A Receipt - also known as a General Receipt - is a document that proves that some payment was accepted for delivering a product or service during an accounting period. The payment can be in the form of cash sales or money received through the customer's account. In fact, it can be acquired from any source, including loans or credits, or any other type of funding from investors.
"Sale", in this case, is a term used to denote an exchange of products or services for money, paid in cash at the time of purchase or later in the form of credit. A business has to report a sale on its financial statements. Receipts serve as proof of income for a business, and expenses are presented as a loss: they are subtracted from the total amount of sales to demonstrate the profit the business has made.
What Is a Receipt Used for?
A General Receipt (or a "Document Receipt") is the most common form of a receipt. It is used on an everyday basis in official business transactions of all kinds. Usually, it is created by the seller of a product or service and is handed down to the buyer as a written proof that the service or product has been paid for. It can be used for a monetary transaction as well as for a donation. It is an important and useful tool employed by all businesses all over the world. Sometimes referred to as a general legal receipt, it provides a record of financial transactions and exchanges of goods, serves as a proof of payment in a claim settlement or conflict resolution case.
The receipt templates provided below may be used for general transactions, including documents and debts. These are simple documents that do not require much except for the most basic information about the purchase or service.
What Is the Difference between an Invoice and a Receipt?
When selling and purchasing a product or service, the parties enter into a transaction that constitutes an agreement, which can be verbal or written. The terms of this agreement can be documented with either an invoice or a receipt.
While both documents are used in accounting, an invoice (also called a bill) can be used prior to the payment. It is used after a transaction to show the merchandise or service has been paid for. It serves the purpose of tracking a sale. In other terms, an invoice informs the customer or client how much they owe the seller and when the payment is due. It includes the names of the products or services that the buyer is being billed for and the cost of each item. A receipt is used as evidence the payment has been made.