A payment receipt is a formal document issued by a business or organization as proof of partial or full payment made to the business for goods purchased by customers.
Payment receipts are proposed to provide the client with proof of payment for goods or services that they have received. The receipt is used to show the amount that a particular customer has paid. They are issued whenever there has been an exchange involving money and a good or service, whether it’s food or getting your vehicle repaired. It’s proof that the transaction occurred and what was involved in the transaction.
Basic Receipt Templates
Different Common Receipt Types
Different receipts are issued under various circumstances and as such the receipts tend to have slightly differing structures. These generally may include cash receipts, rent payments, and deposit receipts, among others.
A few different templates with their specific purposes mentioned along have been provided below for your additional ease.
Business Receipt Template
Download: Microsoft Word (.docx)
Car Vehicle Sales Receipt Template
Download: Microsoft Word (.docx)
Cash Payment Receipt Template
Download: Microsoft Word (.docx)
Cleaning Receipt Template
Download: Microsoft Word (.docx)
Credit Card Receipt Template
Download: Microsoft Word (.docx)
Delivery Receipt Template
Download: Microsoft Word (.docx)
Deposit Receipt Template
Download: Microsoft Word (.docx)
Donation Receipt Template
Download: Microsoft Word (.docx)
Earnest Money Receipt Template
Download: Microsoft Word (.docx)
Event Payment Receipt Template
Download: Microsoft Word (.docx)
Hotel Receipt Template
Download: Microsoft Word (.docx)
Itemized Receipt Template
Download: Microsoft Word (.docx)
Medical Bill Receipt Template
Download: Microsoft Word (.docx)
Paid In Full Receipt Template
Download: Microsoft Word (.docx)
Book Payment Receipt Template
Download: Microsoft Word (.docx)
Rent Receipt Template
Download: Microsoft Word (.docx)
Sales Receipt Template
Download: Microsoft Word (.docx)
Security Deposit Receipt Template
Download: Microsoft Word (.docx)
Taxi Receipt Template
Download: Microsoft Word (.docx)
How and When to Send
A receipt should be issued to the buyer by the business as soon as payment for goods and services have been received, either through cash or other acceptable means recognized by the business.
A business or entity may print the receipt or issue one that is handwritten to the customer after receiving payment for goods and services. A business can send a pdf version of the receipt via email as possible to provide the customer with the documentation of their purchase.
Reasons to Issue it
There are several good reasons to issue a receipt when money is exchanged for a good or service. The main one involves proof. No matter if you’re purchasing a goldfish or winter coat, it is evidence that you exchanged the correct payment for the item received.
Another good reason may be for tax purposes. Here, the receipts, such as property tax payments are crucial when it comes to proving that you’ve paid them. Other examples are the receipts involving medical expenses or business expenses. If you’re claiming transportation as a deductible, then you’d need receipts from plane tickets, taxis, or other ride-sharing services such as Uber.
Other payment receipts to keep include:
- Childcare expenses
- Work-related expenses
- Self-employment expenses
Components of a Receipt
Several distinguishing components are included in a receipt, and the details can be found in different parts of the receipt.
Common elements highlighted include:
- Date and time of the transaction: The date and time of the transaction refers to the exact moment money was exchanged for the good or service.
- The business name and address should be captured at the top of the receipt along with the business logo.
- The name and address of the buyer should be included to help the business to know where to deliver goods that are purchased. An online business that has delivery services would know where to send the goods that a customer buys in case they make a future order.
- The receipt number is often generated by an automated system, where each receipt has a unique identifier. The business can use the receipt number when it comes to auditing since it will be easier to identify the amount paid for that receipt.
- The price of goods or services section indicates the cost of the goods purchased by an individual or organization.
- Taxes, subtotal and total: this section includes the total of the goods and services that were offered by a business. Taxes such as value-added tax (V.A.T) on an invoice show the amount of total tax that was charged for the goods. The total shows the amount after adding the subtotal and the tax to get what the customer should pay for the goods and services
- The transaction detail section includes details such as the:
- A transaction number is critical when it comes to a store controlling its inventory. It also provides the purchaser with further proof of the transaction.
- Amount paid in a receipt shows the details of what a customer paid for in a particular transaction. The business uses this information for its bookkeeping records.
- The method mainly highlights the means that the customer used to make payments for the goods and services they received. The methods may include several ways, such as the use of online payment systems, cash or through banker’s cheque.
- The reason is mentioned in the transaction section to state the goods or services paid for by the buyer in case of returns when the goods turn out to be faulty. The customer can prove the item they are returning is the one mentioned on the receipt.
- A signature or initials of the seller is featured in the receipt to verify the sale and make the receipt a viable legal document used as proof of payment.
Payment Receipt vs Sales Receipt
As previously stated, a payment receipt is as its name implies: A record of the amount of payment made in exchange for a good or service. The money has already exchanged hands at the point of purchase. You can also have receipts for items kept on layaway, even if the item was not received, as you are making payments toward the item.
In contrast, a sales receipt is also known as an invoice and is requesting payment. Invoices will have a detailed list of what was involved.
EXAMPLE
The invoice of a contractor might include the number of hours for labor, how many cans of paint, new tools, etc.
There are some notable differences and distinguishing factors when it comes to receipts and invoices.
Here is the summary of the major differences:
| Payment receipt | Invoice |
| A receipt is issued once the goods or services have been paid for by a customer or entity. | An invoice is issued to clients or buyers by the sellers before payment for goods services are made to request for payment. |
| A receipt shows details such as the amount paid inclusive of the mode of payment used by a customer. | An invoice shows details of the total amount that is due for payment by the customer or entity receiving the goods. |
Payment receipt vs. Packing slip
There are several similarities when it comes to the packing slip and a receipt since they have almost similar details. However, there are some notable differences between the two since a packing slip is not recognized as a receipt but can be used to show evidence of purchase. A packing slip is used when packing the goods that a client or customer has purchased while a receipt is used to show the payment made and the prices of goods and services purchased by a customer.
A packing slip is titled ‘Packing slip’ on top, which is a notable difference that distinguishes it from a receipt. Some of the similarities between a packing slip and the payment receipt are that both contain the name and address of the customers, date of purchase and name and address of the business, packing slip number, items included, and their quantities and price.
Conclusion
Receipts are essential in a business since they help in keeping records of goods and services sold to customers. The receipts ensure that the business gives the correct details of the sales that they have made when it comes to auditing and taxation purposes. The receipts also have a role to play in the case that a dispute arises between a business and its clients.
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