When a customer pays a bill in full, he may request a receipt from the business to prove that the bill is settled. Companies may allow a customer to pay less than the full amount due and yet still consider the bill paid in full. If you are a business owner, to write a binding receipt for payment in full from a customer, you must clearly state the words “paid in full” on the receipt you give the customer.
Examine the account. If you own a business and a customer requests a receipt from you that documents a payment in full, you must gather the information from the customer’s account and determine if you agree the payment was made in full. You may agree to settle an account for a lower amount than what was originally owed if the customer requests it or you feel that receiving a portion of the amount due is better than receiving nothing.
Print a receipt. Many companies print receipts or invoices using an accounting program. A receipt is automatically generated through the system when instructed. The amount due on the invoice may not correlate with the amount the customer is paying, and this is typically when a customer requests a “payment in full” receipt. This receipt serves as documentation and proof the account is settled. A customer can use this receipt in court if the business decides to sue the customer for payment.
Hand-write a receipt. If your company does not have the ability to print a receipt, a hand-written receipt will also work. It should be written on company letterhead, state the customer’s name and payment amount.
Write that it is paid. On the printed or hand-written receipt, write the words “Paid in Full” in large letters that cover a good portion of the receipt. Sign your name on the receipt as well to make the receipt a binding receipt.
Photocopy the receipt. After making a copy of the receipt, give the copy to the customer and keep the original for your own records. Place the receipt in the customer’s file.