BUSINESS GUIDE
Receipt vs invoice , what is the difference and when do you use each?
A receipt confirms that payment has already been made , it is proof of a completed transaction. An invoice requests payment that has not yet been received , it is a bill. TunedBooks creates both from your phone: receipts instantly from any recorded sale, and invoices from the standalone Invoice Maker with line items, due dates, and payment tracking.
In this article
The core difference in one sentence
A receipt says "you paid." An invoice says "please pay."
That is the entire distinction. Everything else , format, legal requirements, timing , flows from this one fact. A receipt looks backward at a transaction that already happened. An invoice looks forward at a payment that has not arrived yet.
Most small business owners in Nigeria and the UK use the two words interchangeably, and that causes real problems. A customer who asks for an "invoice" after paying cash at the counter actually wants a receipt. A freelancer who sends a "receipt" to a client before the job is done has just told them the money already arrived , when it has not. Getting the document wrong does not just look unprofessional; it can create accounting confusion and, in some jurisdictions, tax compliance issues.
When to use a receipt vs an invoice
| Receipt | Invoice | |
|---|---|---|
| Timing | After payment | Before or at the time of requesting payment |
| Purpose | Proof that the customer paid | Request for the customer to pay |
| Who sends it | Seller to buyer | Seller to buyer |
| Payment status | Already paid | Not yet paid (or partially paid) |
| Common users | Retail shops, POS operators, market traders, restaurants | Freelancers, service businesses, wholesalers, B2B sellers |
| Legal requirement | Recommended but not always mandatory for small cash sales | Often required for B2B transactions and VAT claims |
| In TunedBooks | Generated from any recorded transaction via Share | Created in the standalone Invoice Maker |
A simple test: has the money already arrived? If yes, issue a receipt. If no, issue an invoice. If you are not sure, issue an invoice , it can be marked as paid later, but a receipt cannot be unpaid.
What each document must contain
A receipt should include
- Your business name (and logo, for professionalism)
- Date and time of the transaction
- Items or services purchased, with quantities and prices
- Total amount paid
- Payment method (cash, card, transfer)
- VAT breakdown, if applicable
- A unique transaction reference number
An invoice should include
- Your business name, address, and contact details
- Customer's name, address, and TIN (for B2B)
- A unique invoice number (TunedBooks generates these sequentially , INV-0001, INV-0002, etc.)
- Date of issue
- Due date , when payment is expected
- Line items with description, quantity, unit price, and line total
- Subtotal, VAT amount, and grand total
- Payment terms (e.g. "Net 30 days")
- Bank details for payment
In Nigeria, FIRS requires that invoices carry your Business TIN, customer TIN, and VAT at 7.5% for VAT-registered businesses. In the UK, HMRC requires VAT invoices to show your VAT Registration Number, per-line VAT rates, and the tax point date. TunedBooks handles both formats automatically based on your business's currency and location.
Professional documents in two taps.
Receipts from any sale. Invoices from the Invoice Maker. Both with your branding.
Set up your branding once
Before creating your first receipt or invoice, set up your business identity. This takes three minutes and applies to every document you generate afterwards.
Step 1 , Upload your business logo
- Go to Profile (bottom navigation on mobile)
- Tap your business name at the top of the screen
- Tap the logo area and choose Upload from Gallery
- Select your logo image , keep it under 1 MB for the best quality
- The logo now appears at the top of every receipt and invoice
Step 2 , Customise Receipt Settings
- Go to Settings → Receipt Settings
- Choose your Page Format:
- A4 Paper , professional full-page PDF for invoices sent by email or WhatsApp
- 80mm Thermal , compact format for POS receipt printers
- Professional Invoice , full-page format with status watermarks (DRAFT, PAID, OVERDUE)
- Add your business tagline (appears below your business name)
- Add a footer message , for example "Thank you for your patronage"
- Set your payment terms , choose from presets like "Due on receipt" or "Net 30 days", or write your own
- Toggle display options:
- Show Business Logo , on
- Show TIN , on for B2B invoices
- Show VAT Breakdown , on if you charge VAT
- Show Bank Details , on for invoices where customers pay by transfer
- Show E-Invoice Badge , on for compliance
- Tap Preview to see how your document looks
These settings persist across every receipt and invoice. Change them once, and every future document picks up the new branding automatically.
How to create a receipt in TunedBooks
This is the fastest path. You have already recorded a sale , the customer paid, the transaction is done, and now they want a receipt.
