Payment (paid in full) receipts acknowledge that a monetary transaction has been made between two parties. The amount paid is the entire sum due by one party to another for the purchase of particular goods or services.
For creating a payment receipt, you will require a template that addresses all the requirements of the receipt. The template contains the structure of the receipt and information can be filled when required.
To learn more about the payment (paid in full) receipts, keep reading below:
When to Use a Receipt of Payment-in-full?
A receipt of payment-in-full is required whenever a buyer of goods or services has completed all the payments due towards the seller. Through a receipt of payment, a seller acknowledges that they are not seeking any more amount due from the buyer.
A payment receipt is signed by the seller and provided to the buyer. It is recommended that both the seller and the buyer should keep a copy of this receipt.
Unlike other types of invoices, a receipt of payment-in-full does not require a detailed breakdown of the goods or services provided. For example, in case the receipt is provided for the rent paid by the tenant, the description can simply mention ‘rent’.
Information to Include in Payment Receipt
A payment receipt includes the following information:
Receipt number is not mandatory, but it is useful when there have been multiple payments between the payer and the payee. These numbers help in record keeping as well as correspondence.
Payer information should include the name, mailing address, and contact number of the person who has made the payment.
Payee information contains the name, mailing address, and contact number of the person receiving the payment.
Date of Payment
Provide the exact date on which the payment has been made to the payee. The date is important for record keeping purposes.
Purpose of Payment
A payment in full receipt can be used for any purpose. Mention the purpose briefly on the receipt.
Amount of Payment
Mention the entire amount that is paid to the payee. If there are any taxes or discounts applicable, mention them as well.
How to Write a Paid (in full) Receipt?
Follow the steps below to create a Payment (paid in full) receipt:
Step 1: Download the template
Download the payment receipt template in Word or PDF format. The Word format allows room for modifications while the PDF format can be printed directly.
Step 2: Modify the template
There is no standard structure for the payment (paid in full) receipt template. Add, remove, or rename any of the fields provided in the template based on your requirement. For instance, some people like to add the letterhead of their business over the template.
Step 3: Fill in the information
Print multiple copies of the receipt template. When you need to write a receipt, enter the information required in the printed receipt template.
Step 4: Signature
Once the required information is filled in, the Payee must sign the receipt and mention their name. The signature of the payer is not required. Both parties can keep a copy of the receipt.
Payment receipts help in solving conflicts in the future about any issues between two parties involved in a transaction. These receipts also come in handy for tax filing purposes. Therefore, take special care while creating the payment (paid in full) receipt.