The only difference between cash and credit transactions is the timing of the payment. A cash transaction is a transaction where payment is settled immediately and that transaction is recorded in your nominal ledger. The payment for a credit transaction is settled at a later date. Try not to think about cash and credit transactions in terms of how they were paid, but rather when they were paid.
For example, you may buy some groceries at your local shop and pay for them in cash there and then, and that’s a cash transaction. However, what if you paid by card rather than cash? That will also be classified as a cash transaction because you paid immediately. Credit transactions are paid after the exchange of goods or services takes place and usually after an invoice for the transaction is issued.
So those businesses with a greater number of credit transactions will need to know how to write an invoice. The time taken before payment can vary depending on the types of businesses or even the industry in which the transaction occurs. Once again, when payment is finally settled for the invoice, it may be done with cash, card, or any other payment method, but it is still a credit transaction. (資料來源)
