An Itemized Receipt is a document that a seller (or payee) issues to a buyer (or payer) as proof of payment and goods bought.
The document contains a list of all the items bought and details any one-off charges that the buyer is paying for, the number of units bought for each item, and a rundown of any applicable discounts or taxes. Any seller (grocery stores, bookshops, restaurants, etc.) can use an Itemized Receipt.
A seller issues an itemized receipt to a buyer to finalize the purchase at the end of a purchase process. It is used as proof that the seller has received payment from the buyer for the listed items, and consequently, the buyer has become the legitimate owner of the items. The sales and purchase scenario can be business to business (B2B) or business to customer (B2C). In addition, itemized receipts are useful as evidence for both parties in the resolution of a dispute or disagreement regarding a sale.
How to Make An Itemized Receipt
There are specific details unique to various businesses which determine the makeup of receipts that these businesses issue. Itemized Receipts feature a number of details that may vary from business to business. However, some details are generally present on all itemized receipts. Such details include seller’s and buyer’s information, transaction details, date, amount of payment made, etc. A seller looking to make an itemized receipt can find information on each required component below.
Include transaction details
An itemized receipt should feature a receipt number and the date of issue. These details are very useful in tracking and identifying individual receipts when the need arises.
Add merchant’s/payee’s information
An important piece of information a seller should include on an itemized receipt is the seller’s information. This information attaches the receipt to the seller and proves that the receipt originated from the seller’s establishment. The seller information on the receipt includes the seller’s name, complete address, email address, and contact number.
Add payer’s information
The seller should add a section on the itemized receipt to collect the payer’s information, including the payer’s name (or company name), contact number, and address. If a person or business is making payment for another person or business, the receipt should have the names of the two parties. The reason for this information is to correctly identify the buyer and confirm the authenticity of a claim in a future purchase dispute.
Provide an itemized list
It includes the following:
- Description: When making an itemized receipt template, the seller should include a section describing the goods or services involved in the transaction. Each of these goods or services should be listed on separate lines.
- Quantity: The seller should indicate the number of items purchased right next to the description of the item. Having this detail on the itemized receipt helps to calculate the total cost of a particular item purchased, and it helps the seller keep track of his or her inventory.
- Price/unit: This section of an itemized receipt indicates the cost per unit of a particular item on the receipt.
- Line total: This is the total cost of each item on the itemized receipt, and the value is gotten by multiplying the price per unit of an item by the quantity of the item purchased.
Subtotal for products/services used
This section is the sum of all the line totals, i.e., the total cost of all purchased items before the seller applies any discounts or taxes.
Taxes and other fees
It includes the following:
- Discount: The seller should use this section to detail any discount afforded to the buyer. Discounts can be given for any reason determined by the seller.
- Sales tax: This section details the amount a buyer is required to pay as tax for the transaction.
There should be a section called “Final Total,” which is the total amount payable by the buyer. This final amount is gotten after the seller has applied the discount and sales tax to the subtotal.
Amount paid by a buyer can sometimes be different from the Final Total specified on the itemized receipt. This may be due to a purchase made on a credit or an outstanding amount owed by one of the parties. For this reason, the seller should make a section available that specifies the amount paid by the buyer.
Payment method can vary per buyer, and the seller has to specify this detail on the itemized receipt. Payment methods include cash payment, bank transfer, credit card, check, PayPal, etc., or a combination of any of these. Specifying a payment method on the itemized receipt will help the seller in the long run to keep track of their revenue sources.
Shipping charges, if any
If the transaction requires the seller to deliver the purchased items to the buyer, the seller should specify the delivery cost in the itemized receipt.
Related: Payment Receipt Templates
Itemized Receipt Templates
An itemized receipt template is a document with a predesigned format that a seller can use as a guide when creating a personalized itemized receipt for his or her business. It is particularly useful for sellers that sell multiple items, making it easy to specify payment details of all items bought on a single document.
Sellers can download various itemized receipt templates from here to assist them through the process of creating an itemized receipt for their businesses. The templates provided here are highly customizable, and sellers do not require any technical knowledge or experience. Using one of the provided templates saves the seller the time and money that would otherwise be invested in hiring someone to create the itemized receipt for their business.
Difference Between an Itemized Invoice and Receipt
- An invoice is a document that is used to request for payment while a receipt is a document that is used to prove a transaction and payment for goods and services has been done.
- Ordinarily, an invoice is issued before a transaction, while a receipt is issued after the transaction is complete.
- An invoice is a vital document that is used in tracking goods and services while a receipt acts as a confirmation for payment.
- An invoice indicates the amount due while a receipt records the total amount paid for the goods or services.
An itemized receipt is proof that a seller has received payment from a buyer for a set of items and that the items now legitimately belong to the buyer. This document can serve as significant evidence in a dispute that arises from the transaction. A seller looking to use the itemized receipt in their business should ensure that all the essential components are present in the document. A missing component can be detrimental to the seller if a dispute occurs concerning the transaction. To ensure this does not happen, sellers should consider using the itemized receipt templates provided on this page.