Invoice vs receipt
An invoice asks for payment. A receipt proves payment has already happened.
Financial document guide
Choose the right document before you send it.
Invoices request payment. Receipts prove payment. Quotes and estimates propose work before it starts. Credit notes correct earlier invoices. Use this guide to pick the right document and create it in Invoity.
Need to get paid?
Use an invoice.
Already got paid?
Use a receipt.
Price before work?
Use a quote or estimate.
Correct an invoice?
Use a credit note.
Financial documents, explained
Each document has a different job. The table below gives search engines and humans the same direct answer: when to use it, when not to use it, and what it proves.
| Document | Use when | Do not use when | What it proves | Generator |
|---|---|---|---|---|
| Document InvoiceRequest payment after work, delivery, or a billing period. | Use when You have completed work, delivered goods, or need to collect a balance due. | Do not use when The customer has already paid in full, or the sale is still only a proposal. | What it proves Amount due, due date, line items, tax, payment terms, and seller/buyer details. | Generator |
| Document Tax InvoiceRequest payment while showing sales tax, VAT, or GST separately. | Use when The transaction needs a tax subtotal, tax rate, tax amount, and tax identifier. | Do not use when No tax needs to be shown, or the document is only a pre-sale estimate. | What it proves Taxable sale details, tax charged, business tax ID, and total amount due. | Generator |
| Document Proforma InvoiceShow expected invoice details before the sale is final. | Use when A buyer needs pricing for approval, shipping, customs, deposits, or budget signoff. | Do not use when You need to record final revenue or formally demand payment after delivery. | What it proves Expected items, prices, terms, and conditions before the final invoice. | Generator |
| Document ReceiptConfirm that payment has already been received. | Use when A customer paid and needs proof of payment for records or reimbursement. | Do not use when You are still asking for payment. Use an invoice instead. | What it proves Amount paid, payment method, paid balance, payer, payee, and transaction date. | Generator |
| Document Sales ReceiptRecord a completed itemized sale. | Use when A product or service was sold and paid at the point of sale. | Do not use when Payment is still outstanding, or you need a buyer order before fulfillment. | What it proves Sold items, tax, paid total, payment method, customer, and seller. | Generator |
| Document Cash ReceiptConfirm a cash payment with a written record. | Use when Cash changed hands and both sides need simple proof of payment. | Do not use when The payment was not received yet, or the transaction needs bank transfer details. | What it proves Who paid, who received cash, amount received, date, reason, and paid balance. | Generator |
| Document QuoteOffer a specific proposed price before work begins. | Use when You want the customer to approve a firm price within a validity window. | Do not use when The final scope is still uncertain. Use an estimate instead. | What it proves Proposed price, scope, validity date, and terms before acceptance. | Generator |
| Document EstimateGive an approximate cost before the final scope is known. | Use when The project may change after inspection, discovery, or client decisions. | Do not use when You are committing to a firm price. Use a quote instead. | What it proves Expected costs, assumptions, likely scope, and a non-final total. | Generator |
| Document Credit NoteReduce, reverse, refund, or adjust a previous invoice. | Use when An original invoice needs a correction, discount, return, refund, or partial reversal. | Do not use when You are issuing a new charge or simply confirming a payment. | What it proves Original invoice reference, credit amount, reason, and adjusted balance. | Generator |
| Document Purchase OrderLet a buyer formally order goods or services from a supplier. | Use when The buyer wants to authorize a purchase before the supplier invoices. | Do not use when The seller is requesting payment. Use an invoice instead. | What it proves Buyer authorization, supplier, requested items, quantities, totals, and delivery date. | Generator |
| Document Delivery NoteConfirm delivered goods without showing prices. | Use when Items are shipped or handed over and the recipient needs to confirm delivery. | Do not use when You need to request payment or show money totals. | What it proves Delivered items, quantities, delivery date, order reference, sender, and recipient. | Generator |
Common comparisons
These are the short distinctions people usually need before choosing a generator.
Quote vs estimate
A quote is a firmer proposed price. An estimate is approximate when scope or cost may change.
Proforma invoice vs invoice
A proforma invoice previews a sale before it is final. A regular invoice requests payment for a completed or billable transaction.
Credit note vs refund receipt
A credit note adjusts or reverses an invoice balance. A refund receipt confirms money was actually returned.
Purchase order vs invoice
A purchase order comes from the buyer before fulfillment. An invoice comes from the seller to request payment.
Delivery note vs invoice
A delivery note confirms quantities delivered. An invoice shows prices, tax, totals, and payment terms.
Frequently asked questions
What financial document should I send to get paid?
Use an invoice when work is complete, goods were delivered, or a recurring billing period is due. The invoice should include line items, totals, tax if needed, payment terms, and a due date.
Should I send a receipt or an invoice?
Send an invoice before payment to request money. Send a receipt after payment to prove the customer paid.
Should I use a quote or an estimate?
Use a quote when the price is intended to be firm for a set validity period. Use an estimate when the final amount may change because the scope is still uncertain.
When should I create a credit note?
Create a credit note when you need to reduce, reverse, refund, or correct an original invoice. It should reference the original invoice and explain the credit amount.
Is a proforma invoice legally the same as an invoice?
No. A proforma invoice is usually a preliminary document used before a sale is final. It should not be treated as the final payment demand unless local rules say otherwise.
Can Invoity create all of these documents?
Yes. Invoity supports invoices, tax invoices, proforma invoices, receipts, sales receipts, cash receipts, quotes, estimates, credit notes, purchase orders, and delivery notes.