Acknowledgement letter for payment received

Reviewed in November 2026

An acknowledgement letter for payment confirms in writing that money arrived. It says how much, when, by which method and what the payment settles.

What it includes

Your business name and date
Payer name and account number
Amount, date, method and reference
Invoices or installments covered
Remaining balance
Name and signature

Acknowledgement letter for payment: full text

[Your business name]
[Address] · [Phone]

[Date]

[Payer name]
[Address]

Subject: Acknowledgement of payment received

Dear [name],

I confirm that [business name] received [amount in words] ([amount])
from you on [payment date] by [method], reference [reference].

This payment is applied to:
[invoice or installment]   [amount]
[invoice or installment]   [amount]

[Remaining balance: [amount], due on [date].]
[Your account is now fully paid. Thank you.]

Thank you for your payment.

Kind regards,

[Your name]
[Position]


SHORT VERSION FOR CASH RECEIVED

[Date]   [Place]

I, [your name], of [business name], acknowledge that I received
[amount in words] ([amount]) in cash from [payer name] today.
This payment is for [invoice, installment or loan].
Remaining balance: [amount or «none, fully paid»].

____________________________          ____________________________
[Your name]                           [Payer name]
Received by                           Paid by

Letter or receipt

A receipt is a short slip with the amount and the signature.

The letter adds context. It says which invoices are settled and what remains.

Businesses send the letter when a payment closes an account or a plan.

The last installment of a payment plan arrived.
A part payment came in and a balance stays open.
A disputed invoice was settled after an agreement.
A deposit was received before work starts.

What goes in the letter

Part	What it says
Header	Your business and the date
Payer	Name and account or customer number
Payment	Amount, date and method with its reference
Applied to	The invoices or installments it covers
Balance	What remains, or that the account is clear
Signature	Name and position of who confirms

A letter worked out

Greenleaf Tutors received USD 600.00 from the Patel family by bank transfer on 28 October.

The payment covers the October fee in full and USD 100.00 of November.

The letter confirms the payment and states a November balance of USD 400.00.

Common mistakes

No payment reference. The payer cannot match it to a transfer.
No balance line after a part payment.
Confirming a check before it clears.
Signing without a name or position.

A clear balance line avoids most later disputes.

Field by field

Header: the business name, address and the date of the letter. Use the date it is signed.
Payer: the full name and the customer or account number. For example Rina Patel with account GT-0412.
Payment: USD 600.00 received on 28 October by bank transfer. Add the bank reference so the payer can match it.
Applied to: each invoice or installment the money covers. List the amount against each one.
Balance: the amount still open with its due date. Write «fully paid» when nothing remains.
Signature: the name and position of the person who confirms. An unsigned letter carries less weight.

Variants for each kind of payment

Each variant changes the main paragraph of the letter.

Cash received: «I confirm that I received [amount] in cash from [name] on [date] at [place].»
Full settlement: «This payment settles invoices [numbers] in full. Your account now shows no balance.»
Part payment: «This payment reduces the balance to [amount]. The next payment is due on [date].»
Deposit: «I received a deposit of [amount] for [service]. Work starts on [date].»
Money received from a person: «I acknowledge receipt of [amount] from [name] as repayment of the loan of [date].»

A second example with cash in the Philippines

Mang Ramon pays PHP 15,000.00 in cash to a hardware store in Batangas.

The money covers the last two installments of a water pump bought on credit.

The store owner counts the cash with him and signs the letter on the spot.

The letter says the account is fully paid and lists both installments.

Ramon keeps the original. The store keeps a signed copy with the ledger.

Cash payments need extra care

Cash leaves no bank record. The letter becomes the only proof.

Count the money in front of the payer before signing.

Write the amount in words as well as in figures.

Give the original to the payer and keep a signed copy.

A ready message to send with the letter

«Good afternoon Mrs. Patel. Thank you for the payment of USD 600.00 received today. The acknowledgement letter is attached. The November balance is USD 400.00. Regards, Greenleaf Tutors.»

Send it the same day the payment shows in the account.

Keeping the records straight

Number each letter so it can be quoted later, such as ACK-2026-031.
Keep a copy with the invoice or the installment schedule it settles.
Update the customer's balance in the ledger the same day.
Attach the bank slip or transfer screenshot to your copy.
Send a final letter with «fully paid» when the last installment arrives.

A payer who later loses the letter can ask for a copy by its number.

Keep the copies for as long as your accountant keeps the sales records.

An auditor may ask to match each letter with a bank entry.

Let the reminders go out on their own

Makatea records each payment and sends the confirmation by WhatsApp or email. The next reminder only goes out if a balance remains. Try it free for 14 days, no card needed.

Free on Makatea: proforma invoice template · promissory note template · free receipt template · free invoice generator

Frequently asked questions

How do I write an acknowledgement letter for payment?

State the amount, the date, the method and what it settles. Close with the remaining balance.

Is an acknowledgement letter a receipt?

It works as one. It also explains which invoices the payment covers.

Should I send it for part payments?

Yes. Say the amount received and the balance still open.

Can I send it by email?

Yes. Email or WhatsApp with the letter attached is enough for most payers.

Does it replace a tax receipt?

No. Tax documents follow their own rules. This letter confirms the payment.

How do I write a letter for cash received?

Name the payer, the amount in words and figures and the date. Sign it in front of the payer.

Is there a sample acknowledgement receipt letter?

Yes. The template below has a full letter and a short version for cash payments.

Who signs the acknowledgement letter?

The person who received the money signs it. For cash the payer can also sign the copy.

Your recurring collections on autopilot

Makatea sends the reminders over WhatsApp and email, records every payment and tells you who to follow up with first.

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