A receipt is a written acknowledgment issued by a seller to the buyer stating that a specified amount of money, either partially or in full, was received as payment for goods or services provided (transaction).
It acts as proof that an invoice has been partially or fully paid. This way, the seller uses it as a record for keeping track of transactions made in a business, which is a crucial aspect of running a business. They are also a significant instrument in accounting, auditing, and filing tax returns.
Additionally, they are also used in handling matters related to warranties and refunds and can easily present all your transaction history to the audit team. These days, they are commonly issued electronically. Physical receipts are only issued when the customer does not provide their email.
A template is a blank form designed in a user-friendly manner to enable sellers to create payment receipts every time they need them at their convenience. The template will typically have blank spaces outlining all the fundamental components. Once completed accordingly, it creates an actual one. These templates can be obtained for free from the internet or from software such as MS Word. Templates are recyclable and usually customizable.
tip
The IRS directs that all businesses should keep these for at least three years. However, receipts for any tax year in which the business made a loss should be kept for seven years.
The following are a few standard templates belonging to different types that you can download and use with ease:
Invoice V/S Receipt
An invoice is issued before the customer makes any payment. An invoice outlines the amount of money a seller expects from a customer for goods or services sold. A receipt, on the other hand, is issued after a partial or complete payment has been made by a customer.
did you know
Although a receipt is not a packing slip and is not referred to as one, a packing slip contains similar details and can therefore be used as proof of payment or purchase. The major difference between them is the name the packing slip has the heading “Packing Slip” on it.
Components of a Receipt
Fundamentally, most receipts have the same core items or components. These fundamental components should appear on the document, regardless of the transaction made.
Therefore, the following components should be prioritized, whether one uses a template or chooses to craft a personalized one:
- Business/seller information: This section outlines relevant information about the seller. This includes the business name, mailing address, phone numbers, email addresses, logo, and website.
- Customer information: Customer information must be included to clarify who made the payment as outlined in the document. Information provided in this section includes the customer’s name and address information.
- Date: The date of the transaction (when the payment was received) should be outlined. The date should have the day, month, and year.
- Unique number: Each one typically has a unique identifier (serial number). This number is vital for filling purposes and monitoring progress.
- The amount received: The total amount received should be specifically declared. It should also be shown if the payment was partial or in whole.
- Payment reason: It should break down the payment and state why the payment was made. This section contains a list of products or services, accompanied by a brief description of the products or services sold. VAT and discounts can be outlined in this section.
- Payment method: There are multiple ways payment can be received. The specific payment method exchanged in the transaction at hand should be stated. The standard payment methods are cash or electronic (checks, credit cards, debit cards, etc.).
- Initials or signature: A section that prompts the seller or their representative to initial or sign an acknowledgment that they sold the said goods and received the quoted payment should be provided.
How to Make a Receipt in Microsoft Word
Using a template can be simple and effective in creating some for operating a business. MS Word, being a well-known software, is also used in creating receipts.
Follow the steps given to create a befitting document for your customers with MS Word:
Step 1: Launch word and select the preferred template
The first step is to launch Word and create a new document. Go under the “File” command and click on “New.” Scroll down in the templates section to find “Receipts” or search for it in the search space. Click on it and a variety of different types will appear. Select the most suitable version of it and click “Download.” The template will appear in Microsoft Word.
Step 2: Fill in the details
Date
Afterward, indicate the date of the transaction. Ensure to capture the exact date when the payment was received, as accuracy is pertinent for record-keeping purposes.
Number
Then indicate the serial number appropriate for the transaction in question. For example, the number can be based on transactions made in a year or month or on the type of item sold.
Amount received
Declare the total amount of money that was received for the transaction. State if it was a partial or full payment. If it was a partial payment, remember to indicate the remaining balance.
Transaction details (what was purchased)
Next, indicate the items that were sold to the customer for the quoted amount of money. When listing the items, include a brief description that provides the type, quantity, and other descriptive information.
Received by
Under the “Received By” section, state the person who received the payment. This will usually be the seller or the cashier in some cases. Provide the full names of the receiving party.
Received from
Next, under “Received From,” declare who paid the specified payment. It is important to note that it does not necessarily have to be a customer. Some customers have other people, like assistants, financiers, and banks to make payments on their behalf.
Payment method
The next section is to declare the payment method used by the customer to make the payment. It can be cash, checks, credit cards, etc. Indicate accordingly.
Check number
If a check was used as the preferred payment method, supply the check number. Please do not disregard this information, for it might be helpful later, especially in cases where the check bounces.
Credit card details
Lastly, for payments made through credit cards, provide the credit card details. This information is used to prevent fraud cases if a customer chooses to use someone else’s credit card; the receipt can be used as part of the paper trail.
Free Templates
Following are some free downloadable templates for you:
Receipt templates by type
Business Receipt
A business receipt acknowledges that a fee was acquired for a service/product supplied to a company/business. This type of receipt is required when the company asks for a refund or to return a purchase. It may also be needed to verify the legality of purchase for tax purposes.
