Payment receipt - What is a payment receipt?
A payment receipt is a document given to a customer as proof of full or partial payment for a product or service
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A payment receipt is also referred to as a ‘receipt for payment’. It is created after payment has been entered on a given sale. The amount of payment can be the full amount stated on the invoice for the sale, or a partial amount.
Payment receipts can be useful for both the seller and the buyer, and are an additional document used in communication in the sales process.
What is included on a payment receipt?
While there are no specific requirements for what information must be included on a payment receipt, typically, a payment receipt will include the following:
- The seller’s name/logo
- A clear label (‘Payment receipt’)
- The original invoice number
- The date the payment was received
- The amount received
- Any remaining amount due
If the related invoice has been paid in full, this should also be clearly indicated on the payment receipt, preventing any confusion on the part of the customer.
What is the difference between a payment receipt and a sales receipt?
Despite the similarities, a payment receipt is different from a sales receipt in a few key ways that can be important for businesses to understand.
Payment receipts: created to provide the customer with a proof of payment. It is a simple document that outlines the amount received by the seller. It confirms that the payment has been received and gives the basics on the sale.
Sales receipts: more structured and resemble simplified invoices (without the invoice number or customer details). Only created once full payment has been received, through one payment method. Sales receipts often include information about the payment method as well as the date and amount of payment. Sales receipts are more specific and include tax specifications.
Sales receipts can be required by some businesses in cases of returns or exchanges.
Why issue a payment receipt?
A payment receipt is issued to a customer who is looking for a proof of the payment they have made on an invoice for a service or product.
While payment receipts may seem to be primarily for the customer, they can also be useful for the issuing business in the case of partial payments, as they can act as a payment reminder for any remaining amount due.
Payment receipts and invoicing software
Creating a payment receipt might seem like an extra step that’s just taking up more time you could be spending on more important aspects of running a business. Fortunately, online invoicing software like Debitoor provides you with a fast, easy way to send proof of payment to your customers.
Confirm payments made on your invoices and give your customers a reminder of how much they still owe, all in one document, sent online and linked to the original invoice.