Comment by fauigerzigerk
4 days ago
>First major disconnect is that not every country uses invoices, but may use receipts instead. This is true for the USA for example, so many US devs (for example: Stripe in the early days) are not familiar with the concept of invoicing. Technically there is no difference between receipts and invoices, so if you're not familiar with the concept of invoicing, just read this post with /s/invoice/receipt in mind.
I find this hard to believe. An invoice is a request for payment. A receipt is proof/confirmation of payment. Invoices sometimes double as receipts (or rather the other way around) when the payment is made immediately. But how can a country not have something that represents a formal request for payment by some future time?
I don't even understand this from an accounting perspective. What would accounts receivable and accounts payable even mean without this distinction? How would you date the respective journal entries if there is no distinction?
> But how can a country not have something that represents a formal request for payment by some future time?
There are plenty countries where the vendor will charge the account of the customer, like a 'pull' mechanism. In many countries they'll use (or used) checks/cheques for that, or a different payment account like a credit card. The agreement for this would have been a contract. They may still use invoices for larger transactions, but they aren't always required by law.
I remember that in the old days, Google, Stripe, etc wouldn't send invoices, sometimes you'd get a minimal receipt message by email, but that was about it. This was particularly annoying for EU-based companies where there are minimal requirements for invoices and/or receipts.
Times have changed though. Most companies, including US-based, will now offer invoices that comply with most international regulations.
Except PayPal of course, for some reason they still seem to get away with not offering invoices. You'll have to download your monthly account overview in PDF from their merchant portal, and they just slapped the following text on it: "This statement may serve as a receipt for accounting and tax related purposes.".