The difference between a sale and a cash sale in Pure Cash Tracker

An invoice sale (or just a "sale" in Pure Cash Tracker, also known as a credit sale) is a type of sale in which the buyer receives goods or services before paying for them. The seller sends an invoice to the buyer, outlining the details of the transaction, such as the items purchased, the price, and the due date for payment. The buyer then has a certain amount of time to pay the invoice in full before the due date.

A cash sale, on the other hand, is a type of sale in which the buyer pays for the goods or services at the time of the transaction. This can be done with cash, a check, or a credit card, but the important thing is that the payment is made in full at the time of the sale.

The main differences is the timing of payment. With an invoice sale, the payment is due at a later date, whereas with a cash sale, payment is made immediately.

In Pure Cash Tracker, when a cash sale is chosen, the app will automatically create both an invoice and a receipt for the full amount of the invoice, as it has been paid at the time of sale. When a sale is selected, only an invoice is generated so that a receipt can be input by users at a later date against the outstanding amount.

One other difference between a sale and a cash sale is the level of trust required between the buyer and seller. With an invoice sale, the seller must trust that the buyer will pay the invoice on time, while with a cash sale, the trust requirement is reduced as payment is made at the time of the transaction.

In conclusion, while both invoice sales and cash sales are common ways of conducting business, they differ in the timing of payment, level of trust required and accounting treatment. Businesses should carefully consider which type of sale is most appropriate for their needs and the needs of their customers.