What is a receipt?
A receipt is proof of payment. It tells your customer, and their accountant, that a specific amount was paid, when, how, and for what. Many customers need one to claim expenses or tax back, and it gives you a clean record of money received.
Receipt essentials
- A unique receipt number that continues automatically (RCPT-0001, RCPT-0002…).
- The payment date and method: cash, card, bank transfer, cheque, mobile wallet or PayPal.
- A transaction ID for card and online payments, so the payment can be traced.
- Itemised amounts and tax, with the total paid.
- A reference to the invoice it settles, if there was one.
Receipt vs invoice vs credit note
An invoice requests payment, a receipt confirms it, and a credit note reduces what was billed: for a refund, a return or a correction. With a invoice, receipt and credit note all carry the same details.
For customers who buy regularly, send a monthly statement of account that lists every invoice and payment.