Invoice & Receipt - What's The Difference?

J

Jones

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Invoice & Receipt - What's The Difference?

At work, sometimes I see receipts which are filed away and at the top of these receipts (they're all from different companies) sometimes they are called a "receipt" and sometimes they are called an "invoice".

Is there any difference, as they all just appear to be receipts?
 
Isn't an invoice a request for payment while a receipt is acknowledgement of the actual payment?
 
I think..

I think and I may stand corrected, that the modern term for request for payment is a Bill or Bill of Costs.

This should not contain a vat number (if registered), and should indicate that it is not a reciept for payment or such.

Only on payment and clearance, an invoice is issued for the amount paid, with your VAT number, if registered.

It is obviously difficult if the initial bill is called an invoice, the customer accounts (systematically) file for VAT rebate, and in the end the figure might be adjusted in the case of , dispute for example. It may then beindicated to the Revenue that you have collected, but not accounted.
 
Re: I think..

Hi Sparky

0's definitions are more accurate.

We send invoices to our clients. They are bills telling them how much they owe us. They pay these and that's it.

Receipts are issued for expenses where you have to pay on delivery - e.g. meals or taxis.

Your description may apply to some types or sectors of business. For example, "bill of costs" may apply in the construction sector. eircom.net issues a pro-forma invoice for renewals. If you do renew, they send you the formal invoice marked "paid".

Brendan
 
Invoice & Receipt - What's The Difference?

Thanks for the above info.

Brendan, you said "We send invoices to our clients. They are bills telling them how much they owe us".

Do your clients then keep these invoices as their receipts (for tax & accounts purposes). Or once they have paid the amount, do you then send them a receipt?

Does the invoice suffice as their receipt?
 
Stand corrected

Cheers......I'll try stay away from the abacus stuff from now on. It was just that there was nobody else here at the time and I decided to impart what little knowledge i have.....albeit arseways!
 
Google Define:Invoice

Hi Sparky,

I discovered the following very useful Google Search today.
Do a google search for define:invoice (italics mine) and you get a long list of definitions. You can use this to get a definition of virtually anything.



ajapale
 
Re: Google Define:Invoice

Hi Jones

No one sends receipts anymore. When people pay by cheque or electronic banking, there is a record there in case of dispute.

Brendan
 
Re: Google Define:Invoice

Most companies would send out a monthly statement, which would show each invoice sent and payment recieved - This provides a clear receipt.
 
Re: I think..

I'm not sure, but once an invoice is issued, you have to pass on the vat to the revenue. That is why eircomnet/indigo use pro forma invoices (churn is high, and residential customers can be slow to pay)- so it won't burn up cash. I think it was moree of an issue for indigo before it was bought by eircom.
 
proforma

in my experiance of proforma invoices they are issued to companies who do not have an account, therefore the goods are paid for in advance, limit bad debt.
 
Re: I think..

I'm not sure, but once an invoice is issued, you have to pass on the vat to the revenue.
Click to expand...
Not true. At the end of the bi-monthly period you would if you were on the sales invoice basis however many busineses are on the cash receipts basis so they pay the vat in the bi-monthly period that they actually get paid.

in my experiance of proforma invoices they are issued to companies who do not have an account, therefore the goods are paid for in advance, limit bad debt
Click to expand...
.
I agree.
 
Re: I think..

I think indigo were doing it on a sales invoice basis at the time-it's quite a while ago ..
 
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