A payment receipt, also known as a receipt of payment, is an accounting document given by a business to its customers to serve as proof for either partial or complete payment for goods or services. Therefore, the payment receipt is produced after every sale. Moreover, it plays a vital role in the sales communication process plus useful to both buyers and sellers. When a buyer is looking to exchange a product or make a purchase return, they should produce a receipt of payment to verify that they bought the goods from the specific seller.
What information is contained in a payment receipt?
There is no set rule stating the information that needs to be included in the payment receipt. However, the details that are often found in this document are;
- The date of payment: This was the date when the buyer made a partial or full payment for the goods or services.
- Sum amount received: This is the exact amount the buyer paid to obtain the goods or services from the seller.
- The seller’s details: Specifics about the vendor selling the goods or services.
- Quantity purchased: The volume of goods bought by the buyer.
- An optional logo
- The amount remaining due: The amount the buyer is still due to complete payment.
- The original invoice number
What is the difference between the payment receipt and the sales receipt?
There are distinguishing differences between the sales receipt and the payment receipt. The receipt of payment is proof of payment by the buyer, whereas the sales receipt is a payment request by the seller if payment by the buyer is still due. Therefore, the payment receipt is more useful to the buyer to serve as proof that the seller received their payment.
In contrast, the sales receipt is useful to the seller, hence used for accounting purposes. It usually contains crucial information, including the analysis of the taxes and costs involved plus relevant business information. Furthermore, the sales receipt contains a unique receipt number as well as several other strict requirements.
Payment Receipt Templates
Payment Receipt Template 01
Payment Receipt Template 02
Payment Receipt Template 03
Payment Receipt Template 04
Payment Receipt Template 05
What is the importance of issuing a receipt of payment?
Payments receipts play an essential role in providing customers with information, helping with internal accounting, and the documentation of purchases. Some of the vital functions of a payment receipt include;
Useful during returns and exchanges: When a buyer gets a product that is defective or not the desired quality, they can return it if they have a payment receipt. Inside this receipt, relevant information about the return policy is included; for instance number of days after purchase that goods can be returned to the seller.
Information about the customer: payment receipts help to ensure smooth communication between the buyer and seller. This is made possible as it includes all the essential details on the purchase of goods or services from the seller, such as the number of products bought, taxes, date of purchase, and taxes. Therefore, it helps ensure there is no disagreement between the involved parties as all details are laid out.
Internal accounting: Sellers keep copies of the payment receipts as these allow them to keep an accurate track of the sales as well as revenue. Thus, if an issue arises in the future, you can always refer to the receipt of payment to clarify matters.
After reading through this article, you now have an idea of what a payment receipt is and its importance to the business. Therefore, communication between the sellers and buyers is streamlined thanks to this accounting document.