What a receipt must show (and receipt vs invoice)

What to put on a payment receipt, how it differs from an invoice, how to handle deposits and part payments, and a worked example: two receipts, one invoice.

Receipt vs invoice: before and after payment

An invoice asks for payment; a receipt confirms that payment arrived. They often list the same customer and lines, but they answer different questions, so one should not be sent in place of the other. An invoice marked "paid" works informally; a separate receipt with its own number is clearer in both sides' records.

Sometimes one document is both. A shop's till receipt is often also the simplified tax invoice for the sale: in the UK, a retailer may issue a less detailed VAT invoice when the total including VAT is GBP 250 or less. Whether your receipt must also meet invoice rules depends on your tax registration and country.

What a receipt should show

No single rule lists these for every country. They are the points a customer, an auditor or you yourself will look for later; where the receipt also serves as a tax invoice, the local invoice requirements come first.

  • Your business name and contact details, and your tax number if you are registered.
  • A receipt number and the date the payment was received.
  • Who paid: the customer's name, or their business name for expense claims.
  • What the payment was for, including the invoice number it settles.
  • The amount received with its currency, and how it was paid.
  • Any balance still outstanding after this payment.

Deposits and part payments

Issue one receipt per payment, not one per invoice. Each receipt states the amount received that day and the invoice or agreement it belongs to; the last one can say that the invoice is now paid in full.

A deposit taken before any invoice exists still needs a reference, and the quotation or order number serves. Do not write "paid in full" until the money has actually arrived: a cheque not yet cleared or a transfer the customer says is on its way is not the same thing.

Cash, card and bank transfer

Record the method, because it is how the payment will be traced. For a transfer, use the date the money was credited, not the date the customer says they sent it. For a card payment, the provider's slip records the transaction and your receipt ties it to the invoice. For cash, the receipt may be the only record, so count the money first and give the customer a copy.

Example: one invoice, two receipts

Invoice INV-2026-0042 totals USD 1,200. The customer pays a USD 500 deposit by card on 2026-09-01 and the rest by bank transfer, credited on 2026-09-28.

Receipt RC-2026-0015 records USD 500 received by card on 2026-09-01 against INV-2026-0042, with USD 700 still due. Receipt RC-2026-0021 records USD 700 received by transfer on 2026-09-28; since 500 + 700 = USD 1,200, it states that the invoice is paid in full.

How long to keep them

Keep a copy of every receipt you issue with the invoice it settles. The period depends on where you file: HMRC asks VAT-registered businesses to keep VAT records for at least six years, while the IRS generally points to three years from filing, longer in some cases. Where two rules apply, keep to the longer one.

Making a receipt in QuoteBill

Open the invoice and choose "Make a receipt for this invoice". The new draft keeps the customer and lines, gets its own number, and shows the invoice number as its reference. The date is labelled "Payment date" and the total "Amount received". The invoice is not changed or marked paid.

For a part payment, replace the lines with one line for the amount received, such as "Deposit for INV-2026-0042", and fill in the payment method. QuoteBill applies one tax rate per document. Save to the cloud and check the PDF before sending.

  • The amount matches the bank, card or cash record.
  • The payment date is the day the money arrived.
  • The invoice number is shown as the reference.
  • The remaining balance is stated, or "paid in full" if nothing is left.

Sources

140 Free Invoice, Quote & Receipt Templates

  • Receipt template

    Free receipt template for a payment you received: date, payment method, the invoice it settles and the amount. Download Excel or Word, or make a PDF online.

  • Free invoice generator

    Download the invoice as Excel or Word with the formulas working, or edit it online with your logo and tax settings and save a PDF. Free with a QuoteBill account.