What Is A Receipt?
A sales receipt acts as a record of a transaction for both a seller and a buyer. A seller will issue a receipt when a sale is made to verify the amount paid by the buyer for the provided product or service.
Businesses often use receipts for inventory management and tax calculations, such as payroll or corporate income taxes. Customers may use them for accounting purposes or if they need to be reimbursed.
Just as consumers receive receipts from service providers or suppliers, businesses value receipts in business-to-business dealings and stock exchange transactions.
For example, if a business holds a contract they might receive a delivery instrument that acts as a receipt for that contract. When the contract expires, this delivery instrument acts as a receipt that the business can exchange for the underlying asset.
