Different Types of Receipts

A receipt is a piece of paper confirming that a transaction has taken place; it is the proof of purchase sellers give customers after they have paid for a product or service, etc. You may be issued different kinds of receipts depending on the type of purchase. Nowadays, with the growth of the e-commerce industry globally, there are also electronic receipts, and they have the same validity as paper ones.

There are a few types of receipts in the classification of receipts:

• Original
• Credit Card Slip
•  Invoice

Original

An original receipt is a hardcopy receipt or invoice received directly from the vendor at the time of purchase and includes any faxed or scanned receipt/invoice. . It may be in the form of point-of-sale or order confirmation format. In the case of phone orders, “original receipt” means the copy of the receipt sent by the supplying vendor to the purchaser with the goods purchased. This should be annotated by the seller to indicate that the order was placed by phone or fax.

A receipt needs to include an original record of what was purchased. Any exceptions must be documented. Then receipt must include essential information such as:

• Shop or company name, address, phone number and/or email address. 
• The date of  transaction ,  month and year 
• Discount and tax 
• Unit price and total cost 
• Payment method 
• The quantity of the item bought 
• Item’s description

When returning or exchanging an item, most companies require proof of purchase via the original receipt before giving store credit or a refund.

Credit Card Slip

A credit card receipt is a written record summarizing a credit card transaction. It contains key information about credit card purchases, and they are very important for budgeting and tax purposes. 

Some of your credit card information is listed on it, such as:

• Name 
• Expiration date 
• The last four digits of your credit card number

 Credit Card Receipt Information Include: 

• Your Shortened Credit Card Number
• Merchant Information
• Authorization Code
• Transaction Information

Invoice

The invoice document is issued by a seller before receiving any payment, and it is given to the customer after they receive products or services. The invoice document has developed through custom and practice but it usually has several legal requirements imposed on it. The most significant of these are tax requirements especially in relation to Value Added Tax (VAT) and other similar charges and duties. Invoices must be accurate and authentic as they are printed and possibly stamped according to some jurisdictions, carried as legally valid original paper documents, often endorsed by a state consulate, and stored for a number of years according to local and international laws.Invoices generally outline payment terms, unit costs, shipping, handling, and any other terms outlined during the transaction.

Invoices are a critical element of accounting internal controls. Charges on an invoice must be approved by the responsible management personnel. Alternatively, an invoice is matched to a purchase order, and upon reconciling the information, payment is made for approved transactions. 

Modern-day invoices are transmitted electronically as an alternative to paper documents. Electronic invoicing, or e-invoicing, is a form of electronic billing to generate, store and monitor transaction-related documents between parties and ensure the terms of their agreements are fulfilled.

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There are different types of invoices such as:

• Standard invoice:

The most common type of invoice that small businesses create  records a purchase between a buyer and a seller and requests payment from the buyer. It is flexible enough to fit most industries and billing cycles.

• Credit Invoice 

A credit invoice, also called a credit memo, is issued by a business that needs to provide a client with a discount or a refund, or to correct a previous invoicing error.   

• Commercial invoice:

It is used for customs declaration in international sales of goods that are exported. 

• Proforma invoice:

It is a provisional bill of purchase sent to the customer by the company before providing the goods or services. A pro forma invoice provides the client with an estimated cost of the work to be completed.

• Recurring invoice:

These invoices are made and sent to customers at regular intervals for repeating transactions like subscription fees. Recurring invoices are common among IT businesses, who charge their clients the same amount each month for a package IT service.

•  VAT invoice:

Value Added Tax invoices are used when a company wants to charge VAT on sales made or reclaim the VAT charged on goods or services that they bought.

• Debit Invoice:

A debit invoice, also called a debit memo, is issued by a business that needs to increase the amount a client owes to the business. Debit invoices can be useful to small businesses and freelancers when they need to make a slight adjustment to an existing bill.

• Timesheet Invoice:

A timesheet is an invoice used when a business or employee is billing based on the hours they work and their standard rate of pay. Timesheets are used by contract employees who are paid hourly by their employer. 

• Expense Report:

An expense report is a type of invoice that an employee submits to an employer for reimbursement of business-related expenses. 

• Interim Invoice:

An interim invoice is used for billing on large projects where the business  or freelancer and the client have agreed to terms that include multiple payments. It helps to manage their cash flow while working on projects over long periods of time.

• E-invoice:

E-invoice is a blanket term applied to any invoice sent electronically, regardless of the specific type of invoice being sent. E-invoices are quicker and easier to create than standard print invoices.

Conclusion

There could be many different reasons you might need your receipts and knowing the type of receipts can help you organize them better and access them easier when needed.

In the HouseHood application, you can add and save your receipts and put them in different categories.