07/20/2026
QuickBooks Online question I get all the time:
“What’s a sales receipt… and when should I use it instead of an invoice?”
Here’s the simple breakdown 👇
A sales receipt is used when you get paid at the time of the sale.
There’s no balance due and nothing to track in Accounts Receivable.
Use a sales receipt when:
• The customer pays immediately
• You’re paid by cash, card, or ACH on the spot
• There’s no follow-up billing needed
Use an invoice when:
• You bill the customer now and get paid later
• The customer still owes you money
How to create a sales receipt in QuickBooks Online:
1️⃣ Click + New
2️⃣ Select Sales receipt
3️⃣ Enter the product or service
4️⃣ Choose the payment method
5️⃣ Select where the money is going (Undeposited Funds or your bank)
6️⃣ Save
Common mistake I see:
Creating an invoice and a sales receipt for the same sale — which results in duplicate income and confusing reports.
I wrote a full blog post explaining sales receipts, when to use them, and how they impact your books if you want to go deeper — it’s available on my website.
If QuickBooks ever feels more complicated than it should, you’re not alone. Most issues come down to choosing the right form for the situation.
