An acknowledgement receipt is a business document that verifies receipt of goods or services rendered. This document is used to track the movement of goods, services, cash, or documents from one individual to another. Once the recipient receives the goods or services, they had ordered, they should issue an acknowledgment receipt to the sender/ supplier/ service provider to indicate they have received the goods and in the right condition. The Bureau of Internal Revenue doesn’t recognize this receipt as a mandatory official document that should be exchanged between people doing business.
Invoice VS Acknowledgement Receipt
Although an invoice and an acknowledgment receipt are vital documents that are used in business transactions, they have some notable differences.
An invoice is a document that a seller issues to a buyer to request for payment; this is usually done before the buyer pays for the goods or services. This document contains essential details about the transaction, including the names and addresses of both the buyer & seller, price of the products, any discount, and also the date of the sale and place of delivery.
On the other hand, an acknowledgment receipt is a simple business document that is issued by the buyer/customer once the buyer receives their goods or when services are rendered. This document is proof that the buyer received the products in the agreed condition and quantities, as indicated in the invoice. It assures the seller that the goods arrived at the destination safely.
Basics contents of an acknowledgment receipt
An acknowledgement receipt should contain factual and accurate information about the transaction. It should be included:
Receipt title: Most businesses have specific receipts branded as “acknowledgement receipts.” This title should appear at the top center part of the receipt.
Date: Also indicate the date you’ve received the goods
Name of the company and address: Additionally, your business name and address should feature on the acknowledgement receipt. The company logo may also appear in the document.
Received by: This is the name of the individual who receives the goods.
Statement of acknowledgment: This is a simple description certifying that the goods were received in the right condition and quantities.
Signature: The person confirming receipt of the goods should append their signature on the receipt.
Business transactions between sellers and buyers must be held with utmost transparency. When a customer orders some goods from a supplier, the seller dispatches the goods alongside an invoice. Once the goods reach the agreed destination, the buyer needs to confirm receipt of the goods by sending an acknowledgment receipt to the seller. This assures the seller that the products reached the intended destination in the right condition and quantities.