Guides · Invoicing
Invoice vs receipt
An invoice and a receipt mark two different moments. An invoice is a request for payment for a supply; a receipt is proof that the payment was made. One comes before the money, the other after.
What each document proves
An invoice records what was supplied and states what is owed — it is the demand. A receipt records that a payment was received against that demand — it is the acknowledgement. Together they close the loop between a sale and its settlement.
A paid invoice and a receipt point at the same money from two sides: what was due, and what was actually paid.
Why keep both
Keeping only invoices tells you what should have been paid but not what was. Keeping only receipts tells you money came in but not what for. A business needs both to tie each rupee received to the supply it settled.
This is also what makes a receivable trustworthy: an outstanding amount is the gap between the invoices raised and the receipts recorded against them.
How Lekha ties payment to the bill
Lekha tracks each bill from invoice through to payment, so a receipt is recorded against the invoice it settles and the outstanding amount is always the unpaid remainder.
Lekha records what your documents say and tracks the money on both sides — what you owe and what you are owed. It records and tracks; it does not replace your accountant.
Questions
- What is the difference between an invoice and a receipt?
- An invoice is a request for payment for a supply; a receipt is proof that a payment was made against it. One precedes the money, the other confirms it.
- Do I need both an invoice and a receipt?
- Yes. Invoices show what was owed and receipts show what was paid. Keeping both lets you tie each payment to the supply it settled.
- How does this relate to outstanding amounts?
- An outstanding amount is the gap between the invoices you raised and the receipts recorded against them — what is billed but not yet paid.