Learn something new every day
More Info... by email
A payment receipt is a simple document that verifies payment was received in exchange for goods or services. This can be something as simple as what an individual gets after making a purchase at the grocery store, for example. Businesses also use payment receipts for product deliveries or independent contractors, among others, to ensure that both parties have proof that the goods or services were rendered. Some businesses combine a receipt with an invoice, and will just make a notation on the bottom of the existing document that payment was made; this can make filing slightly easier.
The purpose of this receipt in any situation is to verify that the correct amount was charged for the correct products or services. At its most basic, a payment receipt will show the name and address of the store, the date of purchase, and a description of the item. It will also include the price paid and any taxes that were added in, as well as the method of payment, such as cash, a check or credit card. Anyone being given a receipt after a purchase should quickly check to make sure that the amounts shown are correct; this is especially true if a credit card was used for the purchase, where a mistaken charge could be a big problem.
Between businesses, a payment receipt uses similar principles to basic receipts received from stores. It will include the same information, though the description of products or services may be more detailed. It may also include an invoice number if it is associated with a specific invoice number. Those giving receipts should generally keep copies, however, to ensure that the others are not altered.
Anyone booking vendors for a special event such as a wedding or party should also receive a payment receipt for any deposits placed, such as for a florist or caterer. The receipt will generally specify the amount paid as well as the amount still owed by the date of service. It is important to keep all receipts, but these are especially important because they also serve as a form of a contract between two parties. If the contract is not honored, the payment receipt can function as proof, if it becomes necessary to take the issue to court.