How to make a receipt
- Type your Business name, Address and Phone, then check the Receipt number, Date (it starts as today) and Currency symbol.
- Under Items, enter each thing you sold with its Qty and Unit price. Replace the two example rows and use + Add item for more.
- Add a Discount if you took money off, the Tax rate (%), a Tax name such as Sales tax, VAT or GST, and choose Paid by.
- For a cash sale, type the Amount received and the receipt shows the change due. Edit the Footer message if you like.
- Check the preview, then select Print / Save as PDF and choose Save as PDF in the print window.
How the totals are worked out
- Line total = Qty times Unit price, rounded to the nearest cent (halves round up).
- Subtotal = the sum of the line totals.
- Tax = (Subtotal minus Discount) times the Tax rate, rounded to the nearest cent.
- Total = Subtotal minus Discount plus Tax. Change = Amount received minus Total.
Each line is rounded before it is added, so the printed amounts add up to the total. The IRS lists sales slips, receipts and cash register tapes as the documents that support your gross receipts (Publication 583).
Worked example
With the defaults, Coffee is 2 x $4.50 = $9.00 and Pastry is 1 x $3.25 = $3.25, so the Subtotal is $12.25. Sales tax (8.25%) is $12.25 x 0.0825 = $1.0106, which rounds to $1.01, so the TOTAL is $13.26, paid by Cash. Add a $2.00 Discount and $20.00 Amount received and the tax becomes 8.25% of $10.25 = $0.85, the TOTAL $11.10 and the Change $8.90. To find the right rate for your state first, use the Sales Tax Calculator.
Limits and edge cases
- A receipt has one tax rate. If some items are taxed differently, make one receipt per rate.
- Type amounts as 1250.50 or 1,250.50. A single comma with one or two digits after it, like 4,50, is read as a decimal comma. Negative prices are refused, so use the Discount field.
- You can list up to 60 items, with quantities up to 10,000 and prices up to 1,000,000.
- There is no logo, signature or tax ID field. For payment terms and a due date, use the Invoice Generator.
- Only issue a receipt for a real sale. Required details vary by country and state.
Frequently asked questions
What should a receipt include?
The business name and contact details, the date, a receipt number, each item with quantity and price, any discount, the tax, the total and how it was paid. The IRS says the law does not require any special kind of records, only that they clearly show your income and expenses.
What is the difference between a receipt and an invoice?
An invoice asks a customer to pay, so it has a due date and payment terms. A receipt confirms that payment was already made, so it shows how the customer paid and, for cash, the change given.
How long should I keep receipts?
For US taxes, keep records for 3 years from the date you filed the return, 6 years if you left out income of more than 25% of the gross income on it, and 7 years for a bad debt or worthless securities claim. Keep employment tax records at least 4 years.
Is the tax taken before or after the discount?
After. The tool subtracts the Discount from the Subtotal and then applies the Tax rate to what is left. Some states tax the full price when a manufacturer coupon is used, so check your state's rule.
How do I save the receipt as a PDF?
Select Print / Save as PDF, then pick Save as PDF as the destination in the print window. Switch off Headers and footers in the print options if you do not want the web address in the margin.
Sources: IRS Publication 583; IRS, Recordkeeping; IRS, How long should I keep records?