Invoice vs receipt
An invoice asks for payment; a receipt confirms it has been received. Send the invoice first, and the receipt when the money arrives. Businesses often need receipts for expense claims, rent, cash sales, deposits and donations.
What to put on a receipt
- Receipt number: sequential, like invoices (RCT-0001, RCT-0002…);
- date of payment;
- the name of the payer and the business receiving it;
- what the payment was for, with amounts and any tax;
- payment method (cash, card, bank transfer, UPI, cheque) and the transaction reference;
- the amount received and any balance still owed;
- if the payment settles an invoice, the invoice number. Add it in the notes.
Common uses
| Situation | Tip |
|---|---|
| Rent receipt | Put the property address and the month in the description, e.g. "Rent for October 2026, Flat 4B". Tenants in India claiming HRA usually need the landlord's PAN when annual rent exceeds ₹1 lakh. |
| Cash sale | Choose "Cash" as the method. A receipt is your proof, since there's no bank record. |
| Deposit or advance | Enter the full price as the item and the deposit under "Amount already paid": the receipt shows the balance due. |
| Freelance payment | Quote the invoice number and the platform reference (PayPal, Wise or bank transaction ID). |
Frequently asked questions
Is a receipt the same as an invoice?
No. An invoice requests payment and a receipt proves payment. Some businesses issue one document marked "Paid" that serves both purposes, but keeping them separate is clearer.
How do I show a partial payment?
Enter the amount received in Amount already paid. The receipt shows the total, the amount received and the balance due, and leaves off the PAID stamp until the balance is zero.
Can I make a rent receipt with this?
Yes. Use the description for the property and month, choose the payment method, and add the landlord's name and signature. For Indian HRA claims, add the landlord's PAN in the business tax ID field if the rent is over ₹1 lakh a year.
Does the receipt need a signature?
A printed name in Signed by is enough for most purposes. Some employers want a handwritten signature on rent receipts; print the PDF and sign it.
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