An invoice and a receipt sit at opposite ends of the same transaction and are frequently confused because both are pieces of paper with amounts on them. The invoice asks for money and is issued before payment. The receipt confirms money was received and is issued after. Nothing else about them is the same, including what they are useful for.
The invoice
Issued by the supplier before payment, stating what was supplied, what is owed and by when, with a unique number and payment terms. It creates an obligation in the buyer's records and a receivable in the supplier's. It is a claim to be verified, which is why business buyers check it against what was ordered and what arrived before paying.
The receipt
Issued after payment, confirming that a specific amount was received against a specific obligation. It proves settlement rather than requesting it, and it is what a buyer relies on if the same invoice is chased again later. In business payables, the remittance advice does much of this job by telling the supplier which invoices a payment covered.
Why the confusion matters
Only in retail and expense contexts, where a till receipt sometimes functions as both. In business payables the distinction is clear and consequential: paying from a receipt would mean paying something already paid, and treating an invoice as proof of payment would mean assuming an obligation was settled when it was not.
Questions people ask about invoice vs receipt
Is a remittance advice a receipt?
It is the payer telling the payee what a payment covered, which serves a similar purpose from the other direction.
Which do we keep for tax purposes?
Retention requirements attach to the records of the transaction and vary by jurisdiction. Check your own obligations rather than assuming.
Can a document be both?
A till receipt in a cash sale effectively is, because the request and the settlement happen at once. Business transactions separate them.