A receipt proves a customer has paid you. It's useful for both of you: they can claim expenses or return goods, and you have a record for your books and taxes.
How to make a receipt
- Title it Receipt and number it. Use 'Receipt' and a unique number, for example RCT-0001.
- Add the date of payment. The date you received the money.
- Add your details and the customer's. Your business name and contact details; the customer's name (and address if needed).
- List what was paid for. Each item or service with quantity and price, plus any tax charged.
- Show the amount paid and how. The total received, the payment method (cash, card, bank transfer) and any reference number.
- Mark it paid and send a copy. Show it's paid in full (or the balance remaining) and give the customer a copy.
In the invoice generator, set the document type to Receipt. Leave "Amount paid" at 0 and it's marked PAID IN FULL; enter a smaller amount for a part payment and the remaining balance shows instead.
Receipt vs invoice
| Invoice | Receipt | |
|---|---|---|
| When | Before payment | After payment |
| Purpose | Asks to be paid | Confirms you were paid |
| Key date | Due date | Payment date |
| Shows | Balance due | Amount received and method |
Tips
- Keep your receipt numbers in one continuous sequence, separate from your invoices.
- For cash payments, a receipt is often the only record, so always give one.
- If you're registered for sales tax, VAT or GST, your country may require specific details on receipts (such as your tax number and the tax amount).
- Keep your own receipts for expenses too. Our bookkeeping basics guide shows a simple way to file them.
Questions
Is an invoice marked paid the same as a receipt?
It's often accepted as proof of payment, but a separate receipt with the payment date and method is clearer for both sides.
Do I need to give a receipt for a card or online payment?
The payment provider usually sends one, but many customers (and businesses claiming expenses) want a receipt from you that lists what they bought.
Can I make a receipt for a partial payment?
Yes. Show the amount received, the total, and the balance still owed.
General information, not legal, tax or accounting advice. Rules differ by country and state; check yours or ask a professional.
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