Download: Microsoft Word (.docx)
Car (Vehicle) Sales Receipt
A vehicle receipt is used for transaction payments related to vehicles. This could be the sale of any vehicle, rental, or any services provided with a vehicle. It is issued once the full payment has been made. State DMV offices ask for the document before registering vehicles.
Download: Microsoft Word (.docx)
Cash Payment Receipt
A cash payment receipt is issued as proof of any money/currency paid in cash to purchase a product or service. It acts as the only proof that a purchase was made with physical currency as there is no electronic evidence of such a transaction in that case.
Download: Microsoft Word (.docx)
Cleaning Receipt
A cleaning receipt is provided to a client as proof of the successful completion of cleaning services. It is issued to different cleaning service providers such as dry cleaners, house cleaning, carpet cleaners etc.
Download: Microsoft Word (.docx)
Credit Card Authorization Receipt
A credit card authorization receipt is a written consent by a credit cardholder to give third-party permission to make payments using the credit cardholder’s credit card. Authorization can be given as a one-time permit or recurring.
Download: Microsoft Word (.docx)
Delivery Receipt
A delivery receipt is a written acknowledgment issued after a product/service is delivered to the clients and payment has been made. This receipt applies to the delivery of different products ranging from food, clothing, machinery etc.
Download: Microsoft Word (.docx)
Donation Receipt
A donation receipt is issued to a donor when they donate, and the charitable organization receives it. The donation must, however, be $250 or more. The issued party can use it to claim donation tax deductions.
Download: Microsoft Word (.docx)
Earnest Money Deposit Receipt
An earnest money receipt is used in real estate matters where it acts as proof that a buyer paid earnest money (deposit) to the seller intending to buy/purchase a property. The earnest money receipt is given once earnest money has been paid and binds the buyer and the seller to the purchase agreement.
Download: Microsoft Word (.docx)
Event Payment Receipt
An event payment receipt is given to the guests/attendees after buying the tickets to an event. The document outlines any services billed to the attendee and the total amount paid. It is used in different types of events, such as conventions, art/film festivals, galas, seminars and conferences, fairs, etc. Some events are tax-deductible, hence the need to issue the receipt.
Download: Microsoft Word (.docx)
Hotel Receipt
A hotel receipt proves a guest paid a specified amount to stay in a hotel. It can be used sometimes to determine if the guest can utilize the facilities offered by the hotel management. It also indicates additional charges for services such as parking, food services, extra amenities the guest paid for during their stay.
Download: Microsoft Word (.docx)
Itemized Receipt
An itemized receipt indicates the list of the items purchased by the client and is issued when the payment has been made. The document must also give a description of the items, quantity, and tax/discounts apply to the items.
Download: Microsoft Word (.docx)
Medical Bill Receipt
A medical bill receipt is issued by a doctor or a hospital to a patient upon the clearance of the medical bill. It outlines all the services offered, medicine administered, procedures used on the patient, and the price of each.
Download: Microsoft Word (.docx)
Rent Receipt
A rent receipt proves that a tenant has paid the monthly rent, and the landlord issues it. Any utilities and rent-related bills should be outlined. The landlord must sign the document.
Download: Microsoft Word (.docx)
Security Deposit Receipt
Security deposit receipt is issued to a landlord after the tenant has paid a security deposit payment. Tenants use the receipt to claim the deposit at the end of the lease.
Download: Microsoft Word (.docx)
Blank Receipt
A blank type is a receipt that contains all the necessary sections of a receipt and offers its users the flexibility to customize it in any way according to the business requirements.
Download: Microsoft Word (.docx)
Taxi/Rideshare Receipt
Taxi share receipt issued by the taxi driver or rider as proof that the passenger paid the specified amount for taxi services provided.
Download: Microsoft Word (.docx)
Different Ways to Scan a Receipt
With most businesses embracing the digitization of keeping records, sellers will often need to scan the receipt for safe storage in their database.
The two ways to go about this are:
- Scan using mobile apps provided to scan documents and store them in the cloud. Using mobile apps is fast and convenient, as it is a direct process.
- Scan using a digital scanner and store it in a storage device such as a USB drive.
Conclusion
A receipt is a written record of payments made by customers for goods or services sold. As a result, it is used for accounting, auditing, and tax purposes. Businesses additionally use them to monitor progress by recording which products or services are being sold more.A standard one contains the seller’s and buyer’s information, the amount received, the date of the transaction, the method of payment, the reason for payment, the unique number, and the signature.
Sellers can use templates to create them personally. Templates are blank forms that users can utilize to provide the necessary details. MS Word is an effective tool for using these templates. Ensure to use the most suitable template.Different types are used in business, so make sure to use a suitable type for the transaction at hand. For safekeeping, it is recommended that physical receipts be scanned and stored digitally.
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