How to Create a Receipt for a Payment You've Received

A client has paid you, and now they want proof: for an expense claim, for their accountant, or just for their own records. That proof is a receipt, and writing one should take less time than the payment took to arrive.

This guide covers what a receipt needs to say, when to send one, and how to create one in DynamicAT, either on its own or straight from an invoice that has just been paid. Not sure whether you need an invoice or a receipt in the first place? Start with Invoice vs Receipt: What's the Difference.

What a Receipt Should Include

A receipt records a payment that has already happened. It needs enough detail for both of you to match it to the money later:

• A receipt number. Unique, and in its own series so it never clashes with your invoice numbers, for example RCPT-001.
• The payment date. The day the money reached you, not the day you wrote the receipt.
• Who paid you. The customer's name, plus their address or email if they want it on record.
• What the payment was for. A short description is usually enough, such as "Website maintenance, October" or "Logo design, final payment".
• The amount received. The total that actually changed hands, in the right currency.
• How you were paid. Cash, UPI, card, bank transfer or cheque.
• Your business details. Your name, contact details and logo.
• A signature, if needed. Some customers, especially when paying cash, expect the receipt to be signed by whoever took the money.

What a Receipt Leaves Out

Because the money is already in, a receipt drops everything an invoice uses to ask for payment:

• No due date or payment terms. Nothing is owed.
• No bank details or payment instructions. There is nothing left to pay.
• No tax, discount or shipping lines. A receipt records the one figure that matters: the total you received.

When to Issue a Receipt

• A cash or walk-in sale. No invoice was ever raised, so the receipt is the only record of the sale.
• A paid invoice. The client paid what you billed and wants confirmation that the money arrived.
• A customer asks for proof. For an expense claim, a reimbursement or their own bookkeeping.

How to Create a Receipt on Its Own

Use this for cash sales and any payment that didn't start with an invoice.

1. In your dashboard, click New and choose New Receipt.
2. Check the receipt number and set the Payment date.
3. Under Who paid you?, enter the customer's name and choose how the money arrived from Paid by. For a quick cash sale, the name can stay blank.
4. Under What was this payment for?, enter a description and the amount. Most receipts are a single line, so that is how the form opens. Need quantities and rates? Add a row and the full table appears.
5. Download the PDF, print it, or share a link your customer opens in their browser.

Where an invoice says "Bill To", a receipt says Received From. The total reads Amount Received, and there is a Received by line for your signature.

How to Turn a Paid Invoice Into a Receipt

If you invoiced the client first, there is nothing to retype. There are two ways in:

• When you mark an invoice paid. The confirmation message has a Create receipt button.
• From the document menu. Open the invoice's menu in your dashboard and choose Convert to Receipt.

Either way, you pick how the client paid, and the receipt opens with the client, the line items and the total already filled in. The invoice stays exactly as it was, so you keep both halves of the record.

If the invoice had tax, a discount or shipping on it, the receipt shows a single line, such as "Payment for INV-014", at the invoice's total. A receipt has no tax or discount rows, and the amount your client actually paid is the one figure it has to get right. If you have already made a receipt from that invoice, DynamicAT tells you before making a second one.

Receipt Numbering

Receipts number from their own series, starting at RCPT-001. Your invoices keep counting exactly as before, so a receipt never uses up an invoice number.

Receipts on Your Dashboard

A receipt is always marked Paid, since it only exists once the money is in. How it counts depends on where it came from:

• A receipt written on its own counts as revenue on your dashboard and in your reports. For a cash sale, it is the only record of that money.
• A receipt made from an invoice does not count a second time. The invoice already counted that payment, so your totals stay correct.

Is It Free?

Yes. Receipts are on the free plan and count towards the same 10 free documents as invoices and quotations. Pro removes the limit. See our free receipt generator for a quick overview.

Ready to write your first one? Create a free account, or if you're already signed up, start a new receipt.