Invoice or receipt?

M

MichaelTCT

Guest
Some customers make the full payment upon ordering, while some pay a 50% deposit. The payment could also be cash or check.

So, do I issue an invoice or receipt in those situations?
 
both.
you would have to produce an invoice and receipt anyway. you could always have the invoice show a line say €X paid, balance due on delivery or something.
 
susie1 said:
both.
you would have to produce an invoice and receipt anyway. you could always have the invoice show a line say €X paid, balance due on delivery or something.
Click to expand...

That's exactly what we do anyway.
 
I think the most important thing is that the accounting is done correctly. You'd want to be careful to show that your cash received is against future revenue (otherwise your gross margins will look too good, as presumably you still haven't incurred full cost of sales yet). It's down to accounting policies. (Some companies we deal with - particularly software, will not recognise revenue and won't issue invoices until their terms & conditions are signed - regardless of payments made).

Maybe ask your accountant. (I am not an accountant, by the way... above commentary just based on business experience)
 
Thanks for all the replies.

So both invoice and receipt should be issued for each transaction?
1st case with deposit: Invoice first, then receipt upon outstanding payment.
2nd case with full payment: Both invoice and receipt should be generated.

Thus the total amount of the invoices and receipts at the end of the day shall be tallied?
 
Bob_tg said:
Maybe ask your accountant. (I am not an accountant, by the way... above commentary just based on business experience)
Click to expand...
I'm self-employed and have just started my own business.
Therefore I have a lot to learn.
 
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