Sales Receipt vs. Invoice in QuickBooks:Understanding the Difference
Both sales receipts and invoicesare used in QuickBooks to record sales, but they serve different purposes basedon the timing of the payment and how the transaction is processed. Here's abreakdown of their key differences.
Use a sales receipt whenthe customer pays at the time of the sale (e.g., cash, credit card, or check).They are used in retail, restaurants, or service businesses where payment isimmediate. Records both the sale and the payment simultaneously. Automatically deposits the payment to aspecific account or undeposited funds, depending on your settings. The benefitof using the sale and payment into one step and does not create an openaccounts receivable (A/R) entry since the payment is immediate. This is commonlyused for point-of-sale transactions or services rendered immediately.
Use an invoice when the customer agrees to pay later,meaning you’re extending credit. They are used for businesses that provideservices or goods with payment terms (e.g., net 30 days).
This then records a sale but creates an open accountsreceivable (A/R) entry. The payment is recorded later when the customer paysthe outstanding invoice. Creating an invoice separates the sale and paymentinto two distinct steps and this help you tracks unpaid balances and due datesfor your customers. This is useful for business that need to track customerpayment history and generate accounts receivable aging reports.
