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How to Make a Receipt of Payment: Template & Steps (2026)

Sara Artheta·

To make a receipt of payment, record the date, who paid and who received the money, what the payment was for, the amount paid, the payment method, and any remaining balance — then give it a unique number and sign it. A receipt of payment (also called a payment receipt) proves money was received, which matters most for cash, deposits and installment payments where there's no bank trail. Here's how to make one.

What is a receipt of payment?

A receipt of payment is proof that a specific payment was received. It's different from an invoice, which requests payment before it's made — the receipt confirms it after. If you bill first, send an invoice, then issue a receipt of payment once the money arrives. See receipt vs invoice for when to use each.

What a receipt of payment must include

  • Date the payment was received
  • Payer and payee — who paid and who received it
  • What it was for — the goods, service, rent or invoice number
  • Amount paid and the payment method (cash, card, transfer, check)
  • Balance remaining, if it's a deposit or partial payment
  • A unique receipt number and, for cash, a signature

Our guide to the parts of a receipt breaks these fields down further.

How to make a receipt of payment in 5 steps

  1. Title it "Receipt of Payment" and add the date and a receipt number.
  2. Name the payer and payee so it's clear who paid whom.
  3. State what the payment covers — reference the invoice number or describe the service.
  4. Record the amount and method, and mark it "Paid" (or "Deposit" for partials).
  5. Note any balance still owed, then sign and keep a copy.

Wording for cash and partial payments

For cash, write "Paid in cash," note the amount received, and sign it — the signature is the main proof when there's no bank record. See how to write a receipt for a cash payment.

For a deposit or installment, write "Deposit" or "Partial payment," show the amount received and the balance remaining, and note the agreed schedule so both sides have a clear record.

The fast way: generate a payment receipt

Rather than write one out each time, make a receipt of payment free with a live preview — it numbers the receipt, calculates totals, and downloads as a PDF or PNG with no sign-up to start. For cash specifically, start from a cash receipt template. If you also handle full sales, how to make a receipt covers the standard format.

Common mistakes to avoid

  • Not stating what the payment was for
  • Forgetting to record the payment method
  • Leaving off the balance on a partial payment
  • Reusing a receipt number
  • Not keeping a copy for your records

Frequently asked questions

What is a receipt of payment?
A receipt of payment is proof that a specific payment was received. It records the date, payer, payee, what the payment was for, the amount, the method, and any balance remaining. Unlike an invoice, which requests payment, a receipt confirms it.
How do I make a receipt of payment?
Title it 'Receipt of Payment' with the date and a unique number, name the payer and payee, state what the payment covers, record the amount and method, note any remaining balance, then sign and keep a copy.
What should a payment receipt include?
The date received, payer and payee, what the payment was for, the amount paid, the payment method, any balance remaining, a receipt number, and a signature for cash payments.
How do I write a receipt of payment for cash?
Include the payer and payee, the date, what was paid for, the amount, and the words 'Paid in cash,' then sign it. Because cash leaves no bank record, the signed receipt is the main proof of payment.
Is a receipt of payment the same as an invoice?
No. An invoice requests payment before it's made; a receipt of payment confirms it after. For services, you usually send an invoice first, then issue a payment receipt once the money is received.
How do I make a receipt of payment for a deposit?
Mark it 'Deposit' or 'Partial payment,' record the amount received, and clearly show the balance still owed. Note the payment schedule so both parties have a matching record.

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