What is a Receipt?
A receipt or invoice bill is a common yet significant tool used in day to day transactions. It serves as a proof that a sale or transaction has been made. In order that a sale, purchase or a business runs smoothly, it is generally considered wise that the buyer and seller have a receipt available for their records.
In most cases, receipt acts as a legal agreement between two parties. Several definitions exist for the concept of ‘receipt’ however, the essence is same.
Definition of Official Receipt
“Receipt is a written acknowledgment of having received a specified amount of money, goods, etc”.
“It is a written acknowledgement which grants legal validation to a repayment of all or part of a debt”.
Why do We Need to Write a Receipt?
Most speculative minds would argue as to why they should ask for a receipt even when purchasing a trivial item. Well, the possible explanation lies in the fact that receipts are extremely crucial tools which help you document your income for tax purposes of local, state and national government.
Furthermore, when making purchase of heavy items, it is considered ‘mandatory’ for the buyer and seller to have copies of receipts with them because in case, a legal implication turns out, both parties can present receipt as a solid proof.
What are E-Receipts?
Commonly, most purchases of electronic devices such as DVD players, cameras and mobile phones are made online. This does not mean that the online customers are deprived of receipts. In fact, when the transaction is being made, a digital receipt with necessary documentation is mailed to the customer which is to be printed out and maintained as evidence.
Types of Receipts
Receipt of Payment
A typical cash receipt of payment template includes the following information:
- Receipt Number
- Amount Received
- Check No.
- Money Order, No.
- Money Received by
A medical receipt, medical invoice or medical bill is bill of acknowledgment for a medical purchase e.g. medicine, prescription or a surgical instrument.
A medical receipt template includes the following information:
- Diagnosis Code
- Date of Visit
A sales receipt, sales invoice or sales check is a bill of sale issued by a store, vendor or person as a proof of a purchase made, mentioning the amount of payment, date, department and the name of the person who made the purchase.
A rent receipt is a bill of payment issued to a tenant by the landlord or landlady. A rent receipt format typically includes the following:
- Landlord’s name
- Renter’s name
- Billing period
- Start date
- End date
What to Include in a Receipt?
Being a buyer or a seller, it is useful for you to learn how to write a receipt. The knowledge of receipt writing will certainly add credibility to your receipt.
Write the name of the seller, address and telephone number on top of the receipt. In case of business transaction, the particulars must be written in printed ink on the receipt paper. The name of the store manager or owner must also be mentioned below it.
The first and last name of the vendee must be written after the aforementioned details.
Write down the date of transaction in bold. The date must include the day, month and year since it is used for warranty and end of the year tax purposes.
Give details of items purchased/sold such as product description, quantity, product number and any other information which would be helpful to recall the particular sale.
Details of Amount
The total amount must be broken down into the original price, tax, labor charges, discounts or other applicable categories. The price breakdown enhances the validity of sale.
Mode of Payment
Mention how the payment is received that is via cash, check or credit card. In case of check, the check number and amount must be written on the receipt and if the mode of payment is credit/debit card, list the last four digits.
Now that all essentials have been put down on the receipt, mark the bottom of the receipt with ‘Paid’ along with the signatures of the vender/seller. This indicates that the sale has been completed.