Generate a receipt from any transaction
- Open the Transactions tab
- Tap the sale to open Transaction Details
- Tap Share
- TunedBooks generates a PDF using your logo, tagline, footer, and all transaction details , amount, date, items, customer name, VAT breakdown
- Choose WhatsApp, Email, Print, or Save to Phone
Nothing to type. The receipt pulls everything from the transaction record. If you filled in the customer's name and TIN when recording the sale, those appear on the receipt automatically.
The format depends on your Receipt Settings. If you selected A4, the receipt is a full-page branded PDF. If you selected 80mm thermal, it generates a narrow roll-format receipt ready for a POS printer.
How to create an invoice using the Invoice Maker
Use the Invoice Maker when you need to bill a customer before the work is done, or when payment is expected on terms. The invoice lives independently from your daily transactions and tracks its own payment status.
Create a standalone invoice
- From the main menu, tap Invoice Maker
- Tap "+" to create a new invoice
- Add line items , for each item enter a description, quantity, and unit price. The running total calculates automatically as you add lines.
- Select a customer , search existing customers or add a new one with name, phone, email, address, and TIN
- Set a due date , this enables overdue tracking
- Choose a VAT category if applicable (standard, zero-rated, or exempt)
- Tap Save as Draft to keep working on it, or tap Share to send it immediately
TunedBooks assigns a sequential invoice number automatically (INV-0001, INV-0002, and so on). The professional format includes a status watermark , DRAFT, SENT, or PAID , rendered diagonally across the page at low opacity so it is visible but does not interfere with the content.
When the customer pays
- Open your Invoice List (main menu → Invoice Maker)
- Tap the invoice
- Tap Mark as Paid
- TunedBooks automatically records an income transaction for the full amount , you do not need to go to the Transactions tab and enter it separately
- The invoice status changes to Paid and the watermark updates
- Tap Share again to send a payment confirmation to the customer
This is the critical difference between a receipt and an invoice in TunedBooks. A receipt is generated from a transaction that already exists. An invoice creates its own transaction when marked as paid. Both feed into the same profit report , nothing is entered twice.
You can also Duplicate an invoice for recurring clients, Edit it while it is still in Draft status, and filter your Invoice List by status: Draft, Sent, Paid, and Overdue.
Choosing the right format , A4 vs thermal
| A4 / Professional Invoice | 80mm Thermal | |
|---|---|---|
| Best for | Invoices, email, WhatsApp, formal records | Counter receipts, POS printers |
| Size | Full page (210 × 297 mm) | 80mm wide, variable length |
| Logo | Full-size at the top | Scaled to fit 80mm width |
| VAT layout | Per-line VAT rate columns (UK), full VAT block (Nigeria) | Summary total only |
| Bank details | Full block with account number, sort code | Condensed or hidden |
| Status watermark | Yes , DRAFT / PAID / OVERDUE at 18% opacity | No |
Switch between formats in Settings → Receipt Settings → Page Format. You can change it any time , the setting applies to the next document you generate, not retroactively.
Receipts for the counter. Invoices for the client. Both from one app.
Free to start. No card required.
Frequently asked questions
What is the difference between a receipt and an invoice?
A receipt confirms that payment has already been made. An invoice requests payment that has not yet been received. A receipt says "you paid". An invoice says "please pay". Both are legal business documents, but they serve opposite purposes and are issued at different points in a transaction.
Can I use TunedBooks for both receipts and invoices?
Yes. TunedBooks generates receipts automatically when you record a sale and tap Share. For invoices, use the standalone Invoice Maker to create an invoice with line items, a due date, and customer details. Both pull your logo, tagline, and tax details from your Receipt Settings.
Do I need to issue an invoice if the customer already paid?
Not always. For walk-in cash sales, a receipt is sufficient. However, some B2B customers require a formal invoice for their own records even after payment. In those cases, issue an invoice from the completed transaction using the Share button , TunedBooks generates it from the existing transaction data.
Is a receipt legally valid without a company logo?
In most jurisdictions, a receipt is valid as long as it contains the business name, date, items or description, amount, and payment method. A logo adds professionalism and brand recognition but is not a legal requirement. TunedBooks lets you toggle logo display on or off in Receipt Settings.
What format should I use , A4 or thermal receipt?
Use A4 for professional invoices sent by email or WhatsApp , these are full-page PDFs with your logo, line items, and tax breakdown. Use 80mm thermal for POS counter receipts printed on a receipt printer. TunedBooks lets you switch between formats in Settings, and you can set a default for each situation.