Definition
A receipt is a document that confirms a payment has been received. It is issued after the buyer pays and typically shows the amount, date, payment method, what was paid for, and the invoice it settles. Receipts are proof of payment for the buyer and a record of cash received for the seller.
Also called: Payment receipt, Proof of payment
Receipt in practice
The key difference from an invoice is timing and purpose. An invoice asks for money; a receipt confirms money arrived. For a single transaction you may issue both: the invoice first, then the receipt when the invoice is paid.
For many businesses an invoice marked "Paid" with the payment date and method works as a receipt. Clients who need proof for expense reports or tax deductions often prefer a dedicated receipt.
Frequently Asked Questions
Do I have to give a receipt?
Rules vary by country and transaction type, but it is good practice for every payment, especially cash. Consumer protection laws in many places require receipts for retail sales above a threshold.
Can a receipt replace an invoice?
Not for business records. The invoice documents the sale and any tax charged; the receipt documents the payment. Keep both so revenue and cash are traceable.