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Invoice vs. Receipt

Both an invoice and a receipt are non-negotiable commercial instruments that are used during the course of a transaction. An invoice is a document made by the seller and issued to the buyer to authorize the sale. It contains the details of the goods, including the name and address of the parties to the transaction, price, discount, date, and place of delivery.

In contrast, a receipt is a simple official acknowledgment that the goods or services have been received. It is prepared by the vendor and given to the consumer, and it is used to show ownership of the item. These terms are widely used in business parlance as they are related to operational activities. Many do not understand the meaning and difference between an invoice and a receipt and end up juxtaposing the two.

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