Invoice vs receipt

Invoice

An invoice is a request for payment. It normally describes what was supplied, the amount due and the payment terms.

Receipt

A receipt generally acknowledges that a payment has been received. It can help the payer keep evidence of the transaction.

Simple example

A freelancer completes a design project and sends an invoice for ₹25,000. After the client pays, the freelancer can issue or provide a receipt acknowledging the payment.

Which should you create?

If you are asking a customer to pay, start with an invoice. If you are documenting money already received, a receipt is usually the more natural document.