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)