What is a payment receipt?
When making a purchase, buyers are often interested in the price of a product. When the buyer receives a price and total bill for their purchase, it is known as an invoice. When the payment is made, the buyer receives a payment receipt. A payment receipt is a proof that the customer has made the payment.
What is the difference between a payment receipt and payment invoice?
An invoice is issued to the buyer before they make the payment. Once the buyer’s shopping list is complete, they are given a total invoice for the price. The buyer checks the invoice and then makes the payment. Once the payment is made, the seller hands a payment receipt to the buyer. The difference between an invoice and receipt is that of before and after payment.
The payment receipt shows the amount of money that the buyer gave to the cashier, less the total bill and the exchange of money due to the buyer.
Is there any difference b/w a receipt or an invoice?
A request for payment is an invoice; while a receipt is the proof of payment made to the seller. Both invoice and receipts are essential in any business transaction. The invoice indicates the total bill for a purchase to the buyer. A receipt also serves many purposes. A receipt is proof of the buyer making a payment to the seller.
If the buyer needs a return or exchange, they must produce the receipt as proof of purchase from the same seller. Moreover, receipts are also important in bookkeeping and accounting records.
Receipts may also be useful in forecasting operating expenses and budgets. Receipts also minimize the chance for any dubious transaction or financial fraud in businesses. Auditors place high importance on receipts when auditing company expenses.
A payment receipt usually includes:
- the items bought along with a description, price and quantity
- the gross bill
- less any discounts available
- add sales tax if applicable
- the net amount due
- the total money the buyer paid and the exchange due to the buyer
In addition, the payment receipt must also include the date, time and the cashier name. It is also customary to list the name of the shop on the payment receipt.
What is ‘due on receipt’ mean on a receipt?
Any business dealing with its clients or buyers is authorized to issue a receipt. In many cases, the payment is expected to be made as soon as the invoice is received. This is called due upon receipt. That is the buyer must pay as soon as he/she receives the invoice. This kind of arrangement is most commonly found in shops, where the buyer makes immediate payment on the counter. Similar arrangements are also used by small businesses.
We are designing payment receipt templates that will be available for free download. See the templates given below.