Payment receipt: definition and models
A payment receipt is a document that gives the details and provides proof of a financial transaction. Essentially, it’s that piece of paper (or email these days) you receive when the seller confirms they received your money for the product/service. It’s such a common document that is used endless amounts of times a day, that it’s often done incorrectly. So, let’s take a look at how we can avoid mistakes.
You hear the word “receipt” everyday, but what does it actually mean?
Receipts are issued in lots of scenarios to ensure there’s a written record of what has taken place. By far, the most common form of receipts are sales ones. Receipts outline a detailed description of a sale, or a payment that has been received, they contain details such as the date of the transaction, the price of the product/service, the amount paid, which product/service(s) that were purchased, the quantity, and the name of the company and client.
There are many purposes to that important piece of till-roll you always seem to lose the day before the 14-day return guarantee. First of all, it serves as an accounting record the company that provided a product. Also, it allows the customer to have written proof of the transaction in case they have to claim in regards to the items being bought.
Payment receipts are more relevant for the consumer and less so for the business, however, it’s a fundamental part of a transaction and you’ll need to know how to create it without making any errors. Although most receipts are simply a black and white record, it is possible to customise them, made easier by having the tools that come with a good online ERP system.
If you decide that you want to create your own payment receipt, then you’ll need to include the following things;
- To avoid any possible confusion, clearly state “Payment receipt” somewhere on the document.
- Include your company name and your tax information, and if possible, include the name of the person issuing the receipt.
- The transaction date.
- Number the document so that you can trace the transaction by the number of the receipt issued.
- Include the details of payee’s data (bank details etc, encrypted of course)
- The quantity of the products/services sold.
- The description of the product/service that is being sold.
- If possible, include the name and signature of the recipient.
However you choose to design your receipts, they should always be consistent. Don’t start removing or adding fields, set up your template and stick to it to avoid any confusion or headaches for you or your customer. The last thing you want is that your receipts become null and void.
Plus, don’t forget that every invoice should be duplicated. Each party involved should have a copy of the payment receipt so that it can be reflected in the accounts of both.
What should my payment receipt look like?
If you do a simple Google search, you will find hundreds of receipt templates, it’s a very simple document and shouldn’t take too much work to create, you can head to your most accessible word processor to create the document of your dreams. Alternatively, head to the nearest store to you right now, purchase something, and see what they give you – apologies, if you’re right outside a high-end luxury store right now.
After some research, you’ll see it’s a simple task. But remember, it’s even easier if you use an online ERP software such as Holded. You will find many variations and customisations to help you create something with your brand in mind.