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Receipt template: what it is
A receipt is the seller's written confirmation that a payment was received: who paid, how much, when, how, and what it settles. An itemised receipt for a sale or payment.
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Example: a filled receipt template
- The title says what the document is: a receipt.
- A unique number from a continuous series, allocated when you issue it.
- Your business name and address, and tax number if registered.
- Who it is for.
- Each line: description, quantity, rate and amount.
- Tax by rate.
- Amount received.
Worked example: the numbers behind the receipt above
| Item | Qty | Rate | Amount | Tax |
|---|---|---|---|---|
| Cast iron skillet, 12 inch | 1 | $54.00 | $54.00 | $0.00 |
| Chef's knife, 8 inch | 1 | $89.00 | $89.00 | $0.00 |
| Knife sharpening, per knife | 2 | $8.00 | $16.00 | $0.00 |
| Subtotal | $159.00 | $0.00 | ||
| Total | $159.00 | |||
No tax is charged on these lines, so the total equals the value of the supply.
How to fill in the receipt template
- Enter your business and, if known, the customer.
- List what was sold or paid for, with quantities and prices.
- Record how it was paid in the notes.
- Save the receipt; once signed in, it is numbered and filed with the customer.
Types of receipt, and which template to use
| Receipt | Used for | Template |
|---|---|---|
| Sales receipt | Goods or services paid for at the time of sale | This page |
| Payment receipt | A payment against an invoice | Payment receipt template |
| Cash receipt | Cash handed over in person | Cash receipt template |
| Rent receipt | Rent from a tenant | Rent receipt template |
| Donation receipt | Gifts to a charity | Donation receipt template |
What makes a receipt acceptable for expenses
- Seller name and address
- Date of the transaction
- Items or services and their prices
- Total paid and the currency
- Tax shown separately, where the seller is registered
- Payment method
What to put on a receipt, field by field
| Field | What to enter |
|---|---|
| Document title | Say exactly what it is: "Receipt". The title tells the buyer and the tax authority how to treat it. |
| Number and date | A unique number in a continuous series and the issue date. LuckPanda allocates the number when you issue. |
| Your business | Name, address, and tax ID if your state or client needs it |
| Customer | Who paid: name, and address if the receipt supports a claim |
| Lines | Description, quantity, unit and rate. Each line carries its own tax rate. |
| Tax | Sales tax where you must collect it, at the rate for the delivery address. |
| Totals | Amount received, the payment method and reference, and any balance still due. |
| Terms | The invoice or period this payment settles. |
United States rules for a receipt
- Keep receipts with your records for at least three years after filing (longer for property and employment records).
Mistakes to avoid
- Not saying which invoice or period the payment settles.
- Issuing a receipt before the money has cleared.
- Leaving out the payment method and reference.
- Writing receipts by hand with no copy kept.
Receipt vs other sales documents
| Document | When | Asks for payment | Tax document | In the books |
|---|---|---|---|---|
| Quotation / estimate | Before the order | No | No | No |
| Proforma invoice | After the order, before supply | Advance only | No | No |
| Invoice / tax invoice | On supply | Yes | Yes | Yes: sale and receivable |
| Receipt | When paid | No, confirms payment | No (receipt voucher for advances in India) | Yes: payment |
| Credit note | After an invoice, to reduce it | No, reduces what is owed | Yes | Yes: reverses part of the sale |
Questions people ask
What is the difference between a sales receipt and a payment receipt?
A sales receipt itemises goods or services paid for at the time of sale. A payment receipt confirms a payment against an earlier invoice. Use whichever matches what happened.
How long should I keep receipts?
In the US, the IRS generally expects records to be kept for at least three years after you file. In the UK, sole traders keep them at least five years after the 31 January filing deadline and companies six years. In India, GST records are kept for 72 months.
Does a receipt need a number?
It should have a unique number so it can be traced. Numbers are allocated in sequence when you issue.