Do you send an invoice before or after payment?
Understand the normal sequence between quotes, invoices, payments and receipts for different transaction types.
An invoice commonly requests payment and therefore comes before payment, while a receipt confirms payment and comes afterward. Deposits, immediate-payment sales and platform transactions can create different sequences.
Typical credit transaction
The seller completes the agreed billing milestone, issues an invoice, and the customer pays according to the agreed due date.
After payment, the seller's records should show the invoice as settled and a receipt may be issued when appropriate or required.
Deposits and advance payments
Projects may require a deposit before work starts. The documentation used for the request and the tax treatment of advance payments varies by jurisdiction.
Keep deposit records connected to the final invoice so the customer can see what has already been paid.
Immediate-payment transactions
Retail and online purchases can authorize payment at the same moment the transaction is created, so the customer may receive a receipt rather than a traditional accounts-receivable invoice.
Use the document sequence that accurately reflects what happened and meets local requirements.
This guide provides general educational information and is not legal, accounting, tax or financial advice. Requirements vary by country, industry and transaction. See how Docuivo tests its tools and calculations.