luckpandaQuick answer
Sales 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. Itemised proof of a sale paid at the counter, with sales tax.
Last reviewed:
On this page
Example: a filled sales receipt
- 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 |
|---|---|---|---|---|
| Hybrid bicycle, 21-speed, medium frame | 1 | $549.00 | $549.00 | $43.92 |
| Cycling helmet, adult M | 1 | $59.00 | $59.00 | $4.72 |
| U-lock with cable | 1 | $35.00 | $35.00 | $2.80 |
| Subtotal | $643.00 | |||
| Tax 8% | $51.44 | |||
| Total | $694.44 | |||
Tax is worked out per line on the amount after any discount.
How to fill in the sales receipt
- Enter your store name and address; add the customer if you have their details.
- List each item with quantity and price.
- Set your combined state and local sales tax rate on the taxable lines.
- Note the payment method and your return policy, then save.
What a sales receipt shows
- Store or business name, address and phone
- Receipt number, date and time of sale
- Each item with description or SKU, quantity and price
- Discounts and coupons, shown as their own amounts
- Subtotal, sales tax and total paid
- Payment method: cash, card with the last four digits, or mobile wallet
- Change given, for cash sales
- Return and exchange policy
Sales receipt, invoice or payment receipt?
For example, a bike shop sells a hybrid bicycle at 549.00, a helmet at 59.00 and a lock at 35.00. At a sample combined sales tax rate of 8%, tax on the 643.00 subtotal is 51.44 and the customer pays 694.44.
| Document | Issued when | Leaves a balance owing? |
|---|---|---|
| Sales receipt | Goods or services are paid for at the time of sale | No |
| Invoice | Goods or services are supplied now and paid for later | Yes, until paid |
| Payment receipt | A payment comes in against an earlier invoice | Only after a part payment |
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
When do I issue a sales receipt instead of an invoice?
When the customer pays in full at the time of sale. If they will pay later, issue an invoice; when that invoice is paid, a payment receipt confirms it.
Which sales tax rate goes on the receipt?
The combined state, county and city rate for where the sale takes place: your store for counter sales, and usually the delivery address for goods you ship. Show tax as a separate amount unless your state allows tax-included pricing.
Does the receipt need the customer's name?
Not for an ordinary retail sale. Add it when the customer asks, for warranty registration, or for a business buyer who needs it for expense records.
How is a sales receipt recorded in the books?
As a cash sale: income and sales tax collected, with the money going straight to the bank or the till. Nothing is posted to accounts receivable, because nothing is owed.