In any business, receipts are the frequently used documents that are helpful for a business to document the transaction taking place between the business and its customer. A business may sell products or services in order to get paid.
Whenever there is money involved in any process, everyone should be careful while dealing. It is important to keep a document as proof that the transaction has been conducted successfully. Paying someone in advance requires a whole lot of trust and risk. The advance receipts in this scenario are very important.
When two parties are doing business together and payments are involved then the advance receipts are used. Apart from the retail products, almost all other forms of orders of commodities and services use this kind of receipt.
What is an advance receipt?
When a customer pays you in advance, he asks you to issue the advance receipt for his security. When the receipt is issued after taking the advance payment, the person cannot repudiate from having received the payment in advance.
When you purchase a commodity or hire a service that involves a large amount of money the advance receipts are used. These are also used when the business process is based on different stages of completion or the milestones of the process are based on time period. The mode of payment is predefined before the business process is initiated.
The information displayed in the advance receipt is as follows:
- The logo of the party receiving advance payment
- The name of the party receiving advance payment
- The contact information of the party receiving payment
- The receipt number or id
- Date when the advance payment was made
- Conditions of the advance payment
- Reason for the advance payment
- Amount of the advance payment
- The period for which the advance is for
- The name of the party giving advance payment
- The name of the person authorized to make an advance payment
- The name of the person authorized to receive an advance payment
- The undertaking of receiving payment
- Signature of the authorized personnel from both parties.
There are a number of templates available from which you can choose according to your requirements. These templates have a number of file formats which can be selected according to your preference.
Preview and Details of TemplateExcel (.xls) 2007+ and iPad Size 28 Kb | Download
OpenOffice (.ods) Calc [Cal] Size 17 Kb | Download
License: ENERGY (Personal use only)
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Why is advance receipt important to use?
There should be a proper use of supportive documents if you are running a business working on advance payments and want to strengthen the relationship with your customers. in case of any dispute, the advance receipt can save both parties. It is important to keep a copy of the receipt with you when you issue it to your customers.
What should be included in the advance receipt?
Although the advance receipt issued by every business varies, there are some details which are most important to be added to every receipt and we can find them in every advance receipt template we use. These details are:
- The name and details of the person receiving the advance payment
- Name and details of the person paying the advance payment
- The total amount paid in the form of advance payment
- Details of the product or services sold
- Total amount due
- Terms and conditions of the business
Advance receipt templates:
This template is generally used by those people who are in need to use the advance receipts frequently. The template saves them from having to design a receipt from scratch and invest their time in adding details everything an advance payment is made. In other words, this template is a great tool for saving time.