What is Receipt? Simple Definition
Receipts and invoices are source documents in accounting. When a buyer and a seller conduct business transactions they are required to record or document it with both of these documents.
A receipt is document stating that payment has been complete in order to finalize the sale. It usually works an ownership proof and should contain the following information:
- list of goods or services
- price for goods or services
- credit equal to the owed amount
- tax rates appropriate for country and business
- total amount paid for the goods or services
- method of payment for the goods or services
Receipts contain information regarding buyers and sellers, varying, however to a certain degree. They usually have complete seller's information but the buyer's information is limited.
Essentially, an invoice is the seller's request for payment and receipt is the buyer's proof of payment.
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