Understanding the Difference Between an Invoice and a Receipt

Before diving into the verification process within Docyt, it’s critical to distinguish between an invoice and a receipt. An invoice is issued by the seller either before or after the provision of goods or services, listing details such as item descriptions, quantities, prices, and total cost, along with any taxes or fees and payment terms. It serves as a request for payment and a record of the sale, and in some cases, can act as a legal instrument for payment obligations.

A receipt, conversely, is given post-payment, confirming that the seller has received the payment. It details the transaction date, paid amount, payment method, and purchased items. Receipts act as proof of purchase for the buyer and are often necessary for product returns, exchanges, or warranty services.

In essence, invoices are for requesting payment; receipts confirm payment receipt. This fundamental distinction is why Docyt offers separate modules for managing invoices and receipts.