity and price of relevant items or services, and the total amount owed. In contrast, a receipt will detail the sale date, items sold, any applicable discounts, and the final price paid by the consumer. That is why you will typically find more information in invoices.